Precision Castparts' Earnings Slide

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Precision Castparts (PCP Quote) reported on Jan. 20, 2009 that its Q3 FY09 net earnings plunged 3.0%, hurt by a lengthy strike at Boeing (BA Quote). Net income for the quarter declined to $239.10 million or $1.70 per share from $246.50 million or $1.76 per share in Q3 FY08. Net earnings from continuing operations was $236.80 million or $1.69 per share compared to $241.20 million or $1.72 per share a year ago. The latest quarterly results included a restructuring and asset-impairment charge of $11.80 million related to headcount reductions across business segments. The most recent consensus estimate was $1.70 per share.

During Q3 FY09, revenue declined 3.2% to $1.61 billion from $1.67 billion a year ago, negatively impacted by $129.00 million due to strike at Boeing. Revenue from Investment Cast Products inched up marginally to $541.50 million from $540.90 million, helped by a 17.0% year-over-year growth in industrial gas turbine (IGT) sales. Revenue from Forged products, representing 43.5% of total revenue, dropped 8.9% to $702.80 million from $771.60 million, due to lower selling prices of external alloys and higher intersegment sales. Revenue from Fastener Products grew 4.1% to $370.40 million from $355.70 million, driven by the higher sales due to its increased market presence and a sizeable backlog. ...