10/27/2011 3:05:00 PM
HEADLINES
Precision Castparts Finalizes PB Fasteners Acquisition
Precision Castparts completed its acquisition of Gardenia, CA-based PB Fasteners for an undisclosed sum.
“The addition of PB Fasteners, which closed just after the end of the second quarter, further amplifies our fastener product line, adds to our already strong position on the 787, and will provide many opportunities on other composite aircraft in the future,” stated CEO Mark Donegan.
Founded in 1967, PB designs and manufactures fastener products for airframe applications, including the development of the SLEEVbolt fastening system, which is critical to mitigating the impact of lightning strikes on the Boeing 787 aircraft.
Fastener Products Sales & Profit Grow
PCC reported second-quarter sales for Fastener Products increased 27% to $414.9 million.
“The segment’s aerospace sales saw a year-over-year improvement of 9%,” the company stated. “In addition, order books for the second half of the fiscal year are starting to firm up, although OEM and distributor orders still appear to be lagging the increased aircraft build rates.”
But CEO Mark Donegan said fastener orders have not caught up with the pace of business in other aerospace segments.
“The fastener business continues to lag this aerospace recovery; the bottom is definitely behind us, however, and the order books are gaining steady traction over the next three to four quarters.”
Operating income gained 17% to $113.7 million — or 27.4% of sales compared to 29.7% of sales in the second quarter of the previous fiscal year. Margins were driven by “higher throughput and by the addition of Primus, now called PCC Aerostructures.”
“The inclusion of the lower-margin acquisition in this quarter’s results effectively established a new baseline for Fastener Products,” PCC explained.
“With the integration of PCC Aerostructures actively underway, the segment has already begun to capture valuable synergies and to achieve top- and bottom-line growth.”
“Fastener Products has worked diligently to improve its operations at all levels while facing the extended hiatus in core product orders and is poised for steady operating margin recovery as core volumes return.”
First-half Fastener Products sales rose 16.3% to $762.9 million, while operating income gained 9.6% to $220.5 million. ©2011 GlobalFastenerNews.com
Precision Castparts completed its acquisition of Gardenia, CA-based PB Fasteners for an undisclosed sum.
“The addition of PB Fasteners, which closed just after the end of the second quarter, further amplifies our fastener product line, adds to our already strong position on the 787, and will provide many opportunities on other composite aircraft in the future,” stated CEO Mark Donegan.
Founded in 1967, PB designs and manufactures fastener products for airframe applications, including the development of the SLEEVbolt fastening system, which is critical to mitigating the impact of lightning strikes on the Boeing 787 aircraft.
Fastener Products Sales & Profit Grow
PCC reported second-quarter sales for Fastener Products increased 27% to $414.9 million.
“The segment’s aerospace sales saw a year-over-year improvement of 9%,” the company stated. “In addition, order books for the second half of the fiscal year are starting to firm up, although OEM and distributor orders still appear to be lagging the increased aircraft build rates.”
But Donegan said fastener orders have not caught up with the pace of business in other aerospace segments.
“The fastener business continues to lag this aerospace recovery; the bottom is definitely behind us, however, and the order books are gaining steady traction over the next three to four quarters.”
Operating income gained 17% to $113.7 million — or 27.4% of sales compared to 29.7% of sales in the second quarter of the previous fiscal year. Margins were driven by “higher throughput and by the addition of Primus, now called PCC Aerostructures.”
“The inclusion of the lower-margin acquisition in this quarter’s results effectively established a new baseline for Fastener Products,” PCC explained.
“With the integration of PCC Aerostructures actively underway, the segment has already begun to capture valuable synergies and to achieve top- and bottom-line growth.”
“Fastener Products has worked diligently to improve its operations at all levels while facing the extended hiatus in core product orders and is poised for steady operating margin recovery as core volumes return.”
First-half Fastener Products sales rose 16.3% to $762.9 million, while operating income gained 9.6% to $220.5 million. ©2011 GlobalFastenerNews.com
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