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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>/in/edgar/work/20000627/0000017843-00-000015/0000017843-00-000015.txt : 20000920
<SEC-HEADER>0000017843-00-000015.hdr.sgml : 20000920
ACCESSION NUMBER:		0000017843-00-000015
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19991231
FILED AS OF DATE:		20000627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CARPENTER TECHNOLOGY CORP
		CENTRAL INDEX KEY:			0000017843
		STANDARD INDUSTRIAL CLASSIFICATION:	 [3312
]		IRS NUMBER:				230458500
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		11-K
			SEC ACT:		
			SEC FILE NUMBER:	001-05828
			FILM NUMBER:		661887
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		1047 N PARK ROAD
				CITY:			WYOMISSING
				STATE:			PA
				ZIP:			19610-1339
				BUSINESS PHONE:		6102082000
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		1047 N PARK ROAD
					CITY:			WYOMISSING
					STATE:			PA
					ZIP:			19610
</MAIL-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>0001.htm
<TEXT>

<HTML>

<head>
<TITLE>Talley Metals</TITLE>
</head>

<body>

<p>&nbsp;</p>
<div align="center"><center>

<pre><font face="Arial"><strong>Form 11-K</strong></font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial"><strong>SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
</strong>


</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">ANNUAL REPORT</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">For the year ended December 31, 1999
</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">Commission File Number 1-5828
</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">RETIREMENT PLAN OF
TALLEY METALS TECHNOLOGY, INC.
(Full title of the plan)
</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">CARPENTER TECHNOLOGY CORPORATION
(Name of issuer of the securities held
pursuant to the plan)


</font></pre>
</center></div><div align="center"><center>

<pre><font face="Arial">1047 N. Park Rd.
Wyomissing, Pennsylvania  19610-1339
(Address of principal executive
office of the issuer)</font></pre>
</center></div>

<p align="left">&nbsp;</p>
<div align="center"><center>

<pre><font face="Arial"><strong>SIGNATURES</strong></font></pre>
</center></div>

<pre><font face="Arial">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.
</font></pre>

<pre><font face="Arial">			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RETIREMENT PLAN OF
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TALLEY METALS TECHNOLOGY, INC.
			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Name of Plan)


</font></pre>

<pre><font face="Arial">Date	  &nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 27, 2000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
&nbsp;&nbsp;&nbsp;<u>&nbsp; /s/ G. Walton Cottrell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></pre>

<blockquote>
    <blockquote>
        <blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <blockquote>
                                <blockquote>
                                    <pre><font face="Arial">G. Walton Cottrell
Senior Vice President - Finance and
Chief Financial Officer</font></pre>
                                </blockquote>
                            </blockquote>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
    </blockquote>
</blockquote>

<p>&nbsp;</p>

<pre><font face="Arial"><strong><u>Financial Statements and Exhibits</u></strong><strong>
</strong></font></pre>

<pre><font face="Arial">(a)	Financial Statements	</font></pre>

<pre><font face="Arial">	The financial statements filed as part of this report are listed in the Index to
	Financial Statements included herein.	</font></pre>

<pre><font face="Arial">(b)	Exhibits	</font></pre>

<pre><font face="Arial">	(1)	Consent of Independent Accountants</font></pre>

<p>&nbsp;</p>
<div align="center"><center>

<pre><font face="Arial"><strong>RETIREMENT PLAN OF TALLEY METALS TECHNOLOGY, INC.
INDEX TO FINANCIAL STATEMENTS
</strong></font><font face="Courier New">
</font><font face="Arial"><strong>FORM 11-K ANNUAL REPORT	</strong></font></pre>
</center></div>

<p align="left"><a name="Index"><font face="Arial"></font></a><font  face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<pre><a href="#repindacc"><font face="Arial">Report of Independent Accountants</font></a><font  face="Arial">&nbsp;

