Carpenter Technology Corporatio (NYSE:CRS)

"We expect to begin to see modest improvement in our business through the year. Automotive demand may see some limited recovery as a new model year starts, while consumer and industrial demand will be tied largely to housing starts and overall consumer confidence,” said Stevens. “In our aerospace market, the most recent airline build projections indicate that the second half of our fiscal year may show improvement. The energy market, though, appears to be headed for a more extended downturn that could last later into 2010. Based on current economic conditions, we anticipate that overall demand across our markets will probably bottom out during our first fiscal quarter, with a gradual recovery after that. Total revenues in FY 2010 will still likely be less than in FY 2009.

“Our healthy balance sheet and cash generation ability will help carry us through this downturn as we prepare for the recovery,” said Stevens. “We are also looking beyond the current conditions and maintaining our focus on R&D, new products and global marketing programs to be ready for future growth opportunities.”

Source: Business Wire (July 30, 2009)   

“Looking ahead, we anticipate weaker demand in the fourth quarter due to conditions in most of our markets. This, in combination with continued negative effects from our second half inventory reductions, as well as costs to close the UK facility, will result in negative earnings for that quarter. Current indications are that end market conditions will remain soft for the balance of the calendar year,” said Stevens.

Source: Business Wire (April 28, 2009)

Guidance Report:

“The recession is impacting demand globally,” said Stevens. “Even as most of our markets weaken, we are successfully growing our position with several important customers and implementing new product initiatives with others. Our strong competitive position and focus on niche, high value products allow us to operate profitably with less exposure to the pressures faced by more commodity-oriented businesses.

“We continue to cut costs and manage cash flow while still moving forward with initiatives that are important to our long term success. Processing costs are being re-aligned to meet the lower demand expected through the rest of this fiscal year. We intend to reduce our inventory levels and lower capital spending.

“Despite these efforts,” said Stevens, “we expect the economic downturn will affect the second half of our fiscal year. Based on our current view of the markets, we project our revenues and volume during the second half of our year may be 20-25% lower than the same period last year.”

Source: Business Wire (January 27, 2009)