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Carpenter Technology Rolls Out Solution for Next-Gen Engines

Zacks Equity Research

Recently, Carpenter Technology Corporation CRS announced the development of an advanced jet engine gear solution — Pyrowear 225 alloy — primarily for high-performance applications.

Carpenter Technology’s Pyrowear 225 alloy offers higher strength with temperature improvement. This solution will enable next-generation engines to realize further improvements in fuel efficiency, by allowing operation at higher temperatures with reduced weight.

The inclusion of Pyrowear 225 alloy into Carpenter Technology’s industry-leading solution will support customers to enhance space availability, save weight and extend endurance limits when designing for critical components.
The solution builds on Carpenter Technology’s Pyrowear gear solutions portfolio. Pyrowear 225 alloy achieves ultimate strength of 225 KSI, which signifies a higher improvement in strength compared to other low-alloy solutions.

Shares of Carpenter Technology have declined 20.2%, over the past year, compared to the industry's loss of 16.7%.

Also, lately, Carpenter Technology, in collaboration with BMT Aerospace, announced the development of an additively manufactured (AM) aerospace pinion, using Carpenter Technology’s Custom 465 Stainless. The collaboration between these companies has resulted in a simplified and improved manufacturing process for the aerospace part through AM, opening up opportunities for expansion of AM production across multiple applications.

Sales to the Aerospace and Defense end-use market continue to be strong, reflecting the impact of a robust product mix for materials utilized in aerospace engine applications and solid demand for defense applications driven by specific programs. The Medical end-use market continues to grow through expanded relationships with leading industry OEMs which increasingly recognize the value of the company’s high-end solutions. The company continues to benefit from encouraging conditions in the orthopedic and cardiology sub-markets.

Sales to the Energy end-use market have also been increasing, aided by strong oil and gas markets, and improved demand for power generation applications.
Carpenter Technology remains focused on the continued execution of its commercial strategy. Through the implementation of the Carpenter Operating Model, the company has unlocked incremental capacity via efficiency and productivity improvements across its businesses. The company also continues to focus on expanding its leadership position in additive manufacturing and soft magnetics to further boost core capabilities.

Carpenter Technology Corporation Price and Consensus

Carpenter Technology Corporation Price and Consensus

Carpenter Technology Corporation price-consensus-chart | Carpenter Technology Corporation Quote

Zacks Rank & Key Picks

Carpenter Technology currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Basic Materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 17.7% in the past year.

Flexible Solutions has an outstanding projected earnings growth rate of 342.9% for the current year. The company’s shares have soared 181.7% in a year’s time.

AngloGold has an estimated earnings growth rate of 90.6% for the ongoing year. Its shares have surged 95% in the past year.

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