ERO - Solid Demand Pricing Actions Aid Carpenter Technology | Benzinga
Carpenter Technology Corporation (NYSE: CRS) has been gaining from strong demand in its markets, cost-cutting initiatives and efforts to preserve liquidity. Acquisitions and investing in additive manufacturing will also aid growth.
Solid Backlog & Strong Demand: In the third quarter of fiscal 2024, CRS's backlog increased 3% sequentially and 12% year over year, backed by strong booking growth. The company expects continued growth across its end-use markets, especially in Aerospace, Defense and Medical applications, which is expected to boost its fiscal 2024 results. Notably, Aerospace is gaining from the pickup in global travel. Demand continues to accelerate across all aerospace submarkets as the supply chain ramps up to meet steadily increasing travel demand.
The company's record backlog levels indicate a positive near and long-term outlook for each end-use market.
Impressive Pricing Actions & Productivity: Despite a decline in revenues due to lower shipment volumes in the third quarter of fiscal 2024. CRS achieved a solid improvement in its earnings, courtesy of improved productivity, product mix optimization and pricing actions. For 2024, CRS projects an adjusted operating profit of $339-$344 million. If achieved, 2024 would mark the company's most profitable year on record.
Carpenter Technology demonstrated its recovery growth trajectory through fiscal 2023, with increased productivity ...