Form 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1998
Commission File Number 1-5828
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
(Full title of the plan)
CARPENTER TECHNOLOGY CORPORATION
(Name of issuer of the securities held
pursuant to the plan)
1047 N. Park Rd.
Wyomissing, Pennsylvania 19610-1339
(Address of principal executive
office of the issuer)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Carpenter
Technology Corporation has duly caused this annual report to be signed on its
behalf by the undersigned thereunto duly authorized.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
(Name of Plan)
Date June 30, 1999 By /s/ G. Walton Cottrell
------------------- -----------------------------------
G. Walton Cottrell
Senior Vice President - Finance and
Chief Financial Officer
Financial Statements and Exhibits
(a) Financial Statements
The financial statements filed as part of this report are listed in
the Index to Financial Statements included herein.
(b) Exhibits
(1) Consent of Independent Accountants
CARPENTER TECHNOLOGY CORPORATION SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
FORM 11-K ANNUAL REPORT
Form 11-K
Pages
---------
Report of Independent Accountants 5
Financial Statements:
Statement of Net Assets Available for Plan Benefits
December 31, 1998 and 1997
- Non-Participant Directed:
Carpenter Technology Stock Fund
- Participant Directed:
Carpenter Technology Stock Fund
Fixed Income Fund, U.S. Government
Money Market Fund, Balanced Fund,
Equity Index Fund, Broad-Based Equity Fund,
International Equity Fund, Mid-Cap Equity Fund,
Intermediate Bond Fund and Participant Loans 6
Statement of Changes in Net Assets Available for Plan
Benefits for the years ended December 31, 1998 and 1997
- Non-Participant Directed:
Carpenter Technology Stock Fund
- Participant Directed:
Carpenter Technology Stock Fund
Fixed Income Fund, U.S. Government Money
Market Fund, Balanced Fund, Equity Index Fund,
Broad-Based Equity Fund, International Equity
Fund, Mid-Cap Equity Fund, Intermediate Bond
Fund and Participant Loans 7
Notes to Financial Statements 8-16
Supplemental Schedules:
Assets Held for Investment as of December 31, 1998 17
Schedule of Loans or Fixed Income Obligations as of
December 31, 1998 18-23
Reportable Transactions for the year ended
December 31, 1998 24
Report of Independent Accountants
To the Participants and Administrator of the Savings Plan of Carpenter
Technology Corporation:
In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available for
benefits present fairly, in all material respects, the net assets available
for benefits of the Savings Plan of Carpenter Technology Corporation at
December 31, 1998 and 1997, and the changes in net assets available for the
years then ended, in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the plan's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for the
opinion expressed above.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment, loans or fixed income obligations and reportable
transactions are presented for purposes of additional analysis and are not a
required part of the basic financial statements but are additional information
required by ERISA. These supplemental schedules are the responsibility of the
plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
April 9, 1999
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
as of December 31, 1998 and 1999
(dollars in thousands)
ASSETS 1998 1997
-------- --------
Investments at fair value (Note 3):
Commingled Trust Funds:
Short-term Investment Fund $ 10,095 $ 5,616
Fixed Income Fund 55,751 58,185
U.S. Government Money Market Fund 5,899 5,335
Balanced Fund 9,100 8,468
Equity Index Fund 31,698 23,673
Broad-based Equity Fund 108,777 97,459
International Equity Fund 1,823 1,374
Mid-Cap Equity Fund 5,050 3,013
Intermediate Bond Fund 1,597 1,394
Carpenter Technology Stock Fund 44,454 50,071
Participant Loans 12,106 11,208
-------- --------
Total investments 286,350 265,796
Receivables:
Investment income receivable 381 381
Miscellaneous receivables 64 23
-------- --------
Total receivables 445 404
-------- --------
Total assets 286,795 266,200
-------- --------
LIABILITIES
Accrued administration expenses 48 862
-------- --------
Total liabilities 48 862
-------- --------
Net assets available for benefits $286,747 $265,338
======== ========
The accompanying notes are an integral part of these financial statements.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
for the years ended December 31, 1998 and 1997
(dollars in thousands)
1998 1997
-------- --------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $ 11,127 $ 41,143
Interest 5,580 5,829
Dividends 2,908 2,550
-------- --------
19,615 49,522
-------- --------
Contributions:
Salary deferral 11,774 11,056
Participant 2,663 2,525
Rollover 522 367
Company basic 5,107 5,134
-------- --------
20,066 19,082
-------- --------
Total additions 39,681 68,604
-------- --------
Deductions from net assets attributed to:
Benefits paid to participants 17,461 12,624
Administrative expenses 811 985
-------- --------
Total deductions 18,272 13,609
------- --------
Net increase 21,409 54,995
Net assets available for benefits:
Beginning of year 265,338 210,343
-------- --------
End of year $286,747 $265,338
======== ========
The accompanying notes are an integral part of these financial statements.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan:
--------------------
The following description of the Savings Plan of Carpenter Technology
Corporation (the Plan) provides only general information. A more
comprehensive description of the Plan's provisions can be found in the
Plan document, which is available to participants upon request from
Carpenter Technology Corporation or any participating affiliate
(collectively referred to as the "Company").
