Global Fastener News

10/13/2010 9:47:00 PM
End of 2009 Stock Report: PRECISION CASTPARTS

END of 2009 RESULTS
Precision Castparts reported Fastener Products sales for fiscal 2010 dropped 12% to $1.4 billion, while segment operating income declined 4.3% to $439.3 million, or 32.5% of sales. 

Those results included a 13% sales drop to $333.6 million during the final fiscal quarter, along with a 9% dip in segment operating income to $108.4 million. 

“With aerospace destocking at an end, direct aerospace OEM orders are seeing a gradual recovery, with solid upside in the second half of fiscal 2011 in response to the ramp of 787 production and higher aircraft build rates,” the company stated. 

“The Investment Cast Products and Fastener Products segments demonstrated their ability to deliver continued performance improvement in less than optimal market conditions,” stated CEO Mark Donegan said. 

Overall sales at PCC dropped 19.3% to $5.5 billion, with net income declining to $924.3 million. 

2008
Precision Castparts’ fastener sales climbed 14% to $1.6 billion during fiscal 2009, which ended March 31. Operating income from fasteners grew 23% to $459 million (29.5% of sales). 

PCC reported “year over year, operating margins also improved” in the fastener segment as “each plant continues to drive cost improvements and increased productivity.”

Fourth quarter fastener totaled $386.3 million, up from $377.7 million the previous year. Q4 operating income rose 11.8% to $118.5 million (30.7% of sales). 

“The segment capitalized on continued market share growth to overcome the negative pressures of foreign currency and softening in the business jet market” during Q4, PCC stated. 

Corporate highlights for Portland, OR-based PCC included record consolidated segment operating income margin of 24.9%, EPS from continuing operations of $1.87 and cash of $555 million against total debt of $306 million. 

Overall sales at PCC rose to $6.8 billion, with net income gaining 4% to $1.04 billion. 

HISTORY
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 Fax 503 417-4817
Web: precast.com
CEO: Mark Donegan, 52
Investor Relations: Dwight Weber
Fastener executive: Steven Hackett, executive VP and president of fastener products
Employees: 20,000
©2010 GlobalFastenerNews.com