PRECISION CASTPARTS REPORTS EARNINGS
PRECISION CASTPARTS REPORTS EARNINGS PORTLAND, Ore., April 29 /PRNewswire/ -- Precision Castparts Corp.
(NYSE: PCP) today reported record sales and earnings for the year and record operating earnings for the fourth quarter ended March 29, 1992. William C. McCormick, president and chief executive officer of the Portland-based manufacturer of aircraft engine and aerospace components and parts for the compressor, industrial turbine and health-care industries, said that sales for the year increased 8 percent to $583.3 million from $538.3 million in fiscal 1991. Earnings before income taxes were up 7 percent, from $49.7 million to $53.0 million, and net income increased 42 percent to $47.3 million, or $2.67 per share, from $33.4 million, or $1.92 per share, one year earlier.
Net income for the quarter increased 15 percent, from $9.6 million, or 55 cents per share, in the fourth quarter of fiscal 1991, to $11.0 million, or 62 cents per share, in 1992. Sales for the period declined 3 percent to $144.3 million from $148.5 million a year ago. In reporting results for the quarter and for the year today, McCormick said that the record sales for the year were due to an increase in market share and to the higher volume of castings previously under development. "Fourth-quarter sales were lower than this year's third quarter and last year's fourth quarter primarily because of lower tooling sales, and sales would have been higher except for continuing schedule stretchouts by our major customers," McCormick said. "We are, however, continuing to show margin improvement." Included in results for the year were second- and third-quarter costs of $2.7 million associated with plant closure and disposition and recognition in the third quarter of approximately $10 million of income tax credits arising from research and development expenses in prior years. Even without these unusual items, net income for the year reached an all-time high of $38.6 million, or $2.18 per share. The backlog of orders at March 29, 1992, amounted to $523.5 million, down 13 percent from $600.8 million one year earlier. The decline in the backlog was due to the expiration of multi-year contracts and inventory cycle time reductions by major customers, to reduced demand for spares and to a further slowing of new aircraft engine build rates. "Barring a significant upturn in airline passenger miles and aircraft deliveries, sales for fiscal 1993 are expected to be below those attained in 1992," McCormick said. He also said that the company had undertaken cost reduction efforts in recent months, including workforce reductions at all of its facilities, and that margins should continue to improve. PRECISION CASTPARTS CORP. SUMMARY OF RESULTS (In thousands, except per-share data) Three Months Year Ended March 29: 1992 1991 1992 1991 Net sales $144,300 $148,500 $583,300 $538,300 Cost of goods sold 118,200 123,300 488,300 451,200 Other operating expenses 0 0 2,700 0 Gross margin 26,100 25,200 92,300 87,100 Selling and administrative expenses 10,200 9,900 38,300 34,900 Interest expense 300 1,000 1,000 2,500 Income before provision for income taxes 15,600 14,300 53,000 49,700 Provision for income taxes 4,600 4,700 5,700 16,300 Net income $ 11,000 $ 9,600 $ 47,300 $ 33,400 Net income per common share $ 0.62 $ 0.55 $ 2.67 $ 1.92 (A) During the third quarter of fiscal 1992, the company sold its United Kingdom operations for a pretax loss of $1.8 million, equal to 4 cents per share. During the second quarter of fiscal 1992, the company closed its experimental powder metal facility in Ohio for a pretax loss of $0.9 million, equal to 4 cents per share. (B) During the third quarter of fiscal 1992, the company recorded a $10.1 million tax benefit, equal to 57 cents per share, as a result of reaching agreement with the Internal Revenue Service concerning research and development tax credits for fiscal years 1986, 1987, 1988 and 1989. (C) Based on 17,700,000 and 17,400,000 shares outstanding. -0- 4/29/92 /CONTACT: Roy Marvin of Precision Castparts, 503-653-4840/ (PCP) CO: Precision Castparts Corp. ST: Oregon IN: AIR SU: ERN
SC-LM -- SE001 -- 4218 04/29/92 09:31 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 29, 1992|
|Previous Article:||TREMONT ANNOUNCES FIRST QUARTER 1992 RESULTS|
|Next Article:||REPORT SHOWS CRITICAL SHORTAGE OF DOCTORS FOR OLDER AMERICANS|