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

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Recently, Precision Castparts Corp. (PCP), a diversified manufacturer of complex metal components and products, has completed its acquisition of Carlton Forge Works in Paramount, California. Carlton is a leading manufacturer of seamless rolled rings of nickel, titanium and steel for utilization primarily in aircraft engine (80%) and gas turbine (20%) applications. Precision Castparts has also acquired Arcturus Manufacturing Corporation, a hammer forging operation in Oxnard, California.  Precision acquired both Carlton and Arcturus for $850 million. The acquisitions are all-cash deals and are financed primarily through current cash balances and small levels of debt. The transactions will be included in Precision’s Forged Products segment, which accounted for about 42% of the company’s sales in the last quarter of fiscal 2009. Precision generated about 24% of its margins from this segment. Management expects the acquisitions to be immediately accretive to earnings.  Precision is among the leading manufacturers of ...

For Immediate Release

Chicago, IL – August 28, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Electric (GE), JPMorgan Chase & Co. (JPM), United Technologies Corp. (UTX), Tyco International (TYC) and Precision Castparts Corp. (PCP).

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Here are highlights from Thursday’s Analyst Blog:

GE to Sell Security Business

General Electric (GE) is arranging to sell its security business, which makes alarms, surveillance systems and other safety products, and hopes to attract bids in the range of $2 billion for the unit. This move represents GE’s strategy

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Yesterday, Precision Castparts Corp. (PCP) announced its decision to acquire Carlton Forge Works and related entities for $850 million. Carlton, with one facility in Paramount, CA, is a leading manufacturer of seamless rolled rings for critical aerospace applications. Carlton is a key supplier for Boeing 787 and Airbus XWB. Precision Castparts will also acquire Arcturus Manufacturing Corporation, a hammer forging operation, as a part of this transaction.  The acquisition, which is expected to be completed in the third quarter of fiscal 2010, will further strengthen PCP’s forging capabilities. The transaction is expected to be immediately accretive to the company’s earnings. Precision Castparts derived 43.6% of its fiscal 2009 revenue from the Forged Products segment. The company is one of the leading manufacturers of forged components for the aerospace and power generation markets. The company has been expanding its Forged Products business through regular acquisitions. The previous ...

For Immediate Release

Chicago, IL - May 12, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tekelec Inc. (TKLC), AstraZeneca (AZN), Precision Castparts Corp. (PCP), Teva Pharmaceuticals, Inc. (TEVA) and Agrium Inc. (AGU).

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Here are highlights from Monday's Analyst Blog:

Tekelec Valuation Raised

We maintain our Buy rating with a higher valuation target for Tekelec Inc. (TKLC), a leading provider of signaling and performance solutions. This follows first quarter 2009 financial results which were better than our estimates. We believe the company may

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Precision Castparts Corp. (PCP) had a pretty darn good Fiscal `09 Fourth Quarter, especially in light of what's coming down these days. While Net Sales of $1.6 billion were off by 9.2%, Gross Profit rose by 0.8% to $498.9 million, and the Gross Margin improved from 28.0% to 31.1%.S,G&A Expense rose by 24.6% to $99.7 million; as a percent of Sales, it went from 4.5% to 6.2%. Although Operating Income declined by 3.8%, the Operating Margin rose from 23.5% to 24.9%. There were no Restructuring/Impairment Costs in Q4-09 as opposed to $6.1 million last year. Net Interest Expense declined by 43.3% to $3.4 million. The Income Tax Rate went from 34.4% down to 33.6%. Net Income from Continuing Operations was off by just 0.4% to $263.0 million and the associated Net Margin climbed from 15.0% to 16.4%.The bottom line of all this is that ...

At the end of the third quarter of 2008, Airbus and The Boeing Company (BA) reported a combined total of 7,534 aircraft in backlog and, at that time, they were delivering at an annualized rate of 752 aircraft. On that basis, it would take some 10 years to deliver all the aircraft on order. Of the stated backlog, 458 shipsets were for the Airbus A350 XWB and 895 were for the Boeing 787 -- neither of which is yet in production (787 deliveries may start before the next decade, while A350 deliveries should start by the middle of the next decade).Complicating matters is the ongoing machinists (IAM) strike against Boeing as well as the threat by that company's white-collar engineers and technical employees (who are members of SPEEA) to go on strike early in 2009, which could shut Boeing down entirely.  In addition, there is historical ...

When you think of Oregon, you don't normally think of the stock market. However, Portland is the home of a couple of well known Fortune 500 companies. Here are some interesting facts about Oregon:1. Oregon has no sales tax.2. It produces 95% of the domestic hazelnuts in the United States.3. It is the third largest producer of wine in the U.S. with 303 wineries.4. It is the largest producer of softwood lumber in the U.S.5. It has one of the largest salmon-fishing industries in the world.7. Portland has the largest number of breweries of any city in the world.7. Oregon has the 27th largest Gross State Product in the U.S.8. Oregon is one of six states with a revenue limit. 9. 55% of state revenues are spent on public education.10. Last year, Moodys increased ...