Boeing Strike Crimps PCC Fastener Sales
Boeing Strike Crimps PCC Fastener Sales
Jason Sandefur
Precision Castparts Corp. reported sales in its Fastener Products segment grew 4.1% to $370.4 million during the third quarter of fiscal 2009, weakened by the $8 million in sales PCC lost during the 55-day strike at Boeing. Fastener operating income improved 13.1% to $109.4 million during Q3.
“Including the addition of Airdrome and Fatigue Technology during the quarter, Fastener Products” aerospace fastener sales increased approximately 11.4% year over year, due to its increased market presence and a sizeable backlog,” PCC stated. “Further weakness in general industrial markets negatively impacted” the fastener segment’s operational performance.
Fastener sales during the first nine months of fiscal 2009 rose 12% to $1.17 billion, while operating income jumped 27% to $340.5 million.
Companywide Q3 sales dropped 3% to $1.63 billion, which included $129 million in lost sales from the Boeing strike. Net income dipped 1.8% to $236.8 million.
“The fourth quarter looks very similar to the one we just completed,” warned CEO Mark Donegan. “We will continue to be adversely affected by the Boeing strike, with a state of normalcy probably not returning until the first quarter of fiscal 2010.”
During 2008 PCC acquired UK-based Airdrome Holdings LLC (Airdrome), which consists of Airdrome Precision Components (APC) and AF Aerospace Ltd. (AFA). Airdrome manufactures ultra-high tensile bolts, fittings and other fluid conveyance products for aerospace applications.
PCC also acquired Fatigue Technology Inc., which manufactures split sleeves, bushings, rivetless nut plates, blind nuts and fittings utilizing a cold expansion process that extends fatigue life in both metal and composite airframe fastener holes. Web: precast.com �2009 FastenerNews.com
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