Aerospace & Defense market sales were USD 293.9 million in the fourth quarter, up 49% compared with the same period a year ago. Excluding surcharge revenue, aerospace & defense sales were up 55% on 105% higher volume (or up 24% on 21% higher volume without Latrobe). Aerospace results reflect strength in all areas as airplane build rates remain high. Demand for engine materials remains strong driven by higher build rates of larger engines and share gain. Demand for titanium fastener material grew again in the quarter and is now well above prior peak levels. Nickel and stainless fastener demand has led to eight straight quarters of year over year growth and is approaching prior peak levels. Sales of aerospace structural components continue to grow with the success in selling Carpenter's Custom series stainless alloys and the addition of Latrobe's complementary products.
Industrial & Consumer market sales were USD 139.0 million in the fourth quarter, up by 3% compared with the same period a year ago. Excluding surcharge revenue, sales increased 13% on 4% higher volume (or flat revenues on 7% lower volume without Latrobe). The results reflect the continued impact of mix management and pricing actions on the legacy Carpenter business. The percentage of volume in differentiated product applications with strategically important customers continues to increase as a result of these actions.
Energy market sales of USD 79.2 million increased 13% compared to the same period a year ago. Excluding surcharge revenue, energy market sales increased 26% on 34% higher volume (or up 15% on 11% higher volume without Latrobe). Energy growth was led by Oil & Gas which continues to benefit from the Amega West acquisition. While the number of North American directional and horizontal land drilling rigs is level, offshore and international oil & gas exploration activity is increasing. Sales to the industrial gas turbine market were lower than the very strong prior year quarter. However, long term growth trends should remain strong with increasing global demand for peak power and the expectation that natural gas prices remain low.
Transportation market sales were USD 41.2 million, an increase of 11% from a year earlier. Excluding surcharge revenue, transportation sales increased 22% on 2% higher volume (or up 19% on 1% higher volume without Latrobe). Revenue growth far exceeded volume growth which reflects Carpenter's focus on higher value material solutions to increase fuel efficiency and lightweight vehicles. Despite economic uncertainty in the region, transportation sales in Europe increased 25% over the prior year led by demand growth for high value materials required in turbo charger, gasket and fuel system applications used in smaller, higher efficiency turbo charged engines.
Medical market sales were USD 38.3 million in the fourth quarter, up by 11% from a year ago. Excluding surcharge revenue, medical market sales increased 13% on 5% higher volume (relatively unchanged without Latrobe). The overall volume growth was consistent with long term industry growth rates.
International sales in the fourth quarter were USD 205.3 million, an increase of 36% compared with the same quarter a year earlier driven by a 74% increase in Asia Pacific sales and a 28% increase in European sales. Growth in Asia Pacific was led by sales into the aerospace and oil & gas end markets. Growth in Europe was led by increased demand for materials used for aerospace, oil & gas and high value automotive applications. Total international sales in the quarter represented 32% of total company revenue, compared with 31% in the prior year.
Source - Carpenter Technology Corporation
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