Where Do We Go From Here?
May 4, 2011
Mark S. Kamon
VP International / Dynamet / CPP
Carpenter Technology Corporation
Unless otherwise noted, the logo and registered trademarks are property of CRS
Holdings, Inc. a subsidiary of Carpenter Technology Corporation.
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Confidential
Overview
• 36 years
• Carpenter
• Future
• Happiness
Engage – Exchange - Inspire
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2
Is U.S. Manufacturing Dying?
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3
U. S. Manufacturing Trends . . .
1985
2005
•Employees at local steel company
4,500
1,200
•U.S. Mfg. employees as % of total
16%
11%
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4
U. S. Manufacturing Trends . . .
1985
2005
•Employees at local steel company
4,500
1,200
•U.S. Mfg. employees as % of total
16%
11%
•U.S. share of global mfg.
20%
22%
•Total U.S. GDP - $Bil
4,500
12,500
•U.S. Mfg. GDP - $Bil
900
1,900
Manufacturing is alive and well . . .
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Carpenter Technology develops,
manufactures and distributes highperformance specialty alloys to meet the
challenges of advancing technologies.
(NYSE:CRS)
Confidential
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6
More Than a Steel Company
Since the early 1990s, Carpenter has grown
from a U.S. specialty steel producer to a
specialty materials producer with a global
reach.
A Global Presence
• About 50 manufacturing, sales and
distribution facilities on four continents
• in 18 different time zones
• in more than a dozen languages
• in which more than 10% of our
employees work outside the U.S.
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Carpenter Technology
Core Values
• Drive world-class innovation for
diverse applications
• Enable customer success in
demanding applications
• Loyalty, integrity, respect, dignity,
work ethic and professionalism guide
our actions
• Dedication, pride in craftsmanship,
quality and service shine through in
all we do
Aspiration
Become the most
profitable, most
global and most
respected company
in specialty metals
• Positive force in our community
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A Diverse Product Catalog
• High-strength steels
• Superior corrosionresistant alloys
• High temperature alloys
• Titanium alloys
• Stainless steels
• Tool and die steels
• other specialty and
custom grades
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Carpenter is All Around You
in These Major Global Markets
•
•
•
•
•
•
•
© 2011 CRS Holdings, Inc.
Aerospace
Energy
Automotive
Medical
Consumer Products
Industrial
Defense
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10
Carpenter Sales FY 2010
100%
80
Other 1
Canada 3
Medical 9
Mexico 5
Consumer 10
Asia Pacific 7
Automotive 8
Europe 16
Energy 7
Other 1
Tools/Other Steels 3
Ti Products 9
Stainless
Steels 33
60
Industrial 23
40
USA 68
Special Alloys 53
20
0
Aerospace 43
Market
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Geography
Confidential
Product Class
11
Engineered Materials For Aerospace
$604 Million
42% of Revenues CY2010
STRUCTURAL/ OTHER COMPONENTS
Flaptrack / Slat Track Components
Avionics / APU
Landing Gear
FASTENERS (Airframe/Pylon)
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ENGINE COMPONENTS
Confidential
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Engineered Materials For Medical Applications
Steady Market Growth and Share Gain in Higher Value Products
FRACTURE FIXATION
ARTIFICIAL DISCS AND
SPINAL
FIXATION
HIP AND KNEE
REPLACEMENTS
SURGICAL NEEDLES AND
STAPLES
VASCULAR DEVICES (stents)
DENTAL INSTRUMENTS
AND IMPLANTS
Arterial Stent
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2011
CRS
Holdings,
Inc.
