LOS ANGELES Gains in its
aerospace and industrial gas turbine units helped push
Precision Castparts Corp.s (PCC) fiscal fourth-quarter
earnings up 24 percent.
The Portland, Ore.-based
producer of aircraft, energy and industrial products posted net
income of $336.1 million for the three months ended April 1,
compared with $271 million in the year-ago quarter, on sales
that were up 16.3 percent to $1.95 billion.
For the full year, net income
was up 20.8 percent at $1.22 billion, while sales rose 16
percent to $7.21 billion.
"The commercial aerospace market
is robust and shows no sign of slowing down for several years,"
Mark Donegan, PCCs chairman and chief executive officer,
said in a statement. He added that the ramp-up of Boeing
Co.s new 787 Dreamliner programwhich was delayed
for three years before the first Dreamliner was delivered in
Septemberis "just beginning to get exciting."
PCC also disclosed that it faced
a "headwind" during the quarter due to a Jan. 30 explosion and
fire at its Muskegon, Mich.-based Cannon-Muskegon Group unit
that shut down a melting furnace for casting nickel ingot for
"almost a month." The company also said it was incurring higher
maintenance expenses associated with the upcoming installation
of casting furnaces "to meet growing OEM (original equipment
manufacturer) and aftermarket demand."
Aerospace made up 64 percent of
PCCs fourth-quarter sales, up from 57 percent last year,
while the power market eased to 21 percent, down slightly from
22 percent, the company said. General industrial markets fell
to 15 percent of sales from 21 percent previously.
Donegan said two "significant
orders" with major oil and gas producers, along with several
smaller orders, will provide about $200 million in incremental
sales in fiscal 2013. He also pointed out that PCCs
purchase of Janesville, Wis.-based tubular producer RathGibson
LLC, which closed two days into the first fiscal quarter, will
help the company "offer more comprehensive bids" on projects
with severe drilling environments. RathGibsons
specialties include nickel alloy products.
Among PCCs operating
segments, the biggest percentage gain was posted in fasteners,
which now includes the former Primus International Inc., a
Bellevue, Wash.-based supplier of components and assemblies to
the aerospace industry, which PCC bought for $900 million in
August. The Primus acquisition reflected PCCs growing
involvement in airframes and aerostructures, a departure from
its traditional engine-related markets. The fastener
segments operating profit in the quarter jumped by 32.9
percent to $139.5 million on a 41.5-percent boost in sales to