First Quarter Fiscal 2014 Highlights
- Record EPS (diluted) of $2.88 from continuing operations
- Record consolidated segment operating margin of 27.2 percent
- Continued strong cash generation
PORTLAND, Ore., July 25, 2013 (GLOBE NEWSWIRE) -- Stable shipments in line with high aircraft build rates, solid power markets, and heightened acquisition activity during fiscal 2013 fueled 20 percent year-over-year sales growth for Precision Castparts Corp. (NYSE:PCP) in the first quarter of fiscal 2014, with increased earnings reflecting strong leverage in the base businesses and further acceleration in the rapid integration of TIMET and other recent acquisitions.
First Quarter Fiscal 2014 Financial HighlightsTotal sales in the first quarter of fiscal 2014 were $2.37 billion, improving by 20 percent over sales of $1.97 billion a year ago. Consolidated segment operating income was $644 million, a 25 percent increase compared to $515 million last year. Net income from continuing operations (attributable to PCC) in the first quarter grew by 23 percent to $424 million over net income of $344 million in the first quarter of fiscal 2013. Earnings per share (EPS) from continuing operations (attributable to PCC) were $2.88 (diluted, based on 147.1 million shares outstanding), compared to $2.35 (diluted, based on 146.4 million shares outstanding) in the same period last year. Including discontinued operations, total net income (attributable to PCC) for the first quarter of fiscal 2014 was $436 million, or $2.96 per share (diluted). Business Highlights Investment Cast Products: Total sales for Investment Cast Products in the first quarter of fiscal 2014 totaled $616 million, versus $620 million in last fiscal year's first quarter, with operating income improving to $213 million, or 34.6 percent of sales, compared to $206 million, or 33.2 percent of sales, a year ago. The segment continued to see stable aerospace schedules in line with the current high levels of commercial OEM production and is solidly positioned to benefit as build rates accelerate on key platforms, and new aircraft and engine development programs advance. In addition, driven by increased OEM demand, industrial gas turbine (IGT) sales grew by 7 percent year over year. Contractual pass-through pricing declined by approximately $2 million year over year. During the quarter, the Company's Portland, Oregon, locations addressed union organizing activity, which negatively impacted sales by approximately $12 million and operating income by $8 to $9 million. The Portland workers voted not to unionize, and delinquencies will be shipped out over the next two quarters. Despite this disruption, the segment's operations delivered record operating margins by improving productivity, controlling their cost structures, and effectively leveraging high volumes across their fixed assets.