PORTLAND, Ore. (AP) â¿¿ Precision Castparts Corp.'s fiscal third-quarter net income rose 10 percent on demand for industrial gas turbines and commercial airplane parts.
The company also said Thursday that its board has approved a $750 million stock repurchase program that runs through June 2015.
The quarterly results fell short of analysts' expectations, but the company's stock still rose more than 2 percent in morning trading.
The Portland, Ore., company said it earned $338 million, or $2.30 per share, compared with $307 million, or $2.11 per share, a year earlier. Revenue rose 13 percent to just over $2 billion.The company said its earnings included 8-cents-per-share in corporate and financing expenses for the acquisition of Titanium Metals Corp. and other acquisitions during the quarter. But it also included gains for the first full-quarter results for some other acquisitions. Excluding a loss from discontinued operations, Precision Castparts made $2.32 per share. Analysts polled by FactSet expected a profit of $2.48 per share on revenue of $2.1 billion. All of the company's business units benefited from growth in commercial aircraft production. Sales in the company's airframe products segment jumped 32 percent to $597.4 million, while Cast Products revenue grew by 5 percent to $612.6 million, including 20 percent growth in Industrial Gas Turbine sales. Forged Products revenue rose 9 percent to $833.2 million. Precision Castparts said it has started integrating Titanium Metals, and it expects cost cuts and other savings of $80 million to $100 million during the next two to three years. Under the share buyback program, the company will buy stock on the open market or in privately negotiated deals. Precision Castparts had 146.2 million shares of stock outstanding at the end of 2012. The company said the program will help to offset dilution from employee stock options and purchases. Shares of Precision Castparts rose $4.30, or 2.3 percent, to $190.58 in morning trading.