Carpenter Technology slips on weak 4Q forecast
Carpenter Technology declines after saying economic concerns hurt its 4th-quarter results
NEW YORK (AP) -- Shares of Carpenter Technology Corp. fell Wednesday after the alloy maker gave a disappointing fiscal second-quarter outlook, saying the shaky economy is hurting sales of some of its products.
THE SPARK: After the market closed on Tuesday, Carpenter said it expects to report net income of 61 to 62 cents per share for the second quarter. It forecast net sales of $431 million for the quarter ended Dec. 31. Both results are up significantly from a year ago, but they're less than Carpenter's totals from the fiscal first quarter.
As a result the company expects reduced growth in its fiscal 2013 operating income.
Analysts expected Carpenter to report net income of 77 cents per share and $584 million in revenue, according to FactSet.
THE BIG PICTURE: The Wyomissing, Pa., company makes premium and specialty alloys, titanium alloys, stainless steels, and steels used in making alloys and tools. The company said demand for "premium and ultra-premium" products for aerospace and energy customers has increased, but sales of less-expensive products intended for the industrial or consumer markets are being hurt by the weak economy.
THE ANALYSIS: Sterne Agee analyst Josh Sullivan kept a "Buy" rating on the stock, saying the problems are "near-term in nature."
SHARE ACTION: Carpenter stock declined $2.18, or 4.1 percent, to $51.73 in afternoon trading. The shares have advanced about 20 percent over the last two months.