General:
--------
The Plan is a profit-sharing and stock bonus plan which covers
substantially all domestic employees of the Company in core Specialty
Alloys Operations and Carpenter Specialty Wire Products, and all
domestic employees of Carpenter Special Products Corporation. It is
subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA), as amended.
Contributions:
--------------
Each year, participants may contribute up to 17 percent of pretax
annual compensation (known as salary deferral contributions), and up
to 17 percent of after-tax annual compensation (known as participant
contributions), as defined in the Plan. Effective January 6, 1997,
participants may also contribute amounts representing distributions
from other qualified plans (known as rollover contributions). The
Company contributes an amount equal to three percent of each employee's
base pay, excluding profit sharing payments (known as company basic
contributions). Contributions are subject to certain limitations.
All contributions are funded with an independent trustee.
Participant's Accounts:
-----------------------
Four accounts are maintained for each participant which are credited
with contributions and Plan net earnings on funds invested within the
respective accounts, as follows:
- Long-term savings account - credited with company basic and
salary deferral contributions, which are participant directed;
- Thrift account - credited with participant contributions,
which are participant directed;
- Profit Sharing Account - credited with Company contributions
prior to 1988, which were non-participant directed. No further
contributions will be made to this account.
- Rollover Account - credited with rollover contributions, which
are participant directed.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
1. Description of Plan, continued:
-------------------------------
Vesting:
--------
All contributions and Plan earnings thereon are 100 percent vested
and nonforfeitable.
Investment Funds:
-----------------
The Plan maintains nine investment funds. The International Equity
Fund, Mid-Cap Equity Fund, and Intermediate Bond Fund were added to
the Plan effective August 4, 1997. Each participant may designate
separately the investment fund or funds in which the Long-Term Savings
Account and Thrift Account are to be invested. The Profit Sharing
Account may be invested only in the Carpenter Technology Stock Fund.
A brief description of each investment fund is as follows:
- Fixed Income Fund (Selection Fund for Employee Trusts of State
Street Bank and Trust Company) - a fund invested primarily in
guaranteed investment contracts, or similar insurance company
or bank investments.
- U.S. Government Money Market Fund (Short-term Fund for
Government Securities of State Street Bank and Trust Company)
- a fund invested in U.S. Government short-term money market
obligations or securities.
- Balanced Fund (American Balanced Fund) - a fund invested in
a portfolio of securities including common and preferred
stocks, corporate bonds, U.S. government securities, cash
or cash equivalents.
- Equity Index Fund (BZW Barclays' Equity Index Fund) - a fund
invested primarily in common stocks of virtually all issues
in the Standard and Poor's 500 Index.
- Broad-based Equity Fund (Matrix Synthesis Fund for Employee
Trusts of State Street Bank and Trust Company) - a fund
invested in common stocks and other equity securities.
- Carpenter Technology Stock Fund - a fund invested primarily
in Company common stock.
- International Equity Fund (Euro-Pacific Growth Fund) - a
fund invested in securities outside the U.S.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
1. Description of Plan, continued:
-------------------------------
Investment Funds, continued:
----------------------------
- Mid-Cap Equity Fund (Putnam Vista Fund) - a fund invested
primarily in the stocks of medium-sized companies.
- Intermediate Bond Fund (Putnam Income Fund) - a fund invested
primarily in fixed income securities, such as government
debentures and corporate bonds.
Participant Loans:
------------------
Loans are available from the long-term savings account to participants
who are active employees of the Company except for those who have not
demonstrated an ability to repay the loan. Participants are subject
to certain restrictions on their number of loans, amount and term of
repayment. Interest is charged at the prime rate for commercial
lenders at the time the loan is initiated, plus one percent. Loan
repayments are required monthly, and payment in full is required at
the time of the participant's separation.
Benefits Paid to Participants:
------------------------------
Benefits paid to participants include participant distributions,
withdrawals and loan settlements. Participants are entitled to a lump
sum distribution upon separation from service, occurrence of a
permanent disability or after attainment of age 59-1/2. Upon
separation, a participant may elect to defer such distribution,
provided the account balance is at least $5,000 ($3,500 prior to
January 1, 1998). The distribution of benefits to all separated
participants must begin no later than the later of December 31 of the
year in which the participant retires or attains age 70-1/2.
