Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2019 Earnings Presentation
18 slides from Carpenter Technology's earnings presentation, Oct 25, 2018
Slide 1: Cautionary Statement: Forward-Looking Statements
Cautionary Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those proj
Slide 2: 1st Quarter Fiscal Year 2019
1st Quarter Fiscal Year 2019 Tony Thene President and Chief Executive Officer
Slide 3: Safety is Our Highest Value
Safety is Our Highest Value 3.7 3.3 © 2018 CRS Holdings, Inc. All rights reserved 4 Total Case Incident Rate (TCIR) 3.9 3.9 3.5 2.12.22.0 1.7 1.1 FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19 Q1
Slide 4: 1st Quarter Summary
1st Quarter Summary 9% sequentially discussions with customers accelerating © 2018 CRS Holdings, Inc. All rights reserved 5 EPS of $0.65 – solid performance and execution partially offset by annual planned preventative maintenance shutdowns Overall market conditions remain strong with all end-use ma
Slide 5: Q1-19 End-Use Market Highlights
Q1-19 End-Use Market Highlights vs. Q1-18 vs. Q4-18 Q1-19 Net Sales ex. Surcharge ($M)* Comments sub-market demand and broad industry participation 53% replacement activity 8% 7% 9% applications and improving Consumer sporting goods demand 16% *Excludes sales through Carpenter’s Distribution busines
Slide 6: 1st Quarter Financial Overview and Business Update
1st Quarter Financial Overview and Business Update Tim Lain Vice President and Chief Financial Officer
Slide 7: Income Statement Summary
Income Statement Summary *Detailed schedule included in Non-GAAP Schedules in Appendix © 2018 CRS Holdings, Inc. All rights reserved 8 Solid year-over-year growth; sequential decline due to planned preventative maintenance shutdowns $ Millions , except pounds and per-s hare am ounts Q1-18 Q4-18 Q1-1
Slide 8: Free Cash Flow Summary
Free Cash Flow Summary The clerical accuracy of certain amounts may be impacted due to rounding. *Detailed schedule included in Non-GAAP Schedules in Appendix © 2018 CRS Holdings, Inc. All rights reserved 9 Inventory build in Q1 to support volumes in second half of fiscal year Cash Available Borrowi
Slide 9: SAO Segment Summary
SAO Segment Summary © 2018 CRS Holdings, Inc. All rights reserved 10 Q2-19 Outlook Demand signals across end-use markets remain strong Operating income expected to increase up to 10% sequentially Maintain active engagement with customers and OEMs on Athens VAP qualifications Q1 Business Results Stro
Slide 10: PEP Segment Summary
PEP Segment Summary * Pounds related to pounds sold for Dynamet and Carpenter Powder Products only © 2018 CRS Holdings, Inc. All rights reserved 11 Q2-19 Outlook Continued strong demand for titanium products Continued favorable market conditions for the oil & gas sub-market Operating income expected
Slide 11: 1st Quarter Fiscal Year 2019 Closing Comments
1st Quarter Fiscal Year 2019 Closing Comments Tony Thene President and Chief Executive Officer
Slide 12: Acquisition of LPW Technology Ltd.
Acquisition of LPW Technology Ltd. © 2018 CRS Holdings, Inc. All rights reserved 13 Acquisition significantly enhances existing additive manufacturing platform Adds Differentiated Metal Powder and Lifecycle Management Capabilities Leader in uniquely specified metal powders and powder lifecycle manag
Slide 13: Closing Comments
Closing Comments record engine activity levels supported by diverse solutions additive manufacturing platform with acquisition of LPW © 2018 CRS Holdings, Inc. All rights reserved 14 Consistent execution of solutions approach driving ongoing backlog growth and broadening customer relationships and o
Slide 14: Appendix of Non-GAAP Schedules
Appendix of Non-GAAP Schedules
Slide 15: Non-GAAP Schedules: Adjusted Earnings Per Share
Non-GAAP Schedules (Unaudited) Adjusted Earnings Per Share Management believes that earnings per share adjusted to exclude the impact of special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses
Slide 16: Non-GAAP Schedules: Net Sales and Operating Margin Excluding Surcharge
Non-GAAP Schedules (Unaudited) Net Sales and Operating Margin Excluding Surcharge Revenue Management believes that removing the impacts of raw material surcharge revenue from net sales and operating margin provides a more consistent basis for comparing results of operations from period to period, th
Slide 17: Non-GAAP Schedules: Free Cash Flow
Non-GAAP Schedules (Unaudited) Free Cash Flow Management believes that the free cash flow measure provides useful information to investors regarding our financial condition as it is a measure of cash generated which management evaluates for alternative uses. © 2018 CRS Holdings, Inc. All rights rese
Slide 18: Non-GAAP Schedules: Free Cash Flow
——————————————————————————————————————————————————————————————E———E—E— Non-GAAP Schedules (Unaudited) Free Cash Flow $ jons Q1-18 Q4-18 Net cash (used for) provided from operating activities (7.4) 118.5 Purchases of property, plant, equipment and software (28.9) (54.0) Proceeds from disposals of pro
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