Financial Statements:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a  href="#netassetts"><font face="Arial">Statement of Net Assets Available for Benefits as of December 31, 1999 and 1998</font></a><font  face="Arial">&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a  href="#changes"><font face="Arial">Statement of Changes in Net Assets Available for Benefits for the years</font></a><font  face="Arial">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a  href="#changes"><font face="Arial">ended December 31, 1999 and 1998</font></a><font  face="Arial">

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a  href="#notesfin"><font face="Arial">Notes to Financial Statements</font></a><font  face="Arial">	&nbsp;&nbsp;

Supplemental Schedule:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a  href="#retirement"><font face="Arial">Assets Held for Investment as of December 31, 1999</font></a><font  face="Arial">

</font><a href="#consent"><font face="Arial">Consent of Independent Accountants</font></a><font  face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></pre>

<p align="center"><a name="repindacc"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong><u>Report of Independent Accountants

</u></strong></font></pre>
</center></div>

<pre><font face="Arial"><strong>To the Participants and Administrator of the Retirement Plan of Talley Metals
Technology, Inc.:</strong></font></pre>

<pre><font face="Arial">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 Retirement Plan of Talley Metals Technology, Inc. (the
&quot;Plan&quot;) at December 31, 1999 and 1998, and the changes in net assets available for benefits for
the years then ended in conformity with accounting principles generally accepted in the United
States.  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 auditing standards generally
accepted in the United States, 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.</font></pre>

<pre><font face="Arial">Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole.  The supplemental schedule of Assets Held for Investment as of
December 31, 1999 is presented for the purpose of additional analysis and is not a required part
of the basic financial statements but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974.  This supplemental schedule is the responsibility of the Plan's
management.  The supplemental schedule has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
</font></pre>

<p>&nbsp;</p>

<pre><font face="Arial">PricewaterhouseCoopers LLP
Philadelphia, PA
June 23, 2000</font></pre>

<p><a name="netassetts"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong>RETIREMENT  PLAN  OF
TALLEY  METALS  TECHNOLOGY,  INC.

STATEMENTS  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS
</strong>as of December 31, 1999 and 1998
(dollars in thousands)	</font></pre>
</center></div>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<table border="1" cellpadding="2" cellspacing="1" width="697"
bordercolor="#000000" bordercolordark="#FFFFFF"
bordercolorlight="#FFFFFF">
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial"><b>ASSETS</b></font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial"><b>1999 </b></font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial"><b>1998 </b></font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">Investments at fair value</font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">$ 6,580 </font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">$ 6,007 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">Receivables:</font></p>
        </td>
        <td width="15%" height="20">&nbsp;</td>
        <td width="15%" height="20">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
        income receivable</font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">9 </font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions
        - salary deferral</font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">32 </font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions
        - company</font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">47 </font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        receivables</font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">88 </font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        assets</font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">6,668 </font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">6,007 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20"><p align="left"><font          color="#000000" face="Arial">Net assets available for
        benefits</font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: thin solid"><p align="right"><font          color="#000000" face="Arial">$ 6,668 </font></p>
        </td>
        <td width="15%" height="20"
        style="border-bottom: thin solid"><p align="right"><font          color="#000000" face="Arial">$ 6,007 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="20">&nbsp;</td>
        <td width="15%" height="20">&nbsp;</td>
        <td width="15%" height="20">&nbsp;</td>
    </tr>
</TABLE>
<div align="center"><center>

<pre><font face="Arial">The accompanying notes are an integral part of these financial statements.</font></pre>
</center></div>

<p><a name="changes"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong>RETIREMENT  PLAN  OF
TALLEY  METALS  TECHNOLOGY,  INC.

