Aerospace Fastener Sales Grow at Precision Castparts

Jason Sandefur

Driven by aerospace sales, fastener revenue at Precision Castparts Corp. grew 14% to $199.8 million in the third quarter of fiscal 2006, while operating income rose 53% to $36.4 million. Fastener Products’ aerospace sales, which include revenue from Air Industries Corp., have grown more than 30% year over year. Well over half of that growth was organic, driven by excellent positioning on the “right” aircraft platforms and share gains, PCC commented.
“Despite some headwind in its automotive business, Fastener Products is doing a great job of working its aerospace acquisition growth strategy, incorporating those acquisitions smoothly, and driving operational margins to the next level of excellence,” noted CEO Mike Donegan. “In fact, this segment’s operating income during the quarter exceeded the annual operating income for [SPS Technologies] at the time of acquisition.”
PCC’s fastener segment continues to alter its product mix, with aerospace sales at approximately 68% of total sales in the quarter versus 60% a year ago. The success of its aerospace fastener business helped the Fastener Products segment overcome a year-over-year decline of nearly 15% in automotive/general industrial sales, due to a general downturn in the industry and calendar year-end order push-outs, the company commented.
Overall Q3 sales gained 16.2% to $864.4 million, while net income grew 46.9% to $91.2 million. Web: precast.com �2006 FastenerNews.com