Precision Castparts (PCP) said second-quarter earnings rose 96% from a year ago, led by an increase in sales in all four of its segments.
The Portland, Ore.-based company posted net income of $154.8 million, or $1.13 a share, in the latest quarter, compared with $79.1 million, or 58 cents a share, a year ago. The current quarter's results include a pretax charge of $4.8 million, or 3 cents a share, for stock-based compensation.
The results also included a gain on the sale of the company's joint venture interest in a ring-rolling operation in Mexico, which was recorded in discontinued operations. Analysts polled by Thomson First Call were estimating earnings of 91 cents a share.
Second-quarter revenue rose about 52% to $1.32 billion as against analysts' estimate of $1.27 billion.
Revenue from the investment cast products rose 10% to $441 million, fueled by greater aerospace and aftermarket sales. Revenue from forged products more than doubled to $574.8 million, fueled by the acquisition of special metals, as well as aftermarket aerospace sales. Fastener products saw a 22% rise in revenue to $244.9 million. The company's revenue from industrial products segment saw a 3% rise to $58.6 million.
''We are adding the necessary capacity to handle the increased production loads,'' the company said. ''By the first half of calendar 2007, we will have increased large structural titanium capacity, added six new airfoil casting furnaces, and completed installation of a second isothermal press, providing as much as $190.0 million of incremental sales, which is needed to support current contractual volume. In the same time frame, Special Metals' new rotary forge will be up and running in Dunkirk, New York, delivering increasing yields.''
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