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
for the years ended December 31, 1999 and 1998
(dollars in thousands)	</strong></font></pre>
</center></div>

<p align="left">&nbsp;</p>

<table border="1" cellpadding="2" cellspacing="1" width="697"
bordercolor="#000000" bordercolordark="#FFFFFF"
bordercolorlight="#FFFFFF" height="594">
    <tr>
        <td width="69%" height="19">&nbsp;</td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial"><b>1999 </b></font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial"><b>1998 </b></font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Additions to net assets
        attributed to:</font></p>
        </td>
        <td width="15%" height="19">&nbsp;</td>
        <td width="15%" height="19">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Investment income:</font></p>
        </td>
        <td width="15%" height="19">&nbsp;</td>
        <td width="15%" height="19">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        appreciation in fair value of investments</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">$ 338 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">$ 365 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
        and Dividends</font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">205 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">128 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19">&nbsp;</td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">543 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">493 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Contributions:</font></p>
        </td>
        <td width="15%" height="19">&nbsp;</td>
        <td width="15%" height="19">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employer</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">772 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">897 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participant</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">592 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">416 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rollover</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">1 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
        from Talley Savings Plus</font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">2,087 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19">&nbsp;</td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">1,365 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">3,400 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        additions</font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">1,908 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">3,893 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Deductions from net assets
        attributed to:</font></p>
        </td>
        <td width="15%" height="19">&nbsp;</td>
        <td width="15%" height="19">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Benefits paid to
        participants</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">1,240 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">166 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Transfer to Waterbury
        Independence Plan</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">- </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">133 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Administrative expenses</font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">7 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">2 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        deductions</font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">1,247 </font></p>
        </td>
        <td width="15%" height="19"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">301 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        increase</font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">661 </font></p>
        </td>
        <td width="15%" height="19"><p align="right"><font          color="#000000" face="Arial">3,592 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" height="19"><p align="left"><font          color="#000000" face="Arial">Net assets available for
        benefits:</font></p>
        </td>
        <td width="15%" height="19">&nbsp;</td>
        <td width="15%" height="19">&nbsp;</td>
    </tr>
    <tr>
        <td width="69%" height="18"><p align="left"><font          color="#000000" face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning
        of year</font></p>
        </td>
        <td width="15%" height="18"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">6,007 </font></p>
        </td>
        <td width="15%" height="18"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" face="Arial">2,415 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        height="19"><p align="left"><font color="#000000"
        face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End
        of year</font></p>
        </td>
        <td width="15%" bgcolor="#FFFFFF" height="19"
        style="border-bottom: thin solid"><p align="right"><font          color="#000000" face="Arial">$ 6,668 </font></p>
        </td>
        <td width="15%" bgcolor="#FFFFFF" height="19"
        style="border-bottom: thin solid"><p align="right"><font          color="#000000" face="Arial">$ 6,007 </font></p>
        </td>
    </tr>
    <tr>
        <td width="69%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        height="20">&nbsp;</td>
        <td width="15%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        height="20">&nbsp;</td>
        <td width="15%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        height="20">&nbsp;</td>
    </tr>
</TABLE>
<div align="center"><center>

<pre><font face="Arial">The accompanying notes are an integral part of these financial statements.</font></pre>
</center></div>

<p><a name="notesfin"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong>RETIREMENT  PLAN  OF
TALLEY  METALS  TECHNOLOGY,  INC.

NOTES  TO  FINANCIAL  STATEMENTS
</strong>		</font></pre>
</center></div>

<pre><font face="Arial"><strong>1.	</strong><strong><u>Description of Plan</u></strong><strong>:</strong></font></pre>

<pre><font face="Arial">	The following brief description of the Retirement Plan of Talley Metals Technology, Inc. (the
	Plan) is provided for general information purposes only.  Participants should refer to the
	Plan document for more complete information.

<strong>		</strong><strong><u>General</u></strong><strong>:</strong></font></pre>

<pre><font face="Arial">	The Plan is a defined contribution plan covering all employees of Talley Metals
	Technology, Inc. and Amcan Specialty Steels, Inc. (collectively called the Company) who
 	have one year of service and are age eighteen or older.  It is subject to provisions of the
	Employee	Retirement Income Security Act of 1974 (ERISA).  Prior to June 1, 1998, the
	Plan had been designed as a money purchase pension plan.  Any contributions made
	prior to that date and earnings on those contributions will be subject to the terms of those
	plan documents.
</font><font face="Courier New">
</font><font face="Arial">	The Company was acquired on February 19, 1998 by Carpenter Technology Corporation
	(Carpenter) as a result of Carpenter's acquisition of Talley Industries, Inc.  During 1998,
	funds were transferred from the Talley Savings Plus Plan, which has been terminated.  In
	addition, funds were transferred from the Plan to the Waterbury Independence Plan for the
	participants who are employees of Waterbury Companies, Inc. - Louisiana facility.  These
	employees are no longer eligible participants in the Plan.

