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Dec 31, 2023
Carpenter Technology Q2 2024 Earnings Report
Carpenter Technology reported a strong second quarter in fiscal year 2024, marked by increased operating income and earnings per share.
Key Takeaways
Carpenter Technology reported a strong Q2 FY2024 with net income of $42.7 million and EPS of $0.85. The company's operating income reached $69.8 million, driven by a solid performance in the Specialty Alloys Operations segment. Looking ahead, Carpenter Technology projects a profitable fiscal year 2024.
Reported earnings per diluted share of $0.85.
Achieved operating income of $69.8 million, up from $69.0 million in the previous quarter.
Specialty Alloys Operations segment operating income reached $83.3 million, up from $80.8 million in the previous quarter.
Generated $14.6 million of cash from operating activities.
Carpenter Technology
Carpenter Technology
Forward Guidance
Carpenter Technology projects operating income between $171 million and $191 million in the second half of fiscal year 2024, leading to a record-breaking year with total operating income between $310 million and $330 million. Additionally, the company aims to double its fiscal year 2019 operating income by fiscal year 2027.
Positive Outlook
- Unlocking capacity at key work centers, ramping to pre-COVID production rates
- Projecting $74 million to $79 million in operating income in the third quarter
- Expecting step up in profitability in the fourth quarter, reaching $97 million to $112 million in operating income
- Projecting $310 million to $330 million in total operating income for fiscal year 2024; would achieve the most profitable year on record
- Goal to double fiscal year 2019 operating income by fiscal year 2027
Challenges Ahead
- The cyclical nature of the specialty materials business and certain end-use markets
- Domestic and foreign excess manufacturing capacity for certain metals
- Fluctuations in currency exchange and interest rates
- Possible labor disputes or work stoppages
- Fluctuations in oil and gas prices and production