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Hasn't -- rising commodity and energy prices keep -- -- company from expanding.
To compete in the global marketplace.
Through hundreds of millions of dollars of investment.
Carpenter technologies has outlasted his competitors.
Any -- still in disarray and is now finding surprising strength as the economy weakens joining us now CEO carpenter technology corporation and Stephens.
What type was still products does your company -- that makes it different than some of the others.
That company was founded on solving problems so those types of products that we manufacture are very difficult to manufacture.
And they are very me see.
So it's not like a large -- know if you took -- still not like new core.
One week's production of new core.
Is the entire volume for the -- -- -- -- broke out on the -- as a mini mill so to speak right what industries are you targeting.
-- anytime you think of an industry that requires something that's got to perform in high temperature.
Landing gear you can just imagine -- plane coming down requires huge.
Strength and metal properties.
Medical body and -- energy and directional draw -- line.
Industrial valves and fittings from food food and chemical from -- that's -- kind of all.
Fantastic industries by the way -- How have you been able to avoid.
Passing on commodity cost you customers -- I think the thing is really important as a CEO.
For me you know leading carpenter.
Is constantly being aware of what's your business model list.
When I look at the business model for us particularly in the period of volatility.
A commodity prices increasing and decreasing how do you recover those costs and deliver the return to the shareholders for us.
About 40% of our business is and long term contract.
About 60% is transactional.
On the learned long term part we work with the customers in the contract.
And and we will said and point a particular time.
When the customer wants to take out.
Though volume of the product.
And then we take out -- heads.
On the customers benefit for the commodity so you actually play the commodities market as just as a hedge against some of this country we don't quiet and it's for the benefit of the customer we take out the heads.
-- on the transaction part of the business what is in our business model is we surcharge.
So if you take commodities like nickel chromium manganese -- -- an even energy.
We will surcharge.
Customers buying in September average price of those commodities in August.
Let's talk about the wave of consolidation in -- industry.
You've got the foreign giants -- -- and others who are scooping up a whole lot of companies you obviously have to consider where you wanna be here.
Would you be willing to be acquired or are you actually gonna go out to look for acquisitions itself.
Carpenter has been an independent company for a 119.
-- -- nineteen years.
Found -- on innovation.
We will stay independent based on -- it it innovation.
And a business model that produces products to solve problems these aren't easy prop.
You know products to produce and processed some of the products that we supplied to air space requires three melting.
Various conditioning how.
So that makes like it sounds like a major company attractive to potential -- is is very complex.
It takes a lot of work a lot of -- -- And it's not a company that can run huge volumes this is not a volume industry.
Takes a lot of focus on research technology.
And that the manufacturing process.
You know and 2000 your company made a huge investment 500 million dollars the timing was perfect.
Are you making large investments now.
For future business -- a great question.
-- CEO of the company carpenter for two years and one of the first things that the -- did was looked at a market.
I talked about the markets we participate and they're growing -- growth business based on that.
We had approved by the board -- 150 million dollars.
Investing in our criminal capacity so we put on a 40%.
Capacity increase which comes on line early next year.
At -- carpet -- excellent graduate.
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