Upon attainment of age 59-1/2, participants may make withdrawals from
any account without limitation. Prior to age 59-1/2, the following
order applies: 1) Thrift, profit sharing and rollover accounts,
balance available at any time. 2) Long-term savings account, subject
to certain hardship restrictions. Benefits paid to participants are
in cash, except that distribution of accounts which consist of
investments in the Carpenter Technology Stock Fund shall be made in
shares of the Company's common stock or cash, at the participant's
option.
Administrative Expenses:
------------------------
All fees directly related to the Plan are paid by the Plan.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
1. Description of Plan, continued:
-------------------------------
Plan Termination:
-----------------
Although it has not expressed an intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA and any
contractual obligations. In the event of termination or partial
termination of the Plan, or discontinuance of contributions by the
Company, the rights of all participants to amounts credited to their
accounts shall be nonforfeitable.
2. Summary of Significant Accounting Policies:
-------------------------------------------
A. The financial statements of the Plan are prepared under the
accrual method of accounting.
B. The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets, liabilities, and changes therein, and
disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
C. The investment in common stock of Carpenter Technology
Corporation is stated at fair value based on the last reported
sales price as quoted on the New York Stock Exchange. The
investment in the other trust funds are stated at their fair
value, based on the current market values of the underlying
assets of the funds, or as determined by the trustee.
Purchases and sales of investments are reflected on a trade-
date basis. Gain or loss on sales of investments is based on
average cost. Dividend income is recorded on the ex-dividend
date. Income from other investments is recorded as earned on
an accrual basis.
D. Benefits are recorded when paid.
E. The net appreciation (depreciation) in the fair value of
investments in the statement of changes in net assets available
for benefits consists of realized gains or losses and
unrealized appreciation (depreciation) on investments.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
2. Summary of Significant Accounting Policies, continued:
------------------------------------------------------
F. Investments are exposed to various risks, such as interest
rate, market and credit risks. Due to the level of risk
associated with certain investments and the level of
uncertainty related to changes in the value of investments,
it is reasonably possible that changes in these risks in the
near term could materially affect the amounts reported in the
statement of net assets available for benefits and the
statement of changes in net assets available for benefits.
G. Certain reclassifications of prior years' amounts have been
made to conform with the current year's presentation.
3. Investments:
------------
Commingled trust fund investments represent units of participation
in funds as follows:
Units of
Underlying Investments
at December 31
(units in thousands)
Title of Issue 1998 1997
-------------- ------ ------
Short-Term Investment Fund 10,095 5,616
Fixed Income Fund 55,751 58,185
U.S. Government Money Market Fund 5,899 5,335
Balanced Fund 577 540
Equity Index Fund 943 906
Broad-Based Equity Fund 674 741
International Equity Fund 64 53
Mid-Cap Equity Fund 386 254
Intermediate Bond Fund 231 196
The Plan includes 1,309,886 shares of Carpenter Technology common
stock at December 31, 1998 and 1,041,786 shares of Carpenter
Technology common stock at December 31, 1997.
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
4. Tax Status:
-----------
The Internal Revenue Service has determined and informed the Company
by letter dated June 7, 1995, that the Plan and related trust are
designed in accordance with applicable sections of the Internal
Revenue Code (IRC). The Plan has been amended since receiving the
determination letter. However, the Plan administrator and the Plan's
tax counsel believe that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
Participants are not subject to federal income tax on contributions
by the Company, including salary deferral contributions, made to their
long-term savings account or their profit-sharing account until such
amounts are withdrawn or distributed. The earnings and capital
appreciation while the funds are held in trust will be exempt from
taxation until withdrawn or distributed. Upon withdrawal or
distribution, there will be varying tax consequences to the
participants.
5. Reconciliation of Financial Statements to Form 5500:
----------------------------------------------------
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
Yr Ended Yr Ended
12/31/98 12/31/97
---------- ---------
(dollars in thousands)
Net assets available for benefits per the
financial statements $286,747 $265,338
Amounts allocated to withdrawing participants (342) (114)
---------- ---------
Net assets available for benefits per the
Form 5500 $286,405 $265,224
========== =========
SAVINGS PLAN OF
CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
5. Reconciliation of Financial Statements to Form 5500, continued:
---------------------------------------------------------------
The following is a reconciliation of benefits paid to participants
per the financial statements to the Form 5500:
Yr Ended Yr Ended
12/31/98 12/31/97
-------- --------
(dollars in thousands)
Benefits paid to participants per the financial
statements $17,461 $12,624
Add: Amounts allocated to withdrawing
participants at December 31, 1998 342 114
Less: Amounts allocated to withdrawing
participants at December 31, 1997 (114) (43)
-------- --------
Benefits paid to participants per the Form 5500 $17,689 $12,695
======== ========
Amounts allocated to withdrawing participants are recorded on the
Form 5500 for benefit claims that have been processed and approved
for payment prior to December 31 but not yet paid as of that date.
