Carpenter Technology Corporation today reported income from continuing operations of $13.1 million or $0.30 per diluted share for the fiscal third quarter ended March 31, 2009, which included restructuring costs of $2.1 million or $0.03 per share for a facility closure. This compares with income from continuing operations of $50.5 million or $1.05 per diluted share for the same quarter a year earlier. Third quarter revenues, excluding surcharges, were down 24% compared to last year.

"As we announced last month, our revenue decline this quarter reflected continued slowness in global industrial activity and higher customer inventories," said Anne L. Stevens, chairman and chief executive officer. "Low oil prices have reduced demand in our energy segment, which had been a key growth driver in recent years. Also, demand in aerospace slowed significantly in the quarter."

"We continue to take the appropriate actions to reduce manufacturing and other costs to adjust to the lower production levels. We also made considerable progress in reducing inventory levels during the quarter," said Stevens. "Our focus is to deliver positive free cash flow and preserve our strong balance sheet, while continuing the strategic initiatives needed to prepare for the eventual market recovery."

During the quarter, the Company incurred $2.1 million in costs associated with the closing of its Crawley, UK metal strip manufacturing facility, which will allow the company to reduce fixed costs and utilize existing production capacity more efficiently.