Business Segments

3 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has two reportable segments, Specialty Alloys Operations ("SAO") and Performance Engineered Products ("PEP").

The SAO segment is comprised of the Company's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama. The combined assets of the SAO operations are managed in an integrated manner to optimize efficiency and profitability across the total system.

The PEP segment is comprised of the Company's differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics.

The Company's executive management evaluates the performance of these operating segments based on sales, operating income and cash flow generation. Segment operating results exclude general corporate costs, which include executive and director compensation and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as restructuring charges and other specifically-identified income or expense items.

On a consolidated basis, no single customer accounted for 10 percent or more of net sales for the three months ended September 30, 2023 and September 30, 2022. On a consolidated basis, no single customer accounted for 10 percent or more of accounts receivable outstanding at September 30, 2023 and June 30, 2023.

Net Sales	Three Months Ended September 30,
($ in millions)	2023		2022
Specialty Alloys Operations	$	570.1	$	447.3
Performance Engineered Products	101.8		93.2
Intersegment	(20.0)		(17.6)
Consolidated net sales	$	651.9	$	522.9

Operating Income (Loss)	Three Months Ended September 30,
($ in millions)	2023		2022
Specialty Alloys Operations	$	80.8	$	19.9
Performance Engineered Products	9.1		6.3
Corporate	(21.3)		(17.1)
Intersegment	0.4		(0.8)
Consolidated operating income	$	69.0	$	8.3

Depreciation and Amortization	Three Months Ended September 30,
($ in millions)	2023		2022
Specialty Alloys Operations	$	27.8	$	27.1
Performance Engineered Products	4.0		3.8
Corporate	1.3		1.4
Consolidated depreciation and amortization	$	33.1	$	32.3

Capital Expenditures	Three Months Ended September 30,
($ in millions)	2023		2022
Specialty Alloys Operations	$	18.6	$	11.4
Performance Engineered Products	3.2		2.0
Corporate	0.2		0.1
Consolidated capital expenditures	$	22.0	$	13.5

Total Assets	September 30, 2023		June 30, 2023
($ in millions)
Specialty Alloys Operations	$	2,503.1	$	2,461.2
Performance Engineered Products	448.2		451.6
Corporate	139.7		159.0
Intersegment	(14.2)		(17.9)
Consolidated total assets	$	3,076.8	$	3,053.9