7/24/2014 3:39:00 AM
NEWS BRIEFS
Precision Castparts Reports Growth in Fastener Segment
Precision Castparts Corp. reported sales for the Airframe Products segment — including fasteners — increased 18% year over year to $807 million in the first quarter of fiscal 2015.
Despite some margin dilution from new acquisitions, operating income improved 18% to $242 million, or 30% of sales.
“Aerospace sales, which grew by approximately 22% year over year, still reflected a disconnect of one to one-and-a-half aircraft between 787 build rates and fastener shipments, which will align with current aircraft production over the coming months.”
During the quarter, the segment saw a significant boost in customer ordering patterns, with heightened demand for key components and more aggressive shipment schedules.
“Operationally, Airframe Products segment made progress in improving its performance through continued leverage of increased volumes in its base businesses, while rapidly integrating its newer acquisitions to deliver operating margins closer to the segment average.”
In addition, the segment’s operations are putting plans in place to meet rising customer requirements.
“Commercial aerospace activity is and will continue to be the single biggest driver of our growth in fiscal 2015,” Donegan said.
“In addition, some Airframe Products’ customers significantly accelerated their ordering activity during the quarter. These higher volumes, along with further share gains, are driving the segment’s operations to take steps right now to be ready for the increased production that we can expect later this fiscal year.”
In the first quarter of fiscal 2015, PCC showed steady sales growth year over year in its key end markets and continued to strongly leverage increasing production volumes.
Overall PCC sales in the first quarter of 2015 rose 7% to $2.53 billion. Year over year, organic sales growth was approximately 4%. Consolidated segment operating income showed a 14% increase year over year, climbing to $736 million, or 29.1% of sales, versus $644 million, or 27.2% of sales, a year ago. Net income from continuing operations rose 14% to $484 million, compared to net income of $424 million in the first quarter of fiscal 2014. Earnings per share (EPS) from continuing operations were $3.32 in the quarter.
Including discontinued operations, total net income for the first quarter of fiscal 2015 was $483 million, or $3.31 per share.
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