SAVINGS PLAN OF CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
6. Allocation of Changes in Assets Available for Benefits to Investment Funds:
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollars in thousands)
Non-part. Non-part.
Directed < - - - - - - -P a r t i c i p a n t D i r e c t e d - - - - - - - - - - - - Directed
-------------------------------------------------------------------------------------------------------------
Carp Carp US Govt Inter
Tech Tech Fixed Money B.B. Equity Inter- MidCap Med. Part. Hold
Year Ended 12/31/98 Stk. Stk. Income Market Equity Balanced Index nat'l Equity Bond Loans Acct TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $(1,227) $(14,680) $ - $ - $ 20,028 $ 24 $ 6,708 $ 103 $ 219 $ (48) $ - $ - $ 11,127
Interest 6 63 4,178 312 7 1 2 1,008 3 5,580
Dividends 115 1,354 873 107 360 99 2,908
- -----------------------------------------------------------------------------------------------------------------------------------
(1,106) (13,263) 4,178 312 20,035 898 6,710 210 579 51 1,008 3 19,615
- -----------------------------------------------------------------------------------------------------------------------------------
Contributions:
Company basic 1,321 964 129 1,747 181 573 54 117 21 5,107
Salary deferral 1,719 2,152 208 4,773 545 1,751 189 372 65 11,774
Participant 322 767 90 871 142 367 22 63 19 2,663
Rollover 76 34 38 154 30 129 21 32 8 522
- -----------------------------------------------------------------------------------------------------------------------------------
- 3,438 3,917 465 7,545 898 2,820 286 584 113 - - 20,066
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions (1,106) (9,825) 8,095 777 27,580 1,796 9,530 496 1,163 164 1,008 3 39,681
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions from net
assets attributed to:
Benefits paid to
participants 371 2,543 6,926 501 5,746 147 965 11 58 14 431 (252) 17,461
Administrative expenses 9 102 211 11 367 24 68 5 10 4 811
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 380 2,645 7,137 512 6,113 171 1,033 16 68 18 431 (252) 18,272
- -----------------------------------------------------------------------------------------------------------------------------------
Loans, net of
repayments" (286) 148 (14) (325) 63 10 30 22 (33) 385 -
Interfund transfers 8,557 1,231 509 (9,553) (1,053) (618) (62) 921 68 -
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,486) (4,199) 2,337 760 11,589 635 7,889 448 2,038 181 962 255 21,409
Net assets available
for benefits:
Beginning of year 4,447 46,652 62,280 5,373 97,241 8,490 23,748 1,381 3,002 1,419 11,207 98 265,338
- -----------------------------------------------------------------------------------------------------------------------------------
End of year $2,961 $42,453 $64,617 $6,133 $108,830 $9,125 $31,637 $1,829 $5,040 $1,600 $12,169 $ 353 $286,747
===================================================================================================================================
</TABLE>
SAVINGS PLAN OF CARPENTER TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
6. Allocation of Changes in Assets Available for Benefits to Investment Funds:
---------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollars in thousands)
Non-part. Non-part.
