3D Printing Service ProvidersAM PowdersFinancial ReportsMaterialsMetalsMoney & Funding

Carpenter Technology to focus more on AM after streamlining operations

Fiscal year results show challenging period and hint at recovery

Stay up to date with everything that is happening in the wonderful world of AM via our LinkedIn community.

After making significant investments in developing its own AM service and AM materials manufacturing capabilities, Carpenter Technology underwent a series of streamlining operations during the COVID-19 crisis. Now the company seems to be rebounding and ready to enter a new period of growth, led by AM and other key emerging areas such as electrification.

“Looking ahead, our focus is centered on capitalizing on emerging opportunities across our end-use markets as conditions further improve,” said Tony R. Thene, President and CEO of Carpenter Technology. “We are a leaner and more flexible company and remain a critical solutions provider across our end-use markets. Our strong position in our core business is supported by our capabilities in key emerging areas including electrification and additive manufacturing that further support our long-term growth profile.”

While the company overall recorded decreasing revenues and significant losses, both for the fiscal year close on June 30th and for Q4, the Performance Engineered Products (PEP) segment, which includes AM activities, recorded growing quarterly revenues ($77.5 million against $77.1 million in the same quarter last year) and reduced the operating loss in the fourth quarter of fiscal year 2021 from $8.4 million to $2.3 million).

Carpenter Technology to focus more on AM after streamlining operations

The special items in the current quarter also include $1.6 million of inventory write-downs from restructuring, $1.5 million in restructuring and asset impairment charges associated with executing against plans to streamline the Company’s Additive business units and $2.9 million ($2.1 million included in SAO segment, $0.8 million included in PEP segment) of costs associated with COVID-19.

The COVID-19 costs in both periods principally consist of direct incremental operating costs including outside services to execute enhanced cleaning protocols, additional personal protective equipment, isolation pay for production employees potentially exposed to COVID-19 and various operating supplies necessary to maintain the operations while keeping employees safe against possible exposure in the Company’s facilities.

The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. Effective July 1, 2020, the Company’s Carpenter Powder Products business was merged into the Carpenter Additive business. The Amega West business was also part of the PEP segment however the business was divested during the quarter ended September 30, 2020.

The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. It is our belief this model will ultimately drive overall revenue and profit growth. The pounds sold data above for the PEP segment includes only the Dynamet and Additive businesses.

 

Research 2021
Ceramic AM Market Opportunities and Trends

This market study from 3dpbm Research provides an in-depth analysis and forecast of the ceramic additive ma...

Davide Sher

Since 2002, Davide has built up extensive experience as a technology journalist, market analyst and consultant for the additive manufacturing industry. Born in Milan, Italy, he spent 12 years in the United States, where he completed his studies at SUNY USB. As a journalist covering the tech and videogame industry for over 10 years, he began covering the AM industry in 2013, first as an international journalist and subsequently as a market analyst, focusing on the additive manufacturing industry and relative vertical markets. In 2016 he co-founded London-based 3dpbm. Today the company publishes the leading news and insights websites 3D Printing Media Network and Replicatore, as well as 3D Printing Business Directory, the largest global directory of companies in the additive manufacturing industry.

Related Articles

Back to top button

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are necessary for the website to function and cannot be switched off in our systems.

In order to use this website we use the following technically required cookies
  • PHPSESSID
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services

STAY AHEAD

OF THE CURVE

Join industry leaders and receive the latest insights on what really matters in AM!

This information will never be shared with 3rd parties

I’ve read and accept the privacy policy.*

WELCOME ON BOARD!