Precision Castparts fiscal 2Q profit falls

Precision Castparts posts 23 percent drop in fiscal 2nd-quarter profit on lower sales

• On 12:02 pm EDT, Tuesday October 20, 2009

PORTLAND, Ore. (AP) -- Precision Castparts Corp. said Tuesday its fiscal second-quarter profit fell 23 percent. The maker of metal components and products cited the effects of continued aerospace destocking, economic pressures on industrial markets, downtime at major forging complexes and European holidays.

For the quarter ended Sept. 27, Precision Castparts posted a profit attributable to common shareholders of $207.3 million, or $1.46 per share, down from $269.3 million, or $1.91 per share, for the same quarter last year.

Excluding discontinued operations, the company posted a profit of $1.54 per share in the latest quarter.

Revenue fell 28 percent to $1.3 billion from $1.8 billion. The company said the drop in sales was partially the result of the negative effects of foreign exchange, lower material pass-through and lower selling prices of external alloys at its three main mills.

Analysts polled by Thomson Reuters expected a profit of $1.63 per share on $1.39 billion in revenue.

Shares of Precision Castparts fell $5.13, or 4.9 percent, to $99.59 in midday trading. The stock has ranged from $47.08 to $105.07 over the past year.