Revenue during the quarter dropped 14.62 percent to $389 million from $455.60 million in the previous year period. Gross margin for the quarter contracted 323 basis points over the previous year period to 11.83 percent. Total expenses were 99.64 percent of quarterly revenues, up from 94.56 percent for the same period last year. That has resulted in a contraction of 508 basis points in operating margin to 0.36 percent.

Operating income for the quarter was $1.40 million, compared with $24.80 million in the previous year period.

"Our first quarter results were significantly impacted by lower sales driven primarily by volatility and uncertainty in specific Aerospace end-use sub-markets, the moderating global Transportation end-use market and the ongoing weakness in Energy," said Tony Thene, Carpenter’s president and chief executive officer. "The industry wide and macro-economic challenges we are facing magnified the impacts of our historical sequential seasonality declines and drove volume lower than we had anticipated. The lower sequential sales, even with a modest mix improvement and continued cost savings, resulted in a $29 million reduction in pre-tax income, most of which is related to the lower Aerospace and Defense sales, as compared with the fourth quarter of fiscal year 2016."

The company has spent $26.60 million cash to meet investing activities during the quarter as against cash outgo of $25.90 million in the last year period.

The company has spent $8.20 million cash to carry out financing activities during the quarter as against cash outgo of $56 million in the last year period.

Cash and cash equivalents stood at $50.90 million as on Sep. 30, 2016, up 66.34 percent or $20.30 million from $30.60 million on Sep. 30, 2015.

Working capital increases
Carpenter Technology Corporation has recorded an increase in the working capital over the last year. It stood at $778.80 million as at Sep. 30, 2016, up 7.78 percent or $56.20 million from $722.60 million on Sep. 30, 2015. Current ratio was at 3.95 as on Sep. 30, 2016, up from 3.23 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 110 days for the quarter from 179 days for the last year period. Days sales outstanding went up to 64 days for the quarter compared with 59 days for the same period last year.

Days inventory outstanding has decreased to 89 days for the quarter compared with 160 days for the previous year period. At the same time, days payable outstanding went up to 43 days for the quarter from 40 for the same period last year.