Directed < - - - - - - -P a r t i c i p a n t D i r e c t e d - - - - - - - - - - - - Directed
-------------------------------------------------------------------------------------------------------------
Carp Carp US Govt Inter
Tech Tech Fixed Money B.B. Equity Inter- MidCap Med. Part. Hold
Year Ended 12/31/97 Stk. Stk. Income Market Equity Balanced Index nat'l Equity Bond Loans Acct TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $1,055 $10,460 $ - $ - $24,393 $ 405 $ 5,137 $ (155) $ (152) $ - $ - $ - $ 41,143
Interest 6 60 4,569 320 7 1 1 872 (7) 5,829
Dividends 122 1,232 880 71 220 25 2,550
- ------------------------------------------------------------------------------------------------------------------------------------
1,183 11,752 4,569 320 24,400 1,286 5,138 (84) 68 25 872 (7) 49,522
- ------------------------------------------------------------------------------------------------------------------------------------
Contributions:
Company basic 1,370 1,208 162 1,670 172 498 19 30 5 5,134
Salary deferral 1,655 2,589 247 4,387 509 1,507 62 83 17 11,056
Participant 271 873 101 786 130 310 18 28 8 2,525
Rollover 59 5 7 153 23 63 11 46 367
- ------------------------------------------------------------------------------------------------------------------------------------
- 3,355 4,675 517 6,996 834 2,378 110 187 30 - - 19,082
- ------------------------------------------------------------------------------------------------------------------------------------
Total additions 1,183 15,107 9,244 837 31,396 2,120 7,516 26 255 55 872 (7) 68,604
- ------------------------------------------------------------------------------------------------------------------------------------
Deductions from net
assets attributed to:
Benefits paid to
participants 302 1,803 5,913 776 3,142 127 491 5 12 3 126 (76) 12,624
Administrative expenses 13 130 262 21 463 20 72 1 2 1 985
- ------------------------------------------------------------------------------------------------------------------------------------
Total deductions 315 1,933 6,175 797 3,605 147 563 6 14 4 126 (76) 13,609
- ------------------------------------------------------------------------------------------------------------------------------------
Loans, net of repayments (300) (85) (24) 59 23 32 1 294 -
Interfund transfers (3,489)(11,291) (832) 4,867 862 4,394 1,361 2,761 1,367 -
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 868 9,385 (8,307) (816) 32,717 2,858 11,379 1,381 3,002 1,419 1,040 69 54,995
Net assets available
for benefits:
Beginning of year 3,579 37,267 70,587 6,189 64,524 5,632 12,369 10,167 29 210,343
- ------------------------------------------------------------------------------------------------------------------------------------
End of year $4,447 $46,652 $62,280 $5,373 $97,241 $8,490 $23,748 $1,381 $3,002 $1,419 $11,207 $ 98 $265,338
====================================================================================================================================
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) Description of investment,
including (D) (E)
Identity of issue, borrower, maturity date, rate of
lessor or similar party interest, collateral, Current
par or maturity value Cost Value
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Selection Fund Common / Collective Trust $55,750,730 $55,750,730
- --------------------------------------------------------------------------------------------
* Carp. Tech. Corp.
Common Stock Corporate Stocks - Common $45,655,686 $44,454,256
- --------------------------------------------------------------------------------------------
Barclays Equity
Index Fund Registered Investment Company $20,420,147 $31,698,385
- --------------------------------------------------------------------------------------------
Putnam Income Fund Registered Investment Company $1,630,771 $1,596,604
- --------------------------------------------------------------------------------------------
Putnam Vista Fund Registered Investment Company $4,910,207 $5,049,667
- --------------------------------------------------------------------------------------------
Euro Pac Growth Fund Registered Investment Company $1,833,086 $1,822,688
- --------------------------------------------------------------------------------------------
Participant Loans Loans to Participants -
interest rate range $0 $12,105,460
6.74% to 11.5%;
no loans due past 12/1/08
- --------------------------------------------------------------------------------------------
American Balanced Fund Registered Investment Company $8,676,401 $9,100,446
- --------------------------------------------------------------------------------------------
Matrix Stock Fund Registered Investment Company $52,431,119 $108,776,591
- --------------------------------------------------------------------------------------------
* State Street Bank
and Trust Company
Government Short Term
