CRSCarpenter Technology Corporation

Carpenter Technology melts specialty alloys for aircraft engines and medical devices.

An alloy for the hot section of an engine is developed alongside it and written into the design documents. A supplier goes through years of qualification, after which replacing it costs more than tolerating the price. Capacity for such melting is scarce worldwide, and that determines a producer's position more than any marketing.

The company deliberately shifted from volume to complexity: fewer tonnes but dearer per tonne, which shows in rising profitability. Demand comes from aircraft production, servicing the flying fleet, defence programmes and medical implants. Risks: airframe assembly schedules, nickel and cobalt prices, the energy intensity of production. The dividend is small.