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In a Form 8-K filed on October 23, 2020, Carpenter Technology Corporation announced that it has recorded a net loss of $47.1 million, or $0.98 loss per diluted share, during the fiscal first quarter ended September 30, 2020. Operating loss was $48.8 million compared to operating income of $59.8 million in the prior year period.
“During the first quarter, we further strengthened our liquidity position through solid operating and free cash flow generation,” says Tony R. Thene, President and CEO of Carpenter Technology. “As anticipated, our operating results in the quarter were also impacted by lower volume due to challenging conditions in the Aerospace and Defense and Medical end-use markets that continue to be pressured as a result of COVID-19. Our facilities remain operational which speaks to the dedication of all of our employees as well as the benefits of our safety-driven culture and enhanced protocols.”
In addition to the cash generated from operations, the Company’s liquidity was relatively enhanced by the bond refinancing completed in the first quarter of fiscal year 2021.The Company issued $400.0 million of senior unsecured notes and used the net proceeds from the offering to repay in full $250.0 million of its 5.200% senior notes due July 2021 with the remaining proceeds available for general corporate purposes. Total liquidity, including cash and available credit facility borrowings, was $612.9 million at the end of the first quarter of fiscal year 2021. This consisted of $218.9 million of cash and $394.0 million of available borrowings under the Company’s credit facility.
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