8/6/2012 11:56:00 AM
HEADLINES
Precision Castparts Reports Fastener Sales & Income Growth
PCC Fiscal Q1 Results
Precision Castparts Corp. reported Fastener Products sales increased 42% to $492.8 million in the first quarter of fiscal 2012, which included a full quarter of Primus and a partial quarter of sales from Centra. Segment operating income rose 37% to $146.2 million, or 29.7% of sales.
Fastener Products orders for the 787 program are gradually aligning with build rates, PCC stated.
“Base critical aerospace fastener sales showed more than 15% growth year over year due to base aircraft production increases, slowly improving 787 orders, and heightened distribution activity, and the segment’s aerostructures businesses, including the newer acquisitions, are seeing steady top-line improvement as well,” the company stated.
“Operationally, the base aerospace fastener businesses are starting to drop through solid incremental margins as larger volumes are leveraged across much improved cost structures, and the aerostructures operations are performing beyond initial expectations and driving their margins higher.”
During the period PCC agreed to acquire certain aerostructures business units and McSwain Manufacturing from Heroux-Devtek Inc. for $296.2 million.
Heroux-Devtek’s aerostructures operations manufacture components and assemblies from aluminum, aluminum-lithium, and titanium, such as bulkheads, wing ribs, spars, frames, and engine mounts. The aerostructures operations include Progressive Machine in Arlington, TX, as well as plants in Dorval (Montreal), Canada, and Queretaro, Mexico. Collectively these three businesses will be reported as part of PCC’s Fastener Products segment.
“All of our businesses are well-positioned for the future; the long-range growth prospects for the top- and bottom-line are solid,” stated CEO Mark Donegan.
“Wyman-Gordon and SPS Technologies demonstrated our ability to establish a beachhead in an industry and progress aggressively forward, and we are confident that these aerostructures businesses will give us the same traction,” Donegan added.
Overall PCC sales increased 17.6% to $1.97 billion, with operating income up 23% to $515.5 million and net income gaining 20% to $344 million.
“Our aerospace and power end markets look very solid right now,” Donegan noted. ©2012 GlobalFastenerNews.com
Related Stories:
• STOCKS: Fastener Sales See Double-Digit Jump at B/E Aerospace
• U.S. Fastener Demand A Bright Spot in Global Economy
• STOCKS: Barnes Group Achieves Organic Growth
• STOCKS: Wesco Aircraft Reports Sales and Profit Growth
Related Links:
Share: