The 2020 Mid-Year Economic Update_long

Day: January 19, 2009

Precision Castparts 3Q Sales Down 3.2%

Precision Castparts Corp., Portland, OR, reported sales for the third quarter were $1.6 billion, a decline of 3.2% over the prior year period. Profit was $239.1 million, down 3%.
Current quarter sales were significantly impacted by the lengthy Boeing strike and flattening demand in the casting and forging aerospace businesses. PCC completed three acquisitions in the quarter.
For the first nine months ended Dec. 28, 2008, sales improved 4.8% to $5.2 billion, compared to the first nine months of fiscal year 2008. Profit for the period increased 10.7% to $784.2 million.
Investment Cast Products
Segment sales increased slightly to $541.5 million in the third quarter, versus $540.9 million for the same period the prior year. Contractual material ...

Report: Wolseley Seeks Cash Infusion

A report from the Sunday Times in England says that global building materials and plumbing distributor Wolseley plc is in talks with investors and private equity groups to raise possibly more than $500 million (converted from British pounds) in what the paper calls a rescue fundraising.
According to the article, a final decision on how much cash is required and whether they will move forward on this will be made in the next three weeks before the end of its financial half year. The distributor will report results next week.
Here is the article.


Parker Hannifin 2Q Sales, Profit Down

Parker Hannifin, Cleveland, OH, reported sales of $2.7 billion for fiscal 2009 second quarter ending Dec. 31, 2008, a decline of 5% from the same quarter a year ago. Profit declined 26.7% to $155.4 million.
"Current quarter results reflect the fact that the global recession has deepened and widened in recent months and creates some uncertainty for the remainder of our fiscal year and throughout calendar 2009," said Don Washkewicz, president and CEO.
Segment Results
In the Industrial North America segment, second-quarter sales increased slightly to $993 million, and operating income declined 24% to $107.6 million, compared with the same period a year ago.
In the Industrial International segment, second-quarter sales declined ...

Fastenal Sales Up 13.5% in 2008

Fastenal Company, Winona, MN, reported sales for the year ended Dec. 31, 2008, were $2.34 billion, an increase of 13.5% from the prior year. Profit was up to $279.7 million, an increase of 20.2%.
In 2008, Fastenal opened 161 new stores, an increase of 7.5%.
Although the distributor had overall growth, its same-store sales saw a slowdown in the last three months of the year.
In the fourth quarter, Fastenal reported sales of $544.9 million, up 5% over the prior-year period. Profit increased 11.3% to $62.5 million.
More details on Fastenal's year-end results in the Fastenal report

Aviation, Power & Marine Acquired By Private Equity Firm

Aviation, Power & Marine, Inc., a Boynton Beach, FL-based distributor of aeroderivative gas turbine engine parts and related services, has been acquired by private equity firm Pfingsten Partners, L.L.C., Deerfield, IL. AP&M provides parts and services to  a variety of end markets: electrical utility and power generation, naval and commercial marine propulsion, heavy industrial manufacturing, and oil and gas exploration and transmission. AP&M also coordinates gas turbine engine leases and component repair services.
Pfingsten plans to grow the business though expansion into new engine types and brands, domestic and international expansion, increased leased engine placements, and greater penetration of existing market segments.
Under the terms of ...