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Precision Castparts Profit Up 20 Percent In 3Q

PORTLAND, Ore. (AP) â¿¿ Precision Castparts Corp. said Thursday that its fiscal third-quarter net income rose nearly 20 percent on recent acquisitions and strength in its aerospace business, but the results fell short of analysts' expectations.

Shares of the company, based in Portland, Ore., dipped in trading on the news.

The metal parts maker said that it earned $307.3 million, or $2.11 per share, for the quarter that ended Jan. 1. That's up from $256.5 million, or $1.78 per share, for the same period last year.

Total revenue rose by 14 percent to $1.82 billion, with gains across all its business lines. But the company reported notably strong revenue increases from its fastener business, due to recent acquisitions, and aerospace sales, due in part to production for the Boeing 787.

The company said its margins shrank due to higher costs, which ate into its profitability for the period.

Analysts polled by FactSet anticipated the company would earn $2.38 per share for the quarter on revenue of $2.04 billion.

Analysts anticipated the company would earn $2.21 per share for the quarter on revenue of $1.91 billion, according to FactSet.

Precision Castparts CEO Mark Donegan said that the quarter provides a look at what is possible for the company in the future.

"Moving forward, the issue is strictly one of timing," Donegan said. "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,"

Shares of Precision Castparts fell $5.45, or 3.1 percent, to $170.83 by midday.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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