Carpenter Technology Reports Second Quarter Results

Carpenter Technology Corporation CRS today reported net income attributable to Carpenter of $9.3 million or $0.21 per share for the quarter ended December 31, 2010. This compares to net income of $3.5 million or $0.08 per share for the same quarter 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 Amega West transaction costs, unplanned equipment outages and customer requested volume shifts into the third quarter. Free cash flow for the quarter was negative $89.9 million including the impact of the Amega West acquisition and further inventory build. The higher inventory is mostly needed to support strong expected second half shipments. In certain areas, there was a build-up of excess inventory that will be reduced over the second half of the year.