Carpenter Awarded Global Eaton Contract

23 December 1999

Carpenter Awarded Global Eaton Contract

    WYOMISSING, Pa.--Dec. 22, 1999--Carpenter Technology Corp. announced today that it has signed a three-year contract to be the global supplier of high-temperature alloy valve steel to Eaton Corp.'s Engine Components Operations.
    The contract is valued at more than $40 million over three years. "Initially the contract will significantly increase Carpenter's automotive business in Europe by 30 percent," according to Andy McElwee, vice president - Sales and Marketing for Carpenter's Specialty Alloys Operations. "Longer term, we believe the contract also will increase Carpenter's sales to the automotive market in Brazil and China."
    Carpenter has been a long-time supplier of valve steel to Eaton Corp.'s Engine Components Operations in North America. In 1998, Carpenter earned Eaton's Outstanding IDEAS Achievement Award for meeting cost reduction and improvement goals.
    In addition to those areas, Eaton considers quality, delivery, manufacturing capacity, global presence and competitiveness, technical expertise and financial stability in selecting its suppliers.
    Eaton Corp. is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Eaton's sales for 1998 were $6.6 billion. Earlier this year, Eaton acquired Aeroquip-Vickers, Inc., which had sales of $2.1 billion in 1998.
    Carpenter manufactures and distributes specialty alloys, including titanium alloys, and various engineered products. The company had sales of about $1 billion in fiscal year 1999 (ended June 30, 1999), with the automotive market accounting for 15 percent of company sales.
    In recent years, Carpenter has increased its presence outside the United States and now has operations in North America, Europe, Asia and Australia.