5/5/2009
NEWS BRIEFS
Precision Castparts’ Fastener Sales Up
Precision Castparts’ Corporation’s fastener sales were up both for the just completed fourth quarter and for its fiscal year.
Fiscal 2009 Fastener Products sales totaled $1.6 billion of the corporation’s $6.8 billion in sales. Fastener sales for the previous year were $1.4 billion.
Fourth quarter Fastener Products sales of PCC’s fiscal 2009 totaled $386.3 million, up from $377.7 million the previous year.
PCC reported “year over year, operating margins also improved” in the fastener segment as “each plant continues to drive cost improvements and increased productivity.”
Fourth quarter operating income rose to $118.5 million (30.7% of sales) from $105.9 million (28% of sales) in the March quarter a year ago.
“The segment capitalized on continued market share growth to overcome the negative pressures of foreign currency and softening in the business jet market during the quarter, with additional share gains available across a wide spectrum of product families,” according to the company’s report. “Delivering strong operational performance on all fronts in the fourth quarter, Fastener Products continues to identify and implement significant opportunities for further margin improvement going forward.”
Fastener fiscal 2009 operating income was $459 million (29.5% of sales), compared with $373.7 million (26.3%) for fiscal 2008.
Corporate highlights for Portland, OR-based PCC included record consolidated segment operating income margin of 24.9%, EPS from continuing operations of $1.87 and cash of $555 million against total debt of $306 million. Total corporate fourth quarter sales slipped from $1.8 billion for 2008 to $1.6 billion for the same period of 2009.
PCC noted “the weakening of foreign currencies relative to the U.S. dollar had a negative impact of $86.6 million in sales and $17 million in consolidated segment operating income.”
Fiscal 2009 net income was $1.04 billion, compared with $959 million for fiscal 2008.
CEO Mark Donegan acknowledged PCC “faced some strong headwinds” in the fourth quarter, including slower-than-expected recovery from the Boeing strike, lower metal selling prices and weakening foreign currencies. “During the first quarter and into the second quarter of fiscal 2010, our aerospace customers are making corrections to their inventories that will take some anticipated growth out of their schedules and will impact each of our three operating segments,” Donegan said.
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