Carpenter Technology Corp. (NYSE:CRS) Q1 2020 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 10:00 am ET

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Carpenter Technology Corp. (NYSE:CRS) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Carpenter Technology Corporation First Quarter 2020 Fiscal Year Financial Results Conference Call. [Operator Instructions]

I would like to now turn the conference over to Mr. Brad Edwards, Investor Relations. Please go ahead.

Executive
Brad Edwards

Thank you, Operator. Good morning, everyone, and welcome to the Carpenter Technology earnings conference call for the fiscal first quarter ended September 30th, 2019. This call is also being broadcast over the Internet along with presentation slides. Please note, for those of you listening by phone, you may experience a time delay in slide movement.

Speakers on the call today are Tony Thene, President and Chief Executive Officer; and Tim Lain, Vice President and Chief Financial Officer. Statements made by management during this earnings presentation that are forward-looking statements are based on current expectations.

Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Carpenter Technology's most recent SEC filings, including the Company's report on Form 10-K for the year ended June 30th, 2019, and the exhibits attached to that filings.

Please also note that in the following discussion, unless otherwise noted, when management discusses sales or revenue that reference excludes surcharge. When referring to operating margins that is based on operating income and sales, excluding surcharge.

I will now turn the call over to Tony.

Executive
Tony R. Thene

Thank you, Brad, and good morning to everyone on the call today.

Let's begin on slide four, and a review of our safety performance. Our total case incident rate or TCIR was 1.4 in the first quarter of fiscal year 2020, which is slightly above the performance of fiscal year 2019. Over the last four years, we have made significant strides to improve the safety performance across our facilities. However, we've hit a point where our recordable rate has remained flat without improvement and we're disappointed with the results.

Our focus remains on accelerating proactive engagement with our employees and continued investment in the development of our leadership team. We're encouraged that as a result of our effort to redefine the safety culture over the last several years, our employees feel empowered to stop any process or equipment or action that is unsafe. Our employees are the face of our safety program. They are the most knowledgeable about the workplace and how to make it better.

In addition, we're putting all of our supervisors through a refresher course focusing on the principles of human performance. We're investing heavily in our safety programs and safe ergonomics, human performance, and the stop program to name a few. That will lead to sustainable and lasting improvement across our business. Through employee engagement, system improvement, and leadership commitment, we will continue toward our goal of a zero injury workplace.

Now let's turn to slide five and a review of our first quarter performance. In our first quarter, once again, we delivered impressive operating performance. Let me highlight a couple of noteworthy points. First, we delivered our 11th consecutive quarter of year-over-year sales growth