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Precision Castparts Sales Up 5.9% in 2Q

Precision Castparts Corp., Portland, OR, reported sales in the second quarter fiscal 2009 were $1.82 billion from continuing operations, up 5.9% from a year ago. Profit from continuing operations was up 13.6%.
 
Investment Cast Products
Segment sales totaled $612 million in the second quarter, an increase of 15.2%. Contractual metal pass-through for the quarter comprised $23.8 million of these sales, compared to $23.3 million in the same period last year. Investment Cast Products saw robust aerospace demand during the quarter. This demand has been interrupted by the Boeing strike, is expected to pick up when the Boeing strike ends, and will further accelerate when the 787 moves into production.
 
The industrial gas turbine (IGT) business continues to grow ...

Precision Castparts Corp., Portland, OR, reported sales in the second quarter fiscal 2009 were $1.82 billion from continuing operations, up 5.9% from a year ago. Profit from continuing operations was up 13.6%.
 
Investment Cast Products
Segment sales totaled $612 million in the second quarter, an increase of 15.2%. Contractual metal pass-through for the quarter comprised $23.8 million of these sales, compared to $23.3 million in the same period last year. Investment Cast Products saw robust aerospace demand during the quarter. This demand has been interrupted by the Boeing strike, is expected to pick up when the Boeing strike ends, and will further accelerate when the 787 moves into production.
 
The industrial gas turbine (IGT) business continues to grow at a strong pace, driven by solid demand in the global marketplace and increased customer penetration.
 
Forged Products
Second quarter sales for Forged Products were $781.1 million, versus sales of $813 million last year. Contractual metal pass-through pricing added $78.7 million in the current quarter compared to $87.5 million in the same quarter last year. Lower selling prices of external alloy sales from the segment’s three primary mills, combined with increased intercompany sales, negatively impacted sales in the quarter by $85 million versus a year ago. 
 
In addition, the segment’s revert management operations increased inter-company sales by $40 million year over year, as the Caledonian operations continue to gain traction. Planned maintenance downtime, isothermal forge damage, and Hurricane Ike combined to negatively impact the segment’s operating income by $22 million. Looking forward, Forged Products sales are expected to continue to benefit from increasing seamless pipe sales, which showed solid year-over-year growth of approximately 24%, while maintaining its backlog of global business of more than $900 million. 
 
Aerospace sales in this segment were also strong before the Boeing strike and should solidify after the strike is over and accelerate as the 787 build schedule ramps up. In addition, Forged Products continues to see significant growth opportunities in nickel alloy mill forms for non-aerospace applications, including the oil &gas, chemical/petrochemical, and power generation industries.
 
Fastener Products
Fastener Products’sales increased 13.8%, with sales totaling $426.4 million in the second quarter. Critical aerospace fasteners sales grew 19% year over year. As with the other two segments, Fastener Products’aerospace demand was strong before the Boeing strike, and, at the strike’s conclusion, the segment should expect to see solid demand and increasing production, accelerated by growing 787 production rates.
 
Second quarter sales were impacted by a decline in automotive fastener sales, driven by flagging North American automobile production. The segment continued to produce solid operating income and margin expansion in the quarter, driven by strong operational execution on all fronts, with further opportunities for improvement going forward. In addition, Fastener Products continues to target additional growth opportunities in its aerospace markets. With the recently announced Airdrome Holdings and Fatigue Technology acquisitions, the segment continues to expand its product offerings and open access to new markets and growth opportunities.

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