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Precision Castparts profit rises but misses views

PORTLAND, Ore. -- Precision Castparts Corp. said Thursday its fiscal second-quarter net income rose 13 percent on demand for commercial airplane parts and the benefit of recent acquisitions.

But results fell short of analysts' expectations mostly because of the shutdown of a major facility in the three-month period that ended Sept. 30.

The company earned $332.7 million, or $2.29 per share, compared with $294.7 million, or $2.07 per share, a year earlier.

Revenue rose 8 percent to $1.93 billion.

Analysts polled by FactSet expected a profit of $2.34 per share on revenue of $1.97 billion.

Sales in the company's airframe products segment jumped 36 percent to $556.9 million. Without the contribution of two acquired companies, core sales rose 15 percent on increased aircraft orders by airlines, including stepped-up production of Boeing's new 787, or Dreamliner. Its investment cast products segment results were also boosted by 787 production and demand for spare parts.

Growth in both segments offset a decline in sales at the forged products segment.

The company said a previously announced unplanned shutdown of its 29,000-ton forging press in Houston early in the quarter had a large negative impact on earnings. The outage at the parts-forging press occurred three weeks before the July 1 end of the fiscal first quarter. Repairs lasted several weeks into the second quarter.

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