Carpenter Technology Corporation (NYSE:CRS) Q1 2024 Earnings Conference Call October 26, 2023 10:00 AM ET

Company Participants

John Huyette - VP of IR and Corporate Development

Tony Thene - President and CEO

Timothy Lain - SVP and CFO

Conference Call Participants

Elizabeth Huseynov - TD Cowen

Josh Sullivan - The Benchmark Company

Chris Olin - Northcoast Research

Michael Leshock - KeyBanc Capital Markets

Operator

Good day, and welcome to the Carpenter Technology Corporation First Quarter 2024 Fiscal Year Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. John Huyette, Vice President, Investor Relations. Please go ahead.

John Huyette

Thank you, operator. Good morning everyone and welcome to the Carpenter Technology earnings conference call for the fiscal 2024 first quarter ended September 30, 2023. 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, Senior 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 30, 2023 and the exhibits attached to that filing.

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

I will now turn the call over to Tony.

Tony Thene

Thank you, John. And good morning to everyone on the call today.

I will begin on Slide 4 with a review of our safety performance. For the first quarter fiscal year 2024, our total case incident rate was 2.1. This rate has been elevated over the last several quarters as we integrate a large number of new employees into our operations. We are focused on specific actions to maintain the lower severity and identified potential risks. Our target remains a zero injury workplace and we will continue to work tirelessly to achieve that target.

Now let's turn to Slide 5, and a review of the first quarter. On our last earnings call, we provided an outlook for the first quarter of fiscal year 2024 and signaled operating income was expected to be flat or slightly up sequentially, even though we outperformed the fourth quarter expectations.