10/21/2010 10:24:00 AM
NEWS BRIEFS
Precision Castparts Fastener Sales Hurt by Lower Demand
Lower OEM and distributor demand pushed Precision Castparts’ Fastener Products sales down 0.9% to $327.1 million in the second quarter of fiscal 2011. Sales of airframe structural fasteners, one of Fastener Products’ core markets, dropped by more than 50% at two of the segment’s major manufacturing facilities. PCC has worked to offset this decline with non-structural fasteners.
“Fastener Products continues to increase its market share in aerospace products and to strengthen its position for solid growth as demand starts to return,” the company stated.
Fiscal Q2 fastener segment income totaled $97 million, or 29.7% of sales, compared to operating income of $110.7 million, or 33.5% of sales a year ago. Net income of $7.4 million from discontinued operations was primarily due to the sale of an automotive fastener operation.
“Our Investment Castings and Forgings aerospace order books are emerging strongly year over year after a long, dry spell of customer destocking,” stated CEO Mark Donegan. “We have not yet seen the same dynamics in Fastener Products, but we anticipate a vigorous recovery moving into next year.”
Overall PCC revenue increased 17% to $1.5 billion, while operating income grew 8% to $362.6 million, or 24% of sales in the quarter. Net income from continuing operations rose 11% to $243.6 million.
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