rights
reserved
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CRS
Holdings,
Inc.All All
rights
reserved
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Diversifying Energy Applications
Oil & Gas
Power Generation
– Non Mag drill collars
– Wireline/slick line
– Completions
– Gas turbines
– Nuclear
Gas Turbine Disc
Wireline/
Slickline
Completions
Nuclear
Primary
Circuit
Non-Mag
collars
11 Additional Applications in Development
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Key Applications - Defense
Existing Applications
M-1 Abrams engine components
Applications in Development
Lighter – Faster - Stronger
Missile Systems
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15
Key Applications - Consumer
Existing Applications
Applications in Development
Specialty
Sporting
Goods
Tubulars
and Face cages
Cutting
Blades
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World Class Modeling Drives Efficiency
• Computational design used in new product development
• Increases speed to market and reduces manufacturing costs
Alloy Design
ESR Melting
THERMO-CALC (2009.07.17:14.15) :
DATABASE:TCFE6
W(CR)=0.2496, W(NI)=7.64E-2, W(MO)=4.1E-2, W(MN)=8E-3, W(CO)=2.7E-3,
W(SI)=4.9E-3, P=1E5, N=1;
2100
1:*CHI_A12
2:*SIGMA
2000
6 6
4
0.5
5
4
6
4
3
1700
3
1
1500
5
1400
1200
3
6
6
2
2
6
2
3
1
1
6
2
3
1100
0
2
4
6
8
10
12
14
16
18
20
-3
10
MASS_FRACTION N
1750
TL
1.5
2
2.5
3
Drawing
Ts
1400
00
13
12
00
5
4
1600
2009-07-17 14:15:05.49 output by user u26004 from DTHWKLDF1
1800
height (z/R)
TEMPERATURE_KELVIN
1840
6:*BCC_A2
1700
1300
electrode
5:*FCC_A1#1
1900
1800
0
3:*HCP_A3#2
4:*LIQUID
Forging
1100
3.5
0
1
radial distance (r/R)
State of the art simulation tools for process and
alloy development create competitive advantage
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Powder Technology Applications
Storage racks for spent nuclear fuel
Near net shapes
HIGHLIGHTS
HIGHLIGHTS
• New alloy has neutron absorbing
capability superior to current alloys
• The alloy will affect a net cost savings
by increasing the life of wet storage
racks for nuclear fuel to more than 60
years
• Metal powders and hot isostatic pressing
(HIP) can provide large near-net shapes
(NNS) with weight > 20 tons
• NNS can replace forgings and castings as a
manufacturing process for producing
components required in power generation,
oil & gas
Powder technology targeting the energy market.
Market size >$100M
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Specialty Alloys
Main plant headquarters
in Reading, PA since 1889
• Manufactures longproduct specialty
metals in a wide
range of shapes, sizes
and finishes
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Focus on Establishing a Broad Footprint
Production Locations
•
Carpenter Technology
Corporation (Reading, PA)
•
Talley Metals Technology Inc.
(Hartsville, SC)
•
Shalmet Corporation
(Orwigsburg, PA; Elyria, OH)
•
Dynamet Inc.
(Washington, PA; Clearwater, FL)
•
Carpenter Powder Products
(Bridgeville, PA; Woonsocket, RI;
Torshalla, Sweden)
•
Carpenter Specialty Wire
Products (Orangeburg, SC)
•
Amega West Services
(Tyler, Texas)
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Production
Distribution & Sales
Confidential
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Workforce of the Future . . .
Then
Now
Company Loyalty
Mobile
Security
Growth / Diversity
HS/BS/MS
MS/PhD/Special
Move Locations
Selective
Job #1
Multi-Faceted
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Leaders of the Future . . .
• International experience desired / required
• Science and Technology experience
• Multi-cultural / multi-lingual
• Change is normal!
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Relocation Future . . .
• Third party provider
• Current Home:
- Marketing
- Selling transaction
- Family guidance
Future Home:
- Find it
- Fill it
- Zero family hassles
• Speed, full service, positive interaction
• High potential clients – sophisticated, future
company leaders
• 80% of all international relos “touch” the U.S.
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. . . “Life, Liberty and the Pursuit of Happiness”
Declaration of Independence
July 4, 1776
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“Pursuit of Happiness . . . “
H
-
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Honesty, Integrity
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“Pursuit of Happiness . . . “
H
-
Honesty, Integrity
A
-
Attitude
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“Pursuit of Happiness . . . “
H
-
Honesty, Integrity
A
-
Attitude
P
-
Pride - “Sign your actions”
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“Pursuit of Happiness . . . “
H
-
Honesty, Integrity
A
-
Attitude
P
-
Pride - “Sign your actions”
P
-
People - Build relationships
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“Pursuit of Happiness . . . “
H
-
Honesty, Integrity
A
-
Attitude
P
-
Pride - “Sign your actions”
P
-
People - Build relationships
Y
-
You - You make the choices . . .
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Confidential
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