UPDATE 1-Carpenter Technology posts lower Q4 profit

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July 31 (Reuters) - Specialty alloy producer Carpenter Technology Corp (CRS.N) posted a lower fourth-quarter profit, hurt by higher costs.

The company posted earnings from continuing operations of $46.9 million, or $1.01 per share, including a special reserve for litigation matters of 8 cents per share, compared to $58.9 million, or $1.12 per share, a year ago.

Net income for the quarter was $53.4 million, or $1.15 per share, compared with $61.3 million, or $1.17 per share, in last year.

Net sales from continuing operations rose 4 percent to $556.3 million.

Cost of sales for the quarter rose more than 6 percent to $439 million. Selling, general and administrative expenses rose to $44.6 million from $33.4 million a year ago.

Analysts on average expected the company to earn $1.09 per share, before special items, on revenue of $516.4 million, according to Reuters Estimates.

Net sales at the company's advanced metals operations rose more than 2 percent to $393.1 million, while sales at premium alloys operations increased increased about 12 percent to $167 million. Shares of the company, which have lost more than 48 percent of thier value so far this year, closed at $39.60 Wednesday on the New York Stock Exchange. (Reporting by Chakradhar Adusumilli in Bangalore; Editing by Jarshad Kakkrakandy)