Investment Fund Interest Bearing Cash $5,899,115 $5,899,115
- --------------------------------------------------------------------------------------------
* State Street Bank
and Trust Company
Short Term Investment
Fund Interest Bearing Cash $10,095,000 $10,095,000
- --------------------------------------------------------------------------------------------
* Party-in-Interest
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest year end at year
rate) end
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BRANTLEY, MARILYN $1,301 $346.86 $71.46 $976.41 1998-03-31 2000-05-01 9.50 $44.78 $0.00
PO Box 439
Elloree SC 29047
- -----------------------------------------------------------------------------------------------------------------------------------
FALVEY, ROBERT $11,652 $1,598.66 $641.04 $7,622.61 1996-08-28 2001-11-01 9.25 $184.54 $8.74
614 Grill Ave
Shillington PA 19607
- ----------------------------------------------------------------------------------------------------------------------------------
RAMSEY, MARTIN G. $5,820 $410.34 $8.70 $99.05 1993-03-31 1998-11-01 7.74 $99.05 $0.63
919 Carsonia Ave
Reading PA 19606
- -----------------------------------------------------------------------------------------------------------------------------------
MURPHY, RONALD J. $5,410 $737.51 $164.41 $2,274.21 1995-05-11 2000-08-01 9.16 $191.48 $33.98
134 Brier City Road
Pottsville PA 17901
- -----------------------------------------------------------------------------------------------------------------------------------
MURPHY, RONALD J. $8,694 $988.95 $471.85 $6,889.44 1997-04-01 2002-07-01 9.50 $257.12 $108.06
134 Brier City Road
Pottsville PA 17901
- -----------------------------------------------------------------------------------------------------------------------------------
ALBRECHT, LISA M. $13,000 $65.31 $102.91 $12,934.69 1998-09-24 2008-10-01 9.50 $65.83 $102.39
3044 Linda Lane
Sinking Spring PA 19608
- -----------------------------------------------------------------------------------------------------------------------------------
CHAPMAN, RICHARD H. $11,000 $57.09 $173.93 $10,942.91 1998-07-02 2003-10-01 9.50 $260.82 $85.71
RD#1 911 Sunbury Rd
Pottsville PA 17901
- -----------------------------------------------------------------------------------------------------------------------------------
CHAPMAN, RICHARD H. $7,500 $1,023.77 $444.51 $5,239.16 1996-11-12 2002-02-01 9.25 $195.12 $39.78
RD#1 911 Sunbury Rd
Pottsville PA 17901
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest year end at year
rate) end
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DRUPP JR, EARL W. $7,000 $0.00 $0.00 $9,000.00 1998-08-25 2003-10-01 9.50 $183.94 $110.10
RR4 Box 9
Birdsboro PA 19508
- -----------------------------------------------------------------------------------------------------------------------------------
ZEIBER, RALPH G. $7,000 $1,226.86 $260.93 $2,235.45 1995-08-10 1999-10-01 9.25 $123.42 $0.00
610 El Hateo Drive
Temple PA 19560
- -----------------------------------------------------------------------------------------------------------------------------------
PORR, TIMOTHY D. $19,500 $0.00 $0.00 $19,500.00 1998-10-19 2002-11-01 9.50 $335.53 $154.37
534 E Linden St
Fleetwood PA 19522
- -----------------------------------------------------------------------------------------------------------------------------------
PORR, TIMOTHY D. $7,800 $1,766.66 $252.07 $2,300.33 1995-10-10 1999-12-01 8.50 $230.22 $15.91
534 E Linden St
Fleetwood PA 19522
- -----------------------------------------------------------------------------------------------------------------------------------
ADAM, BRIAN K. $9,222 $270.36 $57.92 $9,222.00 1998-09-25 2003-10-01 9.50 $242.31 $145.05
440 Stone Edge Circle
Lenhartsville PA 19534
- -----------------------------------------------------------------------------------------------------------------------------------
BUNN, DAVID R. $13,000 $527.32 $226.73 $8,880.14 1996-03-26 2002-01-01 7.68 $286.10 $56.31
932 Hamilton Pl
Reading PA 19610
- ----------------------------------------------------------------------------------------------------------------------------------
BALTHASER, CHRISTOPHER $1,000 $406.25 $32.20 $155.85 1996-10-03 1999-03-31 9.25 $38.65 $1.20
102 Kohler Rd
Kutztown PA 19530
- -----------------------------------------------------------------------------------------------------------------------------------
SCHWARTZ, BRIAN P. $25,000 $0.00 $50.00 $25,000.00 1998-06-15 2003-10-01 9.50 $656.87 $343.23
2030 Butter Lane
Reading PA 19606
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest) year end at year
rate) end
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HOFFMAN, FRANK M. $14,510 $11.96 $76.53 $10,767.45 1994-10-20 2005-05-01 8.12 $208.94 $145.00
2435 Running Bear Cove
Auburn PA 17922
- -----------------------------------------------------------------------------------------------------------------------------------
