5/17/2012 12:11:00 PM
NEWS BRIEFS
Precision Castparts Fastener Revenue Tops 40% Growth
Precision Castparts reported Fastener Products’ revenue grew 42% to $487.9 million in the final quarter of fiscal 2012, which ended on April 1. Q4 sales included full quarter results from Primus and PB Fasteners.
Base aerospace sales grew by approximately 15%, “driven by some encouraging pick-up in orders for the segment’s critical aerospace core fastener products in the last two quarters of the fiscal year, a trend that now appears to be moving along a steady upward slope.”
PCC said the gap between the higher order levels and commercial aircraft production rates continued to close.
“In terms of the aerostructure products within the segment, sales are basically tracking the increases in commercial build rates, with strong upside potential as the 787 ramps up.” CEO Mark Donegan said the ramp-up of the 787 program “is just beginning to get exciting.”
Fastener Products operating income improved 33% to $139.5 million, or 28.6% of sales, compared to segment operating income of $105 million, or 30.5% of sales last year. The increased volume of core product running through the base fastener businesses is starting to drive “solid incremental drop-through.”
“As our first major move into aerostructures, Primus is proving to be everything we expected and more,” Donegan stated. “These operations have set aggressive goals for improvement and are well on the way to achieving them, which should get Fastener Products back to 30% operating margins before the end of fiscal 2013.”
Full-year Fastener Products revenue grew 26% to $1.7 billion, while operating income increased 19% to $488.1 million. ©2012 GlobalFastenerNews.com
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