In the third quarter of fiscal 2012, Precision Castparts Corporation achieved record EPS, generated solid top line growth in a quarter with four fewer manufacturing days, and continued to effectively leverage increased aerospace and power sales, establishing a solid foundation for further sales growth and margin expansion going forward.
In the third quarter of fiscal 2012, Precision Castparts Corporation sales grew by 14% YoY, generating USD 1.817 billion of sales in the quarter as compared to USD 1.590 billion a year ago. The company also improved consolidated segment operating income for the quarter, up 19% to USD 459.0 million or 25.3% of sales, versus USD 386.9 million or 24.3% of sales, in the third quarter of fiscal 2011. In addition, PCC took earnings per share to a new record level, achieving USD 2.12 per share (diluted, based on 145.6 million shares outstanding) on net income from continuing operations (attributable to PCC) of USD 308.2 million for the third quarter of fiscal 2012, compared to last year’s USD 1.80 per share (diluted, based on 144.1 million shares outstanding) on net income from continuing operations (attributable to PCC) of USD 258.7 million. Including discontinued operations, net income (attributable to PCC) was USD 2.11 per share (diluted), versus USD 1.78 per share (diluted) a year ago.
Mr Mark Donegan chairman & CEO of Precision Castparts Corp said that "Our third quarter results solidly demonstrate the level of performance we can achieve at current order rates and provide a clear line of sight to what's possible in the future. Moving forward, the issue is strictly one of timing. The contracts are in place. The capacity is in place. As the orders pick up, and we move the product through our factories, our results will improve even further. We have plenty of opportunity for improvement in all of our operations, with significant upside as we leverage the upcoming acceleration in sales."
He added that "We continue to aggressively attack all the opportunities in our recent acquisitions. Primus, a major player on the 787, is steadily improving operating income and provides fertile ground for meaningful synergies as we begin to supply more casting, forging, and fastener products internally and continue to exploit the rich revert stream. Tru Form has come out of the blocks strong in a short period of time, with operating margins in line with some of our Forged Products aerospace operations, and we have much more opportunity to improve this business. Like our base critical fastener businesses, PB Fasteners is lagging 787 build rates, but will generate solid results as its schedules begin to catch up with current 787 production and then ramp further. In addition, Rollmet and KLAD have already been instrumental in our winning some major oil and gas competitions. All of these operations are performing at or ahead of the expectations we set at the time of acquisition and are providing us a long runway for the creation of shareholder value in the years ahead."
