S&P Equity Research Picks PCP Focus Stock Of The Week

NEW YORK, Nov. 8, 2010 /PRNewswire/ -- Precision Castparts (PCP: $145) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. PCP carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.  Precision Castparts is widely regarded as the world leader in investment casting for aerospace jet engines and industrial gas turbine applications.  

"Our Strong Buy on PCP is based on improved demand and new product introductions in commercial airspace, overall economic improvement, and strong productivity enhancements put in place by PCP allowing the company to achieve higher earnings on a given level of sales than in the previous economic up-cycle," said Richard Tortoriello, Aerospace & Defense Equity Analyst at Standard & Poor's Equity Research.  "Over the past few months, PCP clients Boeing (BA 71, Buy) and Airbus have announced plans to significantly increase aircraft production rates.  Also, with aircraft utilization rising, we see aftermarkets parts demand for jet engines increasing significantly, as airlines schedule more maintenance and increased utilization spurs demand for more parts."  

Tortoriello expects general industrial sales, about 21% of PCP's total sales, to continue to grow with the overall economy.  Although he sees sales of parts for industrial gas turbines used in electrical power generation, which are about 11% of total sales, growing slowly in fiscal year 2012 (March), due to excess electrical generating capacity in the U.S. and Europe, he also views this market as an area for potential improvement in fiscal year 2013 and beyond.

To view a video of Mr. Tortoriello discussing Precision Castparts, paste the following link into your browser.  

http://link.delvenetworks.com/media/?mediaId=b63ca779129147a0951faf3800373f42&width=480&height=411&playerForm=DelvePlayer

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