Precision Castparts profit up on stronger sales
Metal parts maker Precision Castparts Corp (PCP.N) posted a higher quarterly profit on Thursday as it sold more parts to plane makers, sending its shares up 4 percent.
The supplier of components for airplane engines and power plant turbines said profit for the first quarter of fiscal 2012 rose to $286 million, or $1.97 per share, from $235 million, or $1.64 per share a year earlier.
Analysts expected $1.95 a share, according to Thomson Reuters I/B/E/S.
Quarterly sales rose 16 percent to $1.68 billion.
Precision Castparts is "clearly benefiting from the rising tide of higher flight activity and rising commercial aircraft production," said Matt Collins, industrials analyst with Edward Jones.
The company, which earlier this month said it would pay $900 million to acquire aircraft supplier Primus International, is poised to expand its exposure on key commercial plane programs.
For example, Collins noted that Precision has about $6 million of components on each Boeing (BA.N) 787, from engine parts to fasteners.
Precision Castparts shares were up 4 percent at $162.32 in late morning trading. The stock has risen 16 percent this year.
© Copyright Thomson Reuters 2024. All rights reserved.