 Generated 137 million of operating cash flow; free cash flow of 100 millionTotal liquidity of 417 million including 193 million of cash on handExecuted portfolio and cost initiatives expected to deliver 60-70 million in annual cost savingsPHILADELPHIA, July 30, 2020 GLOBE NEWSWIRE -- Carpenter Technology Corporation NYSE: CRS the Company today announced financial results for the fiscal fourth quarter and year ended June 30, 2020. For the quarter, the Company reported a net loss of 118.4 million, or 2.46 loss per diluted share. Excluding special items, adjusted loss per diluted share was 0.31 in the quarter.We generated strong free cash flow in the quarter which further strengthened our already healthy liquidity position via a significant reduction in inventory, said Tony R. Thene, President and CEO of Carpenter Technology. The strategic decision to accelerate our inventory reduction plan to drive cash flow negatively impacted our operating results in the quarter. We also continue to deal with the incremental operating costs and reduced productivity associated with COVID-19 and its impact on our operations. With that said, our focus is clearly on protecting our near-term liquidity as we actively manage our business through the current uncertainty caused by the global pandemic. In addition, we have executed targeted cost reductions and portfolio restructurings expected to deliver annual cost savings in the range of 60 to 70 million. Also, we further increased our liquidity with the 400 million bond offering that we completed in July.Our facilities remain open which speaks to the dedication of our employees and the benefit of our core safety values. Demand patterns have been broadly impacted by COVID-19 and we are working closely with customers across our end-use markets as supply chains continue to adjust. While COVID-19 has created headwinds for our industry, we have successfully enriched and extended supply agreements with key Aerospace, Medical and semiconductor customers who recognize the benefits of our advanced material solutions and our demonstrated resilience in being able to safely operate our facilities.Moving forward, we will be in constant dialogue with our customers and align our production schedules to match their evolving material needs. While we currently expect demand patterns to remain subdued during the first half of fiscal year 2021, the long-term outlook for our key end-use markets remains strong and our supply chain position remains resilient. We have ample liquidity to navigate the current challenging environment and will continue to actively manage our business and take additional actions if necessary. We believe we will emerge from this crisis with even stronger connections with our customers, as well as increased market share across key Aerospace and Defense and Medical platforms and applications. Our established core business and leadership in critical emerging technologies including soft magnetics and additive manufacturing continue to support long-term sustainable growth and value creation for our stakeholders. Financial Highlights in millions Q4 Q4 Q3 YTD YTD FY2020 FY2019 FY2020 FY2020 FY2019 Net Sales437.3 641.4 585.4 2,181.1 2,380.2 Net Sales Excluding Surcharge a375.9 533.3 495.0 1,828.7 1,942.1 Operating Loss Income148.2 67.9 58.7 25.3 241.4 Adjusted Operating Loss Income Excluding Special Items a18.1 67.9 58.7 157.7 242.6 Net Loss Income118.4 48.9 39.9 1.5 167.0 Cash Provided from Operating Activities136.9 175.1 72.3 231.8 232.4 Free Cash Flow a99.8 115.8 13.0 21.8 53.7 a non-GAAP financial measures explained in the attached tables Net sales for the fourth quarter of fiscal year 2020 were 437.3 million compared with 641.4 million in the fourth quarter of fiscal year 2019, a decrease of 204.1 million 32 percent, on 32 percent lower volume. Net sales excluding surcharge were 375.9 million, a decrease of 157.4 million 30 percent from the same period a year ago.Operating loss was 148.2 million in the recent fourth quarter compared to operating income of 67.9 million in the same period last year. Adjusted operating loss, excluding the impact of restructuring and impairment charges, was 18.1 million in the recent fourth quarter.Cash provided from operating activities in the fourth quarter of fiscal year 2020 was 136.9 million, compared to 175.1 million in the same quarter last year. Free cash flow in the fourth quarter of fiscal year 2020 was 99.8 million, compared to 115.8 million in the same quarter last year. The decreases in operating cash flow and free cash flow primarily reflect the impact of lower earnings in the current quarter offset by significant inventory reduction in the current quarter relative to the same quarter a year ago. In addition, capital expenditures were 27.4 million in the fourth quarter of fiscal year 2020 compared to 49.7 million in the same quarter last year.Total liquidity, including cash and available credit facility borrowings, was 417.1 million at the end of the fourth quarter of fiscal year 2020. This consisted of 193.1 million of cash and 224.0 million of available borrowings under the Companys credit facility. In July 2020, the Company executed an offering of 400.0 million aggregate principal amount of 6.375 senior unsecured notes due 2028 in an underwritten public offering. The Company intends to use the net proceeds from the offering to repay in full its 250 million 5.20 senior notes due in July 2021. Excess net proceeds will be used for general corporate purposes.Conference Call and Webcast PresentationCarpenter Technology will host a conference call and webcast presentation today, July 30th at 10:00 a.m. ET, to discuss the financial results of operations for the fourth quarter and full fiscal year 2020 and selected fiscal year 2021 guidance. Please dial 1 412-317-9259 for access to the live conference call. Access to the live webcast will be available at Carpenter Technologys website and a replay will soon be made available at Presentation materials used during this conference call will be available for viewing and download at Financial MeasuresThis press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles GAAP. A reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in the attached schedules.About Carpenter TechnologyCarpenter Technology Corporation is a recognized leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, transportation, energy, industrial, medical, and consumer electronics markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive manufacturing AM processes and soft magnetics applications. Carpenter Technology has expanded its AM capabilities to provide a complete end-to-end solution to accelerate materials innovation and streamline parts production. More information about Carpenter Technology can be found at StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technologys filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 30, 2019, Form 10-Q for the quarters ended September 30, 2019, December 31, 2019 and March 31, 2020 and the exhibits attached to those filings. 