Global Fastener News

SPS Produces Strong Quarter for Precision Castparts

John Wolz

SPS Technologies boosted Precision Castparts Corp. for the fourth quarter of fiscal 2004 and for the fiscal year, despite “challenging” conditions in its core aerospace and power generation markets. PCC reported solid operating performance from base businesses and “by rapid realization of expected synergies” from the SPS acquisition in December 2003.
PCC”s fiscal Q4 sales totaled $705.1 million, a 39.4% increase over the same period a year ago. Consolidated segment operating income in the quarter totaled $86.3 million, or 12.2% of sales and up from $77.5 million, or 15.3% of sales, for the fourth quarter of fiscal 2003.
Fourth quarter results from continuing operations represent the first full quarter of SPS operations. These businesses generated sales of $192.4 million and operating income of $18.1 million, or 9.4%.
Fiscal 2004 sales were $2,174.7 million, up 4.7%.
In the fourth quarter of fiscal 2004, Investment Cast Products’ sales totaled $296.8 million, with operating income of $53.2 million, or 17.9%, versus segment sales of $258.0 million and operating income of $49.6 million, or 19.2%, a year ago. The segment’s higher sales during the quarter were principally due to the addition of SPS’ Specialty Materials and Alloys Group (SMAG).

In its first full quarter as a PCC business, Fastener Products reported an operating income of $12.1 million, or 8.0%, on $150.9 million of sales. For the year, which includes approximately 17 weeks of activity since PCC acquired SPS on December 9, 2003, Fastener Products’ operating income was $13.5 million, or 7.4% of sales, on $181.3 million of sales. During the quarter, Fastener Products gained market share at airframe, aircraft engine and automotive industries.

Industrial Products’ sales for the fourth quarter were $42.1 million, with operating income of $5.2 million, or 12.4%, compared with fiscal 2003 sales of $34.2 million and operating income of $4.8 million. The segment’s higher sales and lower margins were principally due to the addition of SPS’ Precision Tool Group. SPS’ Precision Tool Group achieved sales of $7.7 million and operating income of $0.5 million, or 6.5%. Web: precast.com. �2004 FastenerNews.com