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 pass-through accounted for $18.1 million. Steady improvement in industrial gas turbine sales helped offset that decline.
Forged Products Sales in the Forged Products segment totaled $702.8 million for the third quarter, a decline of 8.9% over third quarter a year ago. Contractual material pass-through comprised $75.1 million, compared to $90.2 million a year ago.
The segment focused on steady improvements in productivity, yields, material utilization, scrap, and other key production metrics to overcome the significant downturn in sales. In the fourth quarter, the headwinds from the Boeing strike are expected to continue, as well as the lost leverage and inefficiencies related to the 29,000-ton press in Houston, which should be back on line at the beginning of the first quarter of fiscal 2010.
Fastener Products Segment sales grew by 4.1% to $370.4 million in a year-over-year comparison. The Boeing strike accounted for a decrease in sales of $8 million, while including the addition of Airdrome and Fatigue Technology increased aerospace fastener sales 11.4%.