SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report - March 19, 1996
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(Date of Earliest Event Reported)
Carpenter Technology Corporation
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(Exact Name of Registrant as specified in its charter)
Delaware 1-5828 23-0458500
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(State of Incorporation) (Commission File No.) (IRS Employer
I.D. No.)
101 West Bern Street, Reading Pennsylvania, 19601
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(Address of principal executive offices)
Registrant's telephone number, including area code: (610) 208-2000
The Exhibit Index is located on Page 4 of 7
Page 1 of 7
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Item 5. Other Events.
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The Registrant announced on March 19, 1996, that the
Registrant will exercise a portion of its option to reduce its
investment in Walsin-CarTech Specialty Steel Corporation, a
carbon and stainless steel rod mill in Taiwan ( Walsin-CarTech ).
The Registrant and Walsin Lihwa Corporation of Taiwan entered
into a joint venture in September 1993 under which the Registrant
paid $45 million for a 19% share of Walsin-CarTech. During March
of 1996 Walsin Lihwa will purchase a portion of the Registrant s
shares of Walsin-CarTech sufficient to reduce the Registrant s
ownership to 5%. The Registrant will receive a return of $33
million of its original investment in Walsin-CarTech. The
Registrant will continue to provide know-how and technical
assistance to Walsin-CarTech.
Item 7. Financial Statement and Exhibits.
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(a) and (b) None.
(c) Exhibits:
Item 99. Press Release dated March 19, 1996.
Page 2 of 7.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Date: March 27, 1996 CARPENTER TECHNOLOGY CORPORATION
(Registrant)
/s/John R. Welty
By:____________________________
John R. Welty
Vice President
General Counsel and
Secretary
Page 3 of 7
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EXHIBIT INDEX
Sequential
Exhibit Description Page Number
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Item 99 Press release dated March 19, 1996 5
Page 4 of 7.
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Financial
Mr. John A. Schuler
Treasurer
Phone: (610)208-2165
Media
Ms. Katharine B. Marshall
Manager - Communications
IMMEDIATE RELEASE Phone: (610)208-3034
CARPENTER REDIRECTS ASIAN STRATEGY
Reading, PA (March 19, 1996) -- Carpenter Technology Corporation
(NYSE:CRS) announced today that it will exercise a portion of its put
option with Walsin Lihwa Corporation of the Republic of China (Taiwan),
lowering its ownership in their Walsin-CarTech Specialty Steel Corporation,
a carbon and stainless rod mill joint venture in Taiwan, to 5 percent from
19 percent. Walsin Lihwa will purchase the shares later this month.
Carpenter originally purchased the 19 percent interest in
September 1993 for $45 million. The reduced investment will result in a
return of $33 million to Carpenter. Carpenter will continue to provide
know-how and technical assistance to the venture.
Carpenter recently announced a $125 million capital expenditure
program in the U.S. over and above its normal capital spending plans
in order to meet the growth requirements of its customers in the U.S.
The reduction in ownership in the Taiwan mill does not reflect a change
but, rather a redirection of Carpenter's strategic efforts in Taiwan
and the Asian markets.
Simultaneously, Carpenter announced four initiatives which will
increase its involvement in Taiwan and Asia in the high technology
specialty alloy and specialty materials business segments. The rapid
expansion of these segments in Asia has led both Carpenter and Walsin
Lihwa to mutually agree to modify the nature of their cooperative efforts.
In the first initiative, Carpenter has signed a memorandum of
understanding with Walsin Lihwa Corporation to pursue business
opportunities in stainless and specialty steel distribution and processing
in Taiwan. Carpenter will be the majority shareholder. Secondly,
Carpenter will expand its sales presence in Asia by establishing a sales
office in Singapore, although its Taipei office will remain Carpenter's
Asian business development headquarters. Third, Carpenter has entered into
a letter-of-intent with Taiwan's Aero Industry Development Center to become
a preferred supplier of special alloys and ceramics for aerospace and
stationary power generation turbines. Finally, Carpenter has signed a
memorandum of understanding with the Industrial Technology Research
Institute of the Ministry of Economic Affairs to engage in joint development
activities related to the commercialization of advanced ceramics
manufacturing technology for electronic and structural markets.
(more)
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Carpenter Technology Corporation
March 19, 1996
Reading, PA Page 2
"Taiwan is a rapidly developing economic area and one of the centers
of Asian business growth," said Robert W. Cardy, Chairman, President and
Chief Executive Officer. "The initiatives which we announced today will
allow Carpenter to better focus on the high technology alloy and specialty
materials markets which are at the center of our strategic thrust.
Moreover, they will allow us to maintain our excellent working relationship
with Walsin Lihwa and the government of the Republic of China as we branch
out from Taiwan into other Asian markets."
Carpenter, headquartered in Reading, Pennsylvania, manufactures high
performance alloys and specialty steel products for automotive, aerospace,
electronics and other industries worldwide. The Company also manufactures
structural ceramic components and metal injection molded parts for specialty
applications. Carpenter has approximately 4,400 employees throughout the
world, including 2,800 in Reading.
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