"We continue to extract and deliver value from all of our operations," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "We are achieving strong earnings growth on stable commercial aircraft schedules, gaining share on new airframe and engine development programs, maintaining a steady drumbeat to meet or exceed our cost-reduction targets, and continuing to set an aggressive pace in integrating our new acquisitions. The course we set for ourselves over the past decade is now playing out as we expected and delivering strong benefits to our shareholders.
"As we expand our reach in key markets, we are leveraging both our legacy businesses and our acquisitions to achieve further profitable growth for the Company," Donegan said. "Our base operations continue to deliver strong incremental margins. In addition, the targeted acquisitions we have made in recent years are capturing improvements at an accelerated rate and are yielding solid results. Most notably, TIMET has already proven to be a major contributor to earnings by rapidly adopting the PCC tool kit throughout its operations, but we have a long runway of both top- and bottom-line opportunities out ahead of us.
"Looking ahead, we have secured solid positions on all major production and development commercial aircraft programs, and our casting and forging operations will ramp up or level out as the OEM schedules dictate," Donegan said. "Our fastener production schedules still do not align with current commercial production rates, but the orders are accelerating, and we have great potential for further growth. In addition, our aerostructures business has only just begun to uncover the upside opportunities in its base and acquired companies. Beginning in the back half of calendar 2014, many of our operations will be ramping up to handle increased volumes, as the new aircraft and engine development programs roll out. At the same time, we are aggressively pursuing further upside in power markets with our industrial gas turbine, interconnect pipe, downhole casing, and other oil and gas products. On every front, the Company remains focused on executing at the highest levels and fully capturing the potential that lies ahead."