	Effective July 1, 1999, Amcan Specialty Steels, Inc. was merged into Talley Metals
	Technology, Inc., at which time these employees became eligible to participate in the Plan.
		</font></pre>

<pre><font face="Arial"><strong>		</strong><strong><u>Contributions</u></strong><strong>:</strong></font></pre>

<pre><font face="Arial">	Each participant may, at their discretion, contribute between 1% and 15% of their
	compensation through elective deferrals.

	The Company makes annual Guaranteed Contributions to the Plan on behalf of
	participants.  The amount of such contributions is five percent of each participant's
	earnings during the calendar year.  In addition, the employer also makes a matching
	contribution of 100% of the first 3% of the participant's base earnings that a participant
	contributes to the Plan.  Participants may also contribute amounts representing
	contributions from other qualified defined benefit or defined contribution plans.

	Participants may direct all contribution in one or more of the following investment options in
	five percent increments as directed by the participants based on their personal investment
	goals:
</font><font face="Courier New">
</font><font face="Arial">	M&amp;I Stable Principal Fund - Funds are invested in guaranteed investment contracts of
	fixed interest rate with insurance companies, banks or federally insured institutions.	</font></pre>

<pre><font face="Arial">	Vanguard Wellington Fund - Funds are invested in a diversified portfolio of stocks and
	bonds to provide a combination of long-term growth and income.

	Vanguard Equity Income Fund - Funds are invested in a broadly diversified portfolio of
	stocks of large, established companies that pay higher than average dividends to provide
	income and modest long-term growth.

	Vanguard Windsor II Fund - Funds are invested in a broadly diversified portfolio of large,
	established companies believed to be undervalued relative to their current prices to
	provide long-term growth and modest dividend income.

	Vanguard Index Trust (500 Portfolio) - Funds are invested in the same stocks that are in
	the Standard &amp; Poor's 500 Composite Stock Price Index (S&amp;P 500) to provide long-term
	growth by attempting to match the performance and risk characteristics of the unmanaged
	S&amp;P 500 Index, a broad measure of the U.S. stock market.

	Vanguard U.S. Growth Portfolio - Funds are invested in a portfolio of large, established
	companies that have good growth records, strong market positions and have exhibited
	long-term financial strength to provide potential long-term growth with dividends.

	American Century Fund - Holds equity securities of foreign companies in developed
	countries that exhibit accelerating growth.

	Neuberger &amp; Berman Genesis Trust - Holds primarily stocks of companies with small
	market capitalizations (up to $1.5 billion at the time of the portfolio's investment) which are
	selling at attractive prices, with a history of solid performance and a proven management
	team.

	Carpenter Technology Corporation Stock Fund - Consists of investments in Carpenter
	Technology common stock, with a small portion of the fund invested in a money market fun
	to provide liquidity requirements of daily valuation.

		<strong><u>Participant's Accounts</u></strong>:

	Participant accounts are maintained and updated by the recordkeeper, Marshall &amp; Ilsley (M&amp;I),
	which also acts as the trustee.  Each participant's account is credited with the participant's
	contribution, the Company's contributions and an allocation of Plan investment earnings.	</font></pre>

<pre><font face="Arial">		<strong><u>Vesting</u></strong><strong>:</strong>

	Participants are 100% vested in all contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong><u>Participant Loans</u></strong>:

