Aerospace fastener and components supplier Precision Castparts Corp. cut 10,000 jobs – about a third of its global workforce – in the first half of 2020 “as orders for its aerospace components evaporated,” the Oregonian reports.

The news comes two months after Portland, OR-based PCC laid off 717 employees at two separate facilities in Oregon. At the time, the company attributed the layoffs to COVID-19.

Warren Buffet’s Berkshire Hathaway acquired PCC in 2016 for $37.2 billion cash.  But in new SEC filings, Berkshire Hathaway said it wrote down the PCC’s value by $9.8 billion – an acknowledgment that Berkshire Hathaway paid too much for PCC, and that the aerospace company has not been operating well under the new ownership, according to the Oregonian.

“It’s a recognition of what the market has long believed, that the purchase price was rich, and the integration not as smooth as many would have hoped,” CFRA research analyst Cathy Seifert told Reuters.

Boeing’s struggles with the 737 MAX also hurt PCC’s Q2 performance, with revenues reduced by one-third to $1.8 billion and pre-tax loss totaling $78 million.

“Precision Castparts had been struggling even before the pandemic hit due to unspecified production problems, and its revenue had grown little since the Portland company’s 2016 sale,” wrote Mike Rogoway for the Oregonian.

PCC operates a powerhouse fastener division that includes Cherry Aerospace, Air Industries and Shur-Lok.  PCC 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.  Web: PreCast.com