"Our businesses are poised to seize the opportunities we have created and to meet or exceed our expectations," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "The current and future prospects for further growth in the commercial aerospace market are solid. Along with our strong positions on every major production aircraft platform, we have increased our content on the new development engine programs. We are also being asked by many of the OEMs to move further across the value stream, linking many of our capabilities and offering more integrated product packages. In addition, we continue to compete aggressively to gain share across our entire portfolio.
"Our position in power end markets is also well-established. Industrial gas turbines are expected to be a favored source of power generation, which should yield solid upside for spares sales going forward, and we are closely involved with various OEMs on new and retrofit designs, which are expected to roll out over the next couple of years. The demand for interconnect pipe, particularly to supply coal projects in China and India, is recovering rapidly, with strong demand over the next two years. We are also in active discussions with oil & gas customers on sizeable, downhole projects with potential for significant sales expansion going forward. As always, we are dedicated to driving all this increased production volume efficiently across our assets to deliver the highest returns possible.
"At this moment in time, the opportunities for this Company are better than ever," Donegan said. "Our position on current high-production commercial aircraft is solid. We have increased the quantity and value of components in the new development engines. As we planned, we are very close to achieving a good balance between our interconnect pipe and oil & gas production. Interconnect orders are currently recovering at a strong rate, which will lead to a sustained sales trajectory moving forward, and we are on the verge of significant oil & gas orders that will establish a solid base load for our forging operations. In addition, our recent acquisitions are delivering tremendous sales and earnings growth, with more expected to come, and our solid balance sheet enables us to pursue a strong list of candidate companies to further expand and strengthen our market position and deliver greater shareholder value in the years ahead."