Second Quarter Fiscal 2014 Highlights
- Record sales of $2.36 billion
- Record EPS (diluted) of $2.90 from continuing operations
- Record consolidated segment operating margin of 27.5%
PORTLAND, Ore., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) delivered continued strong sales and earnings in the second quarter of fiscal 2014, driven by solid commercial aerospace demand, steady recovery in power markets, further top- and bottom-line contributions from TIMET, and unrelenting focus on operational improvements in each of the Company's facilities.
SECOND QUARTER FISCAL 2014 FINANCIAL RESULTSSales for the second quarter of fiscal 2014 set a record at $2.36 billion, an increase of 23 percent over sales of $1.93 billion during the same period last year, reflecting approximately 6 percent organic growth excluding the impact of contractual pass-through pricing and other changes in metal/revert pricing. Consolidated segment operating income showed a 30 percent year-over-year gain, growing to $649 million in the second quarter of fiscal 2014 from $498 million a year ago. In addition, net income from continuing operations (attributable to PCC) improved by 28 percent, moving to $425 million in the quarter versus net income of $332 million in the second quarter of fiscal 2013. Earnings per share (EPS) from continuing operations (attributable to PCC) were $2.90 (diluted, based on 146.5 million shares outstanding), a 28 percent increase over last year's $2.27 (diluted, based on 146.4 million shares outstanding). Including discontinued operations, total net income (attributable to PCC) for the second quarter of fiscal 2014 was $424 million, or $2.89 per share (diluted). BUSINESS HIGHLIGHTS Investment Cast Products Sales for the Investment Cast Products segment totaled $608 million in the second quarter of fiscal 2014, versus $612 million last year, with a 5 percent year-over-year gain in operating income, moving to $219 million, or 36.0 percent of sales, compared to $209 million, or 34.2 percent of sales in the second quarter of fiscal 2013. Contractual pass-through pricing declined by approximately $3 million year over year. In the quarter, large commercial OEM and spares sales grew by 10 percent and 4 percent, respectively, tempered by a decline in regional/business jet and military spares activity. Going forward, accelerated sales gains will be driven by further demand from production rate step-ups on existing platforms, continued frequency of takeoffs and landings, and the segment's increased penetration on the new development engines for re-engined narrow-body aircraft platforms, which are scheduled to ramp up quickly into full production. In addition, industrial gas turbine (IGT) OEM and spares sales, basically flat year over year, still maintained very high production levels. The segment continues to deliver record operating margins by consistently implementing new initiatives to reduce costs and improve productivity on steady, high-volume production.