	Loans are available to participants who are active employees of the Company.
	Participants are subject to certain restrictions on their number of loans, amount and terms of
	repayment.  Interest is charged at the prime rate for commercial lenders at the time the
	loan is initiated, plus one percent.  Loan repayments must be made under a level
	amortization schedule through regular payroll deductions, and payment in full is required at
	the time of the participant's separation.	</font></pre>

<pre><font face="Arial">		<strong><u>Payment of Benefits</u></strong>:

	On termination of service due to death, disability, or retirement, a participant is entitled to
	full distribution of all amounts credited to his or her account.  For termination of service due
	to other reasons, a participant is entitled to the amount credited to his or her account.
	Payments will be paid out in a lump sum or under a variety of annuity forms available for
	election by the participant.  Benefit payments are recorded upon distribution.
	</font></pre>

<pre><font face="Arial"><strong>2.	</strong><strong><u>Summary of Significant Accounting Policies</u></strong><strong>:</strong><strong><u>

</u></strong>	  A.&nbsp;&nbsp;&nbsp;The financial statements of the Plan are prepared under the accrual method of accounting.

	&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;The Plan adopted Statement of Position (SOP) No. 99-3, &quot;Accounting for and Reporting of
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain Defined Contribution Benefit Plan Investments and Other Disclosure Matters.&quot;  SOP No. 99-3
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;simplifies the presentation and disclosure of by-fund information for participant directed investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;The preparation of financial statements in conformity with generally accepted accounting
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;principles requires management to make estimates and assumptions that affect the reported
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities.  Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	  D.&nbsp;&nbsp;The investment in the M&amp;I Stable Prinicipal Fund is stated at contract value, which represents
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;contributions made under the contract, plus earnings, less participant withdrawals and administrative
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expenses.  The investment in the other trust funds are stated at their fair value, based on the current
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;market values of the underlying assets of the funds, or as determined by the trustee.  Purchases and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sales of investments are reflected on a trade-date basis.  Gain or loss on sales of investments is based
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on average cost.  Dividend income is recorded on the ex-dividend date.  Income from other investments
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;is recorded as earned on an accrual basis.</font></pre>

<pre><font face="Arial">	  E.&nbsp;&nbsp;The net appreciation (depreciation) in the fair value of investments in the statement of changes in net
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assets available for benefits consists of realized gains or losses and unrealized appreciation (depreciation)
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on investments.

	  F.&nbsp;&nbsp;Benefits are recorded when paid.</font></pre>

<pre><font face="Arial">	  G.&nbsp;&nbsp;Investments are exposed to various risks, such as interest rate, market and credit risks.  Due to the level
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of risk associated with certain investments and the level of uncertainty related to changes in the value of
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investments, it is reasonably possible that changes in&nbsp;these risks in the near term could materially affect
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the amounts reported in the statement of net assets&nbsp;available for benefits and the statement of changes in
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net assets available for benefits.</font></pre>

<pre><font face="Arial"><strong>3.	</strong><strong><u>Investments</u></strong><strong>:

	The following presents investments that represent 5 percent or more of the Plan's net assets.
	 (Shares and dollars in thousands)</strong></font></pre>

<table border="1" cellpadding="2" cellspacing="1" width="751"
bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF" height="386">
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td width="39" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td width="447" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="154" height="18"
        style="border-bottom: 1px solid"><p align="center"><font          color="#000000" size="2" face="Arial"><b>at December 31</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="39" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="447" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="77" height="14"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" size="3" face="Arial"><b>1999 </b></font></p>
        </td>
        <td width="77" height="14"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" size="3" face="Arial"><b>1998 </b></font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">M&amp;I Stable Principal
        Fund, 2,167 and 1,947 shares, respectively</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">$ 2,167 </font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">$ 1,947 </font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Vanguard Wellington Fund, 14
        and 15 shares, respectively</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">402 </font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">447 </font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Vanguard Windsor II Fund, 33
        and 33 shares, respectively</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">834 </font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">998 </font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Vanguard Index 500 Fund, 12
        and 11 shares, respectively</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">1,675 </font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">1,346 </font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Vanguard U.S. Growth Fund,
        20 and 17 shares, respectively</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">878 </font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          color="#000000" face="Arial">635 </font></p>
        </td>
    </tr>
</TABLE>

