"Our third quarter had gains and challenges," said William A Wulfsohn, Carpenter Technology president and CEO. "We achieved solid growth in our aerospace and energy markets. However, increased customer deferrals during the quarter, combined with low sales to distribution customers and a weak defence-related mix, resulted in lower sales and operating income.
While the recent pattern of these deferrals has slowed and order intake has increased, Carpenter now expects its full-year earnings will be lower than previously forecast. "We are still targeting low double-digit growth in full year operating income, on an adjusted basis versus prior year," Wulfsohn explained. "However, if Q4 has similar in-quarter mix and deferrals as we experienced in Q3, we may have difficulty achieving this target.”
Latrobe's aerospace products contributed to year-over-year growth and aircraft build rate increases drove demand for engine-related materials and titanium fasteners versus prior year and prior quarter.
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