5/16/2011 8:28:00 PM
HEADLINES
PRECISION CASTPARTS
Precision Castparts Corp. reported Fastener Products’ sales grew 5.5% to $344.7 million for the fourth quarter of fiscal 2011.
Strong markets helped to increase year-over-year general industrial sales by $11 million, and share gains in non-core aerospace fastener products grew sales by $12 million over the same period.
“The most significant future catalysts for segment growth continue to be the 787 ramp-up and the recovery of fastener distribution orders,” the company stated. “Right now, production of both base aircraft and the 787 is being fed out of existing customer inventory.”
“As those inventory levels fall, and production demand increases, the segment is poised to transition into much improved schedules beginning late in the second quarter or early in the third quarter of fiscal 2012.”
Fastener segment operating income slipped 2.8% to $105 million, or 30.5% of sales. Segment operating margins were affected by strong general industrial sales and product mix shifts away from its core aerospace products to lower margin aerospace fasteners.
“In our fastener business, we expect to transition gradually toward a similar robust recovery in OEM and distributor orders toward the back half of fiscal 2012, once production rate increases deplete our customers’ inventories,” stated CEO Mark Donegan.
“Patience and focus continue to be key to the success of our acquisition strategy,” Donegan said.
In 2011 Precision Castparts acquired PB Fasteners, a business they pursued for more than two years.
“PB Fasteners improves our position on the 787, and the value of their technology on composite-based aircraft will put us in a good position on other new, advanced aerospace platforms.”
Full year Fastener Products sales rose 1.5% to $1.34 billion, while operating income declined 6.6% to $411 million.
Overall PCC sales climbed 13.9% to $6.22 billion, with net income growing 10% to $1.01 billion.
Precision Castparts has forged a powerhouse fastener division that includes Cherry Aerospace, Air Industries and Shur-Lok.
Precision Castparts assembled its fastener division by acquiring SPS Technologies in 2003 for $893 million and airframe fastener maker AIC in early 2005 for $194 million.
PCC also manufactures thread rolling dies and header tooling for fastener machinery.
PCC supplies structural and airfoil components for the aircraft engine and industrial gas turbine industries and has diversified into non-aerospace businesses.
The company has more than 80 facilities in 22 states and 16 countries.
Corporate Office: 4650 SW Macadam Ave., Portland, OR 97201-4254. Tel: 503 417-4800 Web: precast.com
CEO: Mark Donegan
Employees: 21,000
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