Pennsylvania, US-based specialty alloy producer Carpenter Technology Corporation has issued its financial results for the second fiscal quarter ended on December 31.
Carpenter Technology reported a net income of $9.3 million in the quarter in question compared with a net income of $3.5 million in the corresponding quarter of the previous fiscal year. The company reported net sales of $375.6 million in the second fiscal quarter, up from $263.8 million of net sales in the same period of the previous fiscal year. Gross profit was $49.1 million compared with $35.6 million a year earlier.
Second quarter earnings benefited from a lower tax rate due to the retroactive extension of the research and development tax credit, which was largely offset by the Amega West transaction costs, unplanned equipment outages and customer-requested volume shifts into the third quarter.
As SteelOrbis previously reported, Carpenter Technology acquired Amega West Services, LLC, a Houston, Texas-based manufacturer and service provider of complex components for directional drilling equipment early in the current month. Amega West Services, LLC was purchased from a group consisting of energy equity company Energy Special Situations Funds, other investors and certain Amega West employees for approximately $54 million.
"We are pleased with the continued strong volume and revenue momentum, which we expect to carry over into the second half of our fiscal year," said William A. Wulfsohn, president and chief executive officer of Carpenter Technology. "Our operating margins should noticeably improve over the next several quarters as pricing and mix improvement efforts hit the bottom line. We remain on track to achieve our fiscal year goals for revenue growth and operating margin improvement," he added