GILMORE, CHARLES P. $2,200 $1,232.14 $65.14 $967.86 1998-06-01 1999-03-01 9.50 $162.16 $0.00
1312 Buttonwood St
Reading PA 19604
- ----------------------------------------------------------------------------------------------------------------------------------
SCHLOUCH, JEFFREY L. $4,000 $1,804.16 $119.44 $453.63 1996-12-30 1999-01-01 9.25 $272.01 $2.79
RR4 Box 4356
Mohnton PA 19540
- -----------------------------------------------------------------------------------------------------------------------------------
HUFFORD, RICHARD A. $5,000 $930.17 $322.63 $3,349.48 1996-11-14 2001-12-31 9.25 $78.59 $25.81
484 N End Rd
Mohrsville PA 19541
- ----------------------------------------------------------------------------------------------------------------------------------
TORRES, ROBERT L. $4,200 $61.54 $31.55 $3,416.01 1995-11-30 2002-10-01 8.50 $61.98 $17.27
1109 Scott St
Reading PA 19611
- ----------------------------------------------------------------------------------------------------------------------------------
TORRES, ROBERT L. $2,000 $78.04 $2.87 $196.30 1994-04-20 1999-03-01 7.07 $42.73 $0.00
1109 Scott St
Reading PA 19611
- -----------------------------------------------------------------------------------------------------------------------------------
CLEMAS JR, JOSEPH E. $1,500 $668.06 $89.56 $659.55 1997-08-18 1999-09-01 9.50 $659.55 $5.21
855 Jacks Lane
- -----------------------------------------------------------------------------------------------------------------------------------
ALBRECHT, MARK A. $14,000 $70.33 $110.83 $13,929.67 1998-09-24 2008-10-01 9.50 $70.89 $110.27
3044 Linda Lane
Sinking Spring PA 19608
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest year end at year
rate) end
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
KEHR, JOHN E. $1,000 $160.28 $42.52 $549.37 1996-03-05 2001-04-01 8.00 $33.35 7.21
134 N 4th St
Reading, Pa 19611
- -----------------------------------------------------------------------------------------------------------------------------------
SHALTERS, JULIE P. $1,000 $98.45 $44.77 $403.68 1991-08-31 2001-09-01 10.74 $16.89 $3.55
4230 Hunters Run Blvd
Reading, Pa 19606
- -----------------------------------------------------------------------------------------------------------------------------------
MOHOSKI, MARTIN $15,000 $997.13 $578.07 $14,002.87 1998-05-27 2003-06-01 9.50 $204.18 $110.84
632 Old State Rd
Oley PA 19547
- -----------------------------------------------------------------------------------------------------------------------------------
STEVENSON, JEFFREY L. $18,000 $3,018.59 $1,115.65 $11,490.54 1996-09-27 2001-10-31 9.25 $287.27 $88.57
102 New Holland Ave
Shillington PA 19607
- -----------------------------------------------------------------------------------------------------------------------------------
TAIT, RANDOLPH M. $5,000 $961.88 $180.14 $1,650.61 1995-03-07 2000-04-01 9.01 $91.43 $12.39
2385 New Holland Rd
Reading PA 19607
- -----------------------------------------------------------------------------------------------------------------------------------
SWEITZER, JAMES L. $10,000 $1,533.64 $776.58 $8,070.67 1997-08-29 2002-09-01 9.50 $146.13 $63.89
15 Telford Ave
West Lawn PA 19609
- -----------------------------------------------------------------------------------------------------------------------------------
PICCONE, DAVID N. $10,708 $1,322.58 $751.52 $9,104.05 1997-09-29 2002-11-01 9.50 $306.85 $92.93
212 Carriage Dr
Wernersville PA 19565
- -----------------------------------------------------------------------------------------------------------------------------------
PICCONE, DAVID N. $4,950 $783.74 $196.50 $2,137.12 1995-06-27 2000-09-01 9.25 $140.66 $16.06
212 Carriage Dr
Wernersville PA 19565
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest year end at year
rate) end
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SUDLER JR, EDWARD T. $15,599 $1,515.22 $941.93 $14,083.78 1998-03-13 2003-04-01 9.50 $163.79 $0.00
337 Hollenbach St
Reading PA 19601
- ----------------------------------------------------------------------------------------------------------------------------------
SUDLER JR, EDWARD T. $4,000 $825.40 $104.72 $895.47 1994-09-19 1999-11-01 7.88 $40.44 $0.00
337 Hollenbach St
Reading PA 19601
- -----------------------------------------------------------------------------------------------------------------------------------
WILLIAMS, BOBBY D. $3,000 $341.66 $52.74 $2,079.17 1997-06-27 2000-03-01 9.50 $243.55 $31.95
RR 3 Box 3804
Mohnton PA 19540
- -----------------------------------------------------------------------------------------------------------------------------------
WILLIAMS, BOBBY D. $5,000 $224.12 $86.88 $3,658.89 1996-07-08 2002-04-01 9.25 $152.99 $55.81
RR 3 Box 3804
Mohnton PA 19540
- -----------------------------------------------------------------------------------------------------------------------------------
