Increase to Special Litigation Reserve Leads to Updated 2008 Results for Carpenter
08/26/2008 - Carpenter Technology reports an increase in its previously reported special litigation reserve due to a recent trial court decision related to alleged disposal of manufacturing wastes in 1973-74.
Carpenter Technology Corp. announced that the special litigation reserve previously reported as part of its fourth-quarter results for its 2008 fiscal year has been increased to $21 million ($0.28 per diluted share). The approximately $16-million increase is the result of a recent trial court ruling related to environmental activities from more than 30 years ago.
The adjustment brings the company’s net income from continuing operations to $37.4 million ($0.81 per diluted share) for the fiscal fourth quarter ended June 30, 2008, as compared to fourth-quarter net income from continuing operations of $46.9 million ($1.01 per diluted share) as previously reported on July 31st 2008. Full-year net income from continuing operations is now $200.5 million ($4.12 per diluted share).
The increase in Carpenter’s special litigation reserve follows a recent trial court decision in an environmental action involving the alleged disposal of Carpenter manufacturing wastes at a site in Bucks County, Pa. The alleged disposal occurred in 1973-74 by an independent transporter who was hired by Carpenter to dispose of the wastes properly. The court found that the transporter, instead, deposited the materials on his own family farm, which is currently the site of an ongoing cleanup. Carpenter expects to appeal the decision.
Carpenter Technology produces and distributes specialty alloys, including stainless steels, titanium alloys, and superalloys, and various engineered products.
