Precision Castparts Corp. (PCP) today reported disappointing results in its fiscal second quarter.

Sales in the quarter totaled $1.3 billion, compared to sales of $1.8 billion last year. Included in the year-over-year sales decline were the negative effects of foreign exchange of approximately $29 million, lower material pass-through of approximately $37 million, and lower selling prices of external alloys at the company’s three primary mills of approximately $62 million.

Precision Castparts delivered operating income of $337 million, or 25.9% of sales, versus $404.1 million, or 22.5% of sales a year ago. Total net income from continuing operations in the quarter was $218.3 million, compared to $265.1 million in the same quarter last year. Earnings per share from continuing operations were $1.54 (diluted, based 141.6 million shares outstanding), compared to last year’s figure of $1.88 (diluted, based on 140.7 million shares outstanding).

The company took a pre-tax impairment charge of $11.6 million related to certain assets of discontinued operations. This resulted in net income including discontinued operations of $207.3 million, or $1.46 per share for the quarter, as compared to net income including discontinued operations of $269.3 million, or $1.91 per share in the same period last year.

Precision continued to focus on leveraging its operational strengths; improving operating margins from continuing operations by 3.4% points over the second quarter on 28% lower year-over-year sales. The lower sales were driven by further aerospace destocking; economic pressures on the general industrial markets, planned downtime of major forging complexes, and seasonal European holidays. However, the company completed the acquisition of Carlton just after the conclusion of the second quarter, which will help it to drive top- and bottom-line results going forward.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (PCP) Precision Castparts Corporation Closes DealsRecently, Precision Castparts Corp. (PCP), a diversified manufacturer of complex metal components and products, has...
2. (AIR) AAR Corporation Produces Weak ResultsYesterday, after market closed, AAR Corporation (AIR) posted discouraging results for the first quarter of...
3. (SYMX) Synthesis Energy Systems Posts Better Numbers for ’09Synthesis Energy Systems (SYMX) recorded improved operating as well as financial performance for the fourth...
4. (SNE) Weak Numbers for Gaming IndustryAugust 2009 data on video game sales reveal disappointing results. Market research company NPD Group...
5. (NAV) Navistar International Hit by Weak Truck MarketNavistar International Corporation (NAV) has showed a net loss of $35 million, or 49 cents...
6. (PCP) Precision Castparts Carlton Forge Works for $850 millionYesterday, Precision Castparts Corp. (PCP) announced its decision to acquire Carlton Forge Works and related...

Search Posts by Tag: PCP | Precision Castparts Corporation | Industrial Goods | Metal Fabrication

RSS Feeds by Tag: PCP | Precision Castparts Corporation | Industrial Goods | Metal Fabrication |

Other Posts by: vitalstocks | RSS Feed for this author