Carpenter Technology Corp. reported unaudited consolidated preliminary earnings results for the third quarter and nine months ended March 31, 2013. For the quarter, the company reported net sales of $581.4 million, operating income of $53.0 million, income before income taxes of $49.2 million and net income attributable to the company of $32.9 million or $0.62 per basic and diluted share against net sales of $539.9 million, operating income of $55.7 million, income before income taxes of $51.8 million and net income attributable to the company of $33.0 million or $0.69 per basic and diluted share for the same quarter last year. Negative free cash flow was $66.4 million against free cash flow of $9.6 million for the same period last year. For the nine months, the company reported net sales of $1,659.9 million, operating income of $167.3 million, income before income taxes of $157.8 million and net income attributable to the company of $105.1 million or $1.97 per diluted share against net sales of $1,385.1 million, operating income of $143.6 million, income before income taxes of $126.6 million and net income attributable to the company of $80.3 million or $1.75 per diluted share for the same period last year. Net income was $105.6 million against $80.6 million a year ago. Net cash provided from operating activities was $31.7 million against $47.9 million for the same period last year. Purchases of property, equipment and software were $223.5 million against $107.3 million for the same period last year. Negative free cash flow was $220.6 million against $95.9 million for the same period last year. The company now expects full year 2013 earnings to be lower than previously forecasted. The company is still targeting low double-digit growth in full year 2013 operating income, on an adjusted basis versus prior year. Effective tax rate will be 34%. The company expects the fourth quarter 2013 free cash flow to be positive, even without the proceeds of the sale from the distribution business.

Carpenter Technology Corporation has finalized the completion of a formal supply agreement that will provide Rolls-Royce with advanced technology materials used in the manufacture of jet engine components. The materials will be used on current and future Rolls-Royce engine platforms, in applications including rings, blades, vanes, and airfoils. Demand for the material will be generated by Rolls-Royce in the UK and the US, and its global suppliers. Materials in support of this program will be manufactured at Carpenter's Reading, PA and Athens, AL specialty steelmaking facilities.

Carpenter Technology Corp., Q3 2013 Earnings Call, Apr 25, 2013