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Carpenter Technology (CRS) to Hike Base Prices on New Orders
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Carpenter Technology Corporation (CRS - Free Report) recently announced a base prices hike on new, non-contract orders across the majority of its specialty alloy products by an average of 12-15%. The price rise will be effective with new orders placed after Mar 22. All other applicable surcharges will remain intact.
Carpenter Technology is a producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels and tool steels as well as drilling tools. Steel price is on the rise as the Russia-Ukraine war has disrupted steel exports, which account for around 10% of the global trade. Higher energy costs and demand-supply imbalance have forced steelmakers to increase prices.
The company’s Specialty Alloys Operations (SAO) comprises the company’s major premium alloy and stainless steel manufacturing operations. The SAO segment will gain from improved backlogs with strong Aerospace recovery in the second half of fiscal 2022. Aerospace is benefiting from strong lead times coupled with several contacts win with major Aerospace customers. Cost inflation pressures, labor shortages and the ongoing challenges from COVID-19 isolations across certain key work centers are likely to hurt the segment’s operating results in the fiscal third quarter.
Carpenter Technology’s end-market demand continues to improve on strong booking and backlog growth. Its industrial and consumer end-use market will gain from strong demand for semiconductor applications for its ultra-high-purity materials and electronics submarket in fiscal 2022.
The company’s financial position remains strong, which gives it the strategic flexibility to strengthen its long-term growth profile by investing in emerging technologies like additive manufacturing and soft magnetics. As electric vehicle demand continues to grow and program activity increases for electrifying short-range air travel, the company is increasing investments in motor technology and soft magnetic solutions. CRS’s Carpenter Electrification brands boost growth opportunities in soft magnetics solutions across its key end-use markets. It is poised to benefit from soft magnetics and additive manufacturing solutions for sustainable growth over the long term.
Price Performance
Carpenter Technology’s shares have gained 13.3% in the past year compared with the industry's growth of 33.3%.
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) , each sporting a Zacks Rank #1, at present.
Mosaic has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 22.2% in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 87.3% in a year.
AdvanSix has a projected earnings growth rate of 30.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 25% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing once, the average surprise being 23.6%. ASIX has surged 57.3% in a year.
Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised upward by 45.6% in the past 60 days.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 21.3% over a year.
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Carpenter Technology (CRS) to Hike Base Prices on New Orders
Carpenter Technology Corporation (CRS - Free Report) recently announced a base prices hike on new, non-contract orders across the majority of its specialty alloy products by an average of 12-15%. The price rise will be effective with new orders placed after Mar 22. All other applicable surcharges will remain intact.
Carpenter Technology is a producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels and tool steels as well as drilling tools. Steel price is on the rise as the Russia-Ukraine war has disrupted steel exports, which account for around 10% of the global trade. Higher energy costs and demand-supply imbalance have forced steelmakers to increase prices.
The company’s Specialty Alloys Operations (SAO) comprises the company’s major premium alloy and stainless steel manufacturing operations. The SAO segment will gain from improved backlogs with strong Aerospace recovery in the second half of fiscal 2022. Aerospace is benefiting from strong lead times coupled with several contacts win with major Aerospace customers. Cost inflation pressures, labor shortages and the ongoing challenges from COVID-19 isolations across certain key work centers are likely to hurt the segment’s operating results in the fiscal third quarter.
Carpenter Technology’s end-market demand continues to improve on strong booking and backlog growth. Its industrial and consumer end-use market will gain from strong demand for semiconductor applications for its ultra-high-purity materials and electronics submarket in fiscal 2022.
The company’s financial position remains strong, which gives it the strategic flexibility to strengthen its long-term growth profile by investing in emerging technologies like additive manufacturing and soft magnetics. As electric vehicle demand continues to grow and program activity increases for electrifying short-range air travel, the company is increasing investments in motor technology and soft magnetic solutions. CRS’s Carpenter Electrification brands boost growth opportunities in soft magnetics solutions across its key end-use markets. It is poised to benefit from soft magnetics and additive manufacturing solutions for sustainable growth over the long term.
Price Performance
Carpenter Technology’s shares have gained 13.3% in the past year compared with the industry's growth of 33.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) , each sporting a Zacks Rank #1, at present.
Mosaic has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 22.2% in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 87.3% in a year.
AdvanSix has a projected earnings growth rate of 30.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 25% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing once, the average surprise being 23.6%. ASIX has surged 57.3% in a year.
Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised upward by 45.6% in the past 60 days.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 21.3% over a year.