Carpenter Technology’s shares fell 2.6% after earnings. The quarter was mixed: planned maintenance outages drove a sequential sales decline, while management’s upbeat demand commentary was not yet reflected in sequential aerospace sales growth.
- First-quarter sales excluding surcharge were up 5% year over year but down 7% sequentially; management attributed the sequential decline to planned maintenance outages.
- Aerospace and defense sales rose 10% year over year and fell 5% sequentially. Commercial aerospace sales were the company’s second-highest quarter on record.
- Adjusted operating income reached a first-quarter record, up 28% year over year. SAO adjusted operating margin was 37.7%, matching the prior quarter’s record.
- Commercial aerospace bookings increased 25% year over year; bookings in aerospace distribution and structural were up 49% year over year. Management said it expects demand to strengthen in coming quarters.
- Defense sales declined sequentially, primarily due to a lack of clear funding.
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