"In addition to all the upside potential in our current operations, the acquisition of Timet will be a significant needle mover, a true accelerator for Precision Castparts on many different fronts," Donegan said. "We successfully faced the challenge of getting approval from three independent regulatory agencies and closed the transaction only six weeks after the announcement of the acquisition. Now we are moving out on all fronts to extract value from Timet's worldwide operations. To begin with, we have multiple opportunities to improve existing Timet manufacturing operations, applying our manufacturing disciplines, driving out costs, and positioning those operations for improved sales. On top of that, the synergies of our two companies are remarkable: better vertical integration, increased revert availability and utilization, higher volumes across our forging assets, and additional market penetration, among others. At this point, we believe synergies of $80-100 million are well within reach over the first 24 to 36 months. The integration has already begun in full force, and the plans for future value creation are actively being rolled out throughout all of our manufacturing operations."
At the end of the third quarter, cash was $483.3 million, with debt at $3.8 billion.
Precision Castparts is hosting a conference call to discuss the above financial results today at 7:00 a.m. Pacific Time.
NOTE: The presentation charts are immediately available on the Company's web site: http://www.precast.com/investors/presentationsIndividuals interested in monitoring the webcast should paste the following address into their browser for access to the live conference link: http://w.on24.com/r.htm?e=401807&s=1&k=3CE08C4FD94B64AC6FB54576C29194FF This link will provide both audio and video through the Internet connection. You may use the following link to check your computer system's compatibility any time prior to the call: http://webcast.premiereglobal.com/clients/premiere/help/help.html For Webcast assistance, please dial (888) 569-3848 or (719) 785-6626.
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