<pre><font face="Arial">	During 1999 and 1998, the Plan's investments (including gains and losses on investments
	bought and sold, as well as held during the year) appreciated (depreciated) in value by
	$338,000 and $365,000 as follows:

</font></pre>

<table border="1" cellpadding="2" cellspacing="1" width="751"
bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF" height="386">
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td width="39" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td width="447" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="154" height="18"
        style="border-bottom: 1px solid"><p align="left"><font          color="#000000" size="2" face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(in
        thousands)</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="39" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="447" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="14">&nbsp;</td>
        <td width="77" height="14"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" size="3" face="Arial"><b>1999 </b></font></p>
        </td>
        <td width="77" height="14"
        style="border-bottom: 1px solid"><p align="right"><font          color="#000000" size="3" face="Arial"><b>1998 </b></font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Common stock</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;(43)</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;(15)</font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18"><p align="left"><font          color="#000000" face="Arial">Mutual funds</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">381&nbsp;</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">380&nbsp;</font></p>
        </td>
    </tr>
    <tr>
        <td width="71" bgcolor="#FFFFFF" bordercolor="#FFFFFF"
        bordercolordark="#FFFFFF" bordercolorlight="#FFFFFF"
        height="18">&nbsp;</td>
        <td colspan="2" width="494" bgcolor="#FFFFFF"
        bordercolor="#FFFFFF" bordercolordark="#FFFFFF"
        bordercolorlight="#FFFFFF" height="18">&nbsp; </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">$&nbsp;&nbsp;&nbsp;338&nbsp;</font></p>
        </td>
        <td width="77" height="18"><p align="right"><font          face="Arial">$&nbsp;&nbsp;&nbsp;365&nbsp;</font></p>
        </td>
    </tr>
</TABLE>

<pre><font face="Arial"><strong>4.	</strong><strong><u>Tax Status of the Plan</u></strong><strong>:

</strong>	The Internal Revenue Service has determined and informed the Company by a letter dated
	December 30, 1999, that the Plan is qualified and that the trust established under the Plan
	is tax-exempt, under the appropriate sections of the Internal Revenue Code (the Code).
	The Plan administrator believes the Plan is currently being operated in compliance with
	applicable sections of the Code.		</font></pre>

<pre><font face="Arial"><strong>5.	</strong><strong><u>Administrative Expenses</u></strong><strong>:

</strong>	The participants are assessed a fee for loan originations and lump sum distributions.  In
	addition, investment income is shown net of investment management fees.  All other
	expenses are paid by the Company.</font></pre>

<pre><font face="Arial"><strong>6.	</strong><strong><u>Plan Termination</u></strong><strong>:

</strong>	Although it has not expressed any 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.

<strong>7.	</strong><strong><u>Related Party Transactions</u></strong><strong>:

</strong>	Certain Plan investments are shares of mutual funds managed by Marshall &amp; Ilsley.  Marshall &amp; Illsley is the
	trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest.  Fees paid by the
	Plan for the investment management services amounted to $7,000 for the year ended December 31, 1999.</font></pre>

<p><a name="retirement"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong>Retirement Plan of Talley Metals Technology, Inc.
Schedule H, Part IV, Item 4i - Schedule of Assets Held for Investment Purposes
December 31, 1999</strong></font></pre>
</center></div>

