Forged ProductsForged Products' sales increased by 39 percent year over year, growing to $1.06 billion in the second quarter of fiscal 2014 from $762 million last year. Second quarter results included a full quarter of Texas Honing and TIMET. The segment improved year-over-year operating income by 65 percent, delivering $258 million of operating income, or 24.3 percent of sales, in the quarter, versus $156 million, or 20.5 percent of sales, a year ago. The segment's three primary nickel conversion mills saw alloy selling prices decline by approximately $37 million year over year, and lower prices for revert and other alloys negatively impacted sales by an additional $17 million. Contractual pass-through pricing in the second quarter was essentially flat compared to last year. For the quarter, Forged Products' aerospace sales grew by approximately 47 percent compared to the same quarter last year. The base businesses improved sales year over year, compounded by the addition of a full quarter of TIMET. Similar to Investment Cast Products, the segment is well-positioned to benefit from ramps in commercial aircraft build rates and the acceleration of the new re-engining narrow-body platforms. In the power market, sales also improved year over year by more than 15 percent, driven by increased demand for downhole casing and interconnect pipe. TIMET continued to outstrip the Company's initial expectations, establishing an improved competitive position going forward. Forged Products achieved these results during the quarter while also successfully meeting the challenge of rebuilding the 29,000-ton forging press in Houston on time and under budget.
Precision Castparts Corp. Reports Second Quarter Fiscal 2014 Earnings
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