Forged Products:Forged Products' year-over-year sales improved by 25 percent, climbing to $1.07 billion in the first quarter compared to last year's sales of $853 million. First quarter results included a full quarter of revenues from TIMET, Texas Honing, and Dickson/Aerocraft, compared to only a partial quarter of Dickson/Aerocraft in fiscal 2013. The segment's operating income grew by 37 percent, increasing to $267 million, or 25.1 percent of sales, in the first quarter, from $195 million, or 22.9 percent of sales, a year ago. Lower market-driven pricing of raw material inputs, which comprise approximately 55-60 percent of Forged Products' cost of goods sold, had a significant negative impact on the segment's year-over-year sales. Selling prices of alloy at the segment's three primary nickel conversion mills decreased by approximately $33 million year over year, the falling price of revert and other alloys negatively impacted sales by an additional $21 million, and contractual pass-through pricing declined by approximately $4 million from the same period last year. Like Investment Cast Products, the segment supported commercial aircraft production at levels consistent with aircraft build rates and will benefit from similar upside opportunities as commercial OEMs ramp production, and new aircraft and engine development programs progress. On the power side of the business, both downhole casing and interconnect pipe shipments grew year over year. Contributing to Forged Products' earnings in the quarter was strong performance from TIMET, where operational improvements are being implemented at an accelerated rate, as well as leverage throughout its aerospace manufacturing operations, and performance improvements from the seamless pipe businesses.
Precision Castparts Corp. Reports First Quarter Fiscal 2014 Earnings
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