HARMON, ROGER $1,900 $160.66 $27.72 $753.38 1996-10-09 1999-07-01 9.25 $163.06 $10.98
RR 3 Box 1142
Saint Matthews SC 29135
- ----------------------------------------------------------------------------------------------------------------------------------
HARMON, ROGER $853 $75.27 $18.26 $579.36 1997-05-05 2000-02-01 9.50 $69.45 $8.99
RR 3 Box 1142
Saint Matthews SC 29135
- -----------------------------------------------------------------------------------------------------------------------------------
PORTER, SAVANA W. $2,941 $315.63 $143.41 $2,941.00 1998-09-25 2003-10-01 9.50 $77.29 $46.25
5910 Fern Hollow Ct
Katy TX 77449
- ----------------------------------------------------------------------------------------------------------------------------------
INOUYE, JUNJI J. $10,000 $1,869.90 $489.44 $4,738.27 1995-11-16 2001-01-01 8.50 $102.60 $0.00
5707 Robusto Rd
San Diego CA 92124
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(b) - Schedule of Loans or Fixed Income Obligations
December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (E) (F) (G) (H) (I)
Identity and Original Principal Interest Unpaid Description of loan Principal Interest
Address of amount received received balance overdue at overdue
Obligor of loan during year during year @ EOY (origin date-maturity date-interest year end at year
rate) end
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HIGGS, NATHANIEL $4,120 $1,018.29 $271.66 $2,008.98 1995-09-06 2001-01-01 8.50 $141.10 $27.96
1522 Mary Lou Street
San Diego CA 92102
- ----------------------------------------------------------------------------------------------------------------------------------
SHIPP, CHRISTOPHER $22,000 $56.86 $174.16 $21,943.14 1998-10-26 2003-11-01 9.50 $231.02 $0.00
12405 Royal Rd
El Cajon CA 92021
- -----------------------------------------------------------------------------------------------------------------------------------
GARCIA, MIGUEL A. $13,000 $946.31 $495.95 $7,210.53 1993-03-31 2003-06-01 7.74 $148.71 $46.25
10145 Ranchitos Pl
Lakeside CA 92040
- ----------------------------------------------------------------------------------------------------------------------------------
GARCIA, MIGUEL A. $2,900 $445.11 $170.01 $2,454.89 1998-01-12 2001-08-01 9.50 $86.82 $19.26
10145 Ranchitos Pl
Lakeside CA 92040
- ----------------------------------------------------------------------------------------------------------------------------------
ROSADO SR, LUIS A. $4,732 $438.87 $214.97 $4,293.13 1998-03-27 2002-05-01 9.50 $170.47 $67.29
223 Linden St
Reading PA 19604
- ----------------------------------------------------------------------------------------------------------------------------------
ROSADO SR, LUIS A. $2,000 $275.96 $120.76 $1,422.78 1996-12-24 2002-02-01 9.25 $61.84 $21.68
223 Linden St
Reading PA 19604
- -----------------------------------------------------------------------------------------------------------------------------------
HICKS, COURTNEY D. $500 $22.15 $3.95 $477.85 1998-10-29 1999-09-01 9.50 $26.10 $0.00
3628 Stockman St
National City CA 91950
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Savings Plan of Carpenter Technology Corporation
Line 27(d) - Schedule of Reportable Transactions
for the year ended December 31, 1998
<TABLE>
<CAPTION>
(A) (B) (C) (D) (F) (G) (H) (I)
Description of Asset Purchase Selling Expense Cost of Current Value Net gain
Identity of Party (include interest rate and Price Price Incurred w/ Asset of Asset on or (loss)
Involved maturity in case of a loan Transaction Transaction
Date
<S> <C> <C> <C> <C> <C> <C> <C>
State Street Bank
and Trust
Company Government
Short Term
Investment Fund Interest Bearing Cash $30,239,322 $- $- $30,239,322 $30,239,322 $-
State Street Bank
and Trust
Company Government
Short Term
Investment Fund Interest Bearing Cash $- $25,556,880 $- $25,556,880 $25,556,880 $-
Carpenter Technology
Corporation
Common Stock Corporate Stocks - Common $- $21,328,289 $- $20,226,276 $21,328,289 $1,102,013
State Street Bank
and Trust
Company Short Term
Investment Fund Interest Bearing Cash $47,964,416 $- $- $47,964,416 $47,964,416 $-
State Street Bank
and Trust
Company Short Term
Investment Fund Interest Bearing Cash $- $47,748,132 $- $47,748,132 $47,748,132 $-
Selection Fund Common / Collective Trust $9,155,475 $- $- $9,155,475 $9,155,475 $-
Selection Fund Common / Collective Trust $- $11,589,696 $- $11,589,696 $11,589,696 $-
</TABLE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement of
Carpenter Technology Corporation on Form S-8 (number 2-83780) of our report
dated April 9, 1999 on our audits of the financial statements of the Savings
Plan of Carpenter Technology Corporation as of December 31, 1998 and 1997
and for the two years ended December 31, 1998 and 1997, which report is
included in this Annual Report on Form 11-K.
PRICEWATERHOUSECOOPERS
June 30, 1999