<table border="1" cellpadding="2" width="841"
bordercolordark="#FFFFFF">
    <tr>
        <td width="20" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>(A)</b></font></p>
        </td>
        <td width="322" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>(B)</b></font></p>
        </td>
        <td width="281" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>(C) Description of investment,
        including</b></font></p>
        </td>
        <td width="88" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>(D)</b></font></p>
        </td>
        <td width="90" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>(E)</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="20" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20">&nbsp;</td>
        <td width="322" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>Identity of issue, borrower,
        lessor or similar party</b></font></p>
        </td>
        <td width="281" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>maturity date, rate of interest,
        collateral,</b></font></p>
        </td>
        <td width="88" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>Cost</b></font></p>
        </td>
        <td width="90" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="20"><p align="center"><font color="#000000"
        size="2" face="Arial"><b>Current</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="20" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="21" style="border-bottom: 1px solid">&nbsp;</td>
        <td width="322" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="21" style="border-bottom: 1px solid">&nbsp;</td>
        <td width="281" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="21" style="border-bottom: 1px solid"><p          align="center"><font color="#000000" size="2"
        face="Arial"><b>par or maturity value</b></font></p>
        </td>
        <td width="88" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="21" style="border-bottom: 1px solid">&nbsp;</td>
        <td width="90" bgcolor="#C0C0C0"
        bordercolordark="#C0C0C0" bordercolorlight="#C0C0C0"
        height="21" style="border-bottom: 1px solid"><p          align="center"><font color="#000000" size="2"
        face="Arial"><b>Value</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20"><p align="center"><font          color="#000000" face="Arial">*</font></p>
        </td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">M&amp;I Stable
        Principal Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Fixed income funds</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$ 2,166,573 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$ 2,166,573 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Vanguard Wellington
        Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        436,679 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$
        &nbsp;&nbsp;&nbsp;402,330 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Vanguard Equity
        Income Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        288,707 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        279,939 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Vanguard Windsor II
        Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$ 1,003,138 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        834,010 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Vanguard Index
        Trust (500 Portfolio)</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$ 1,370,089 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$ 1,674,631 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Vanguard U.S.
        Growth Portfolio</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        758,567 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;
        878,001 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">American Century
        Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,353 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        29,533 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20">&nbsp;</td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Neuberger &amp;
        Berman Genesis Trust</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Mutual fund</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        16,121 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        17,343 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="20"><p align="center"><font          color="#000000" face="Arial">*</font></p>
        </td>
        <td width="322" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Carpenter
        Technology Corporation Stock Fund</font></p>
        </td>
        <td width="281" height="20"><p align="left"><font          color="#000000" size="2" face="Arial">Corporate common
        stock</font></p>
        </td>
        <td width="88" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$
        &nbsp;&nbsp;&nbsp;154,608 </font></p>
        </td>
        <td width="90" height="20"><p align="right"><font          color="#000000" size="2" face="Arial">$
        &nbsp;&nbsp;&nbsp;157,412 </font></p>
        </td>
    </tr>
    <tr>
        <td width="20" height="21">&nbsp;</td>
        <td width="322" height="21"><p align="left"><font          color="#000000" size="2" face="Arial">Participant Loans</font></p>
        </td>
        <td width="281" height="21"><p align="left"><font          color="#000000" size="2" face="Arial">Loans to
        Participants - interest rate 9.5%</font></p>
        </td>
        <td width="88" height="21"><p align="right"><font          color="#000000" size="2" face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        - </font></p>
        </td>
        <td width="90" height="21"><p align="right"><font          color="#000000" size="2" face="Arial">$
        &nbsp;&nbsp;&nbsp;140,221 </font></p>
        </td>
    </tr>
</TABLE>

<p><font color="#000000" size="1" face="Arial">*
Party-in-Interest</font></p>

<p><a name="consent"></a></p>
<div align="center"><center>

<pre><font face="Arial"><strong>CONSENT OF INDEPENDENT ACCOUNTANTS
</strong>
</font></pre>
</center></div>

<pre><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the incorporation by reference in the Registration Statement on Form S-8
(number 2-83780) of Carpenter Technology Corporation of our report dated June 23, 2000 relating
to the financial statements of the Retirement Plan of Talley Metals Technology, Inc., which appears in this Form 11-K.




</font></pre>

<pre><font face="Arial">PricwaterhouseCoopers LLP
Philadelphia, PA
June 27, 2000</font></pre>
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