8/4/2009
HEADLINES
STOCKS: Fastener Margins Rise at Precision Castparts
Despite lower sales volume, Precision Castparts Corp. reported Fastener Products operating income rose 1.2% to $114 million, or 32.4% of sales, in the first quarter of fiscal 2010, compared to margins of 28.4%. Fastener revenue dropped 11% to $351.8 million, hurt by “aerospace destocking throughout its large commercial supply chain, significant cuts in regional/business aircraft production at several facilities, and general industrial market declines.”
Precision Castparts was cautiously optimistic that the “extremely volatile aerospace industry” has begun to stabilize.
“As we look beyond Q2, this situation stabilizes, with the order rate aligning more closely with the current build rates, and our aerospace sales returning close to pre-destocking levels by the end of the fiscal year,” stated CEO Mark Donegan.
Overall Q1 sales fell 22% to $1.4 billion, while net income slid 12% to $240.2 million. ©2009 GlobalFastenerNews.com
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