Precision Castparts Corp. (NYSE: PCP) is a Portland, Oregon, United States-based Fortune 500 company. The industrial goods and metal fabrication company manufactures cast metal parts for use in the aerospace, industrial, defense, and automobile industries. In 2009 they ranked 362nd on the Fortune 500 list, and 11th in the Aerospace and Defense Industry.[2] On June 1, 2007, PCC replaced MedImmune on the S&P 500 stock index.
Precision Castparts Corp. (PCC) is a manufacturer of complex metal components and products, provides investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine (IGT) applications. The Company also provides investment castings and forgings for general industrial, armament, medical and other applications; nickel alloys and mill forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; seamless pipe for coal-fired, industrial gas turbine, and nuclear power plants, as well as oil and gas applications; fasteners for automotive and general industrial markets; specialty alloys for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; metal-injection-molded and ThixoFormed parts for automotive and other markets; grinder pumps and affiliated components for low pressure sewer systems; critical auxiliary equipment and gas monitoring systems for the power generation industry, and metalworking tools for the fastener market and other applications.
On September 30, 2009, the Company completed the acquisition of Carlton Forge Works, a manufacturer of seamless rolled rings for critical aerospace applications, offers nickel, titanium, and steel rolled rings across the range of product sizes in the industry. On January 15, 2010, the Company acquired 49% equity interest in Yangzhou Chengde Steel Tube Co., Ltd (Chengde), a manufacturer of seamless, extruded pipe for boiler applications in coal-fired power plants, as well as pipe and tubing for other energy-related applications, such as compressed natural gas.
Investment Cast Products
The Company's Investment Cast Products segment manufactures investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament, unmanned aerial vehicles and other industrial applications. The segment also provides alloys to PCC’s investment casting operations, as well as to other investment casting companies. The Company’s structural castings business manufactures diameter stainless steel, nickel-based superalloy and titanium investment castings, as well as a range of medium and small structural castings. These castings are stationary components that form portions of the fan, compressor, combustor and turbine sections of a jet aircraft engine. Structural investment castings are sold primarily as original equipment to jet aircraft engine manufacturers.
The Company manufacture precision cast airfoils, such as the stationary vanes and rotating blades used in the turbine section of jet aircraft engines. This part of the engine is considered the hot section, where temperatures may exceed 2,400 degrees Fahrenheit. The Company’s investment cast products segment includes an operation that produces alloys primarily used by PCC and other manufacturers of investment castings. Several of these alloys are patented and trademarked, specifically formulated for the casting of directionally solidified and single crystal airfoils that operate in high-temperature, high-stress engine environments. This operation supplements the Company’s other ingot-making furnaces located in Portland, Oregon, and Minerva, Ohio, and its internal supply of nickel-based alloy for investment casting is managed through this group of facilities. The alloys produced also serve such diverse markets as medical, recreational and general industrial.
Forged Products
The Company manufactures forged components from sophisticated titanium and nickel-based alloys for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs and cases. Its airframe structural components, made of titanium, steel and other alloys, are used on both commercial and military aircraft and include landing gear beams, bulkheads, wing structures, engine mounts, struts and tail flaps and housings. It also provides forged products for use in power plants worldwide, as well as in oil and gas industry applications. These products include discs, spacers and valve components for land-based steam turbine and IGT engines, as well as shafts, cases, and compressor and turbine discs for marine gas engines. The Company also produces a range of mechanical and structural tubular forged products from steel, primarily in the form of extruded, seamless pipe, for the domestic and international energy markets, which include coal, industrial gas turbine, and nuclear power plants, co-generation projects, and retrofit and life-extension applications. For naval defense applications, it supplies forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves and structural applications.
Fastener Products
The Company’s aerospace fasteners and related components are manufactured from a range of nickel, titanium, aluminum and steel alloys and are used on airframes, jet engines, aircraft wheels and brakes, landing gear assemblies, floor boards and hydraulic systems. They are found in such flight- and safety-critical areas as the wing-to-fuselage, the stabilizers-to-fuselage and the engine-to-wing connections on an aircraft, as well as the airfoil-to-disc and disc-to-shaft connections on a jet engine. These fasteners and related components are not only incorporated in new aircraft builds but are also integrally involved in the replacement cycle, particularly in aircraft engine and wheel and brake applications. The product line includes a range of bolts, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components, including but not limited to sheet metal fabrications and precision machined components for airframe applications. These include AEREX, MULTIPHASE, MP35N and MP159 high-temperature nickel-based alloys.
The Company has also developed a range of fasteners and related components or tools for use in aerospace and industrial applications. These technically advanced products are marketed under the brand names of CHERRYBUCK, CHERRYMAX, E-NUT, FLEXLOC, FORCEMATE, FORCETEC, GROMEX, HI-LIFE, MADE FROM SOLID, MAXIBOLT, STA-LOK, TELLEP and TUKLOC. It also holds licenses to use trademarks and technology in the manufacture of its fasteners and related components. These licensed trademarks include HI-LITE, HI-LOK, SLEEVBOLT, TORX, TORX-PLUS, TAPTITE, MORTORQ and MAThread.
The Fastener products segment also includes businesses that produce refiner plates and screen cylinders for use in the pulp and paper industry. It manufactures metal-injection-molded and ThixoFormed components for numerous industrial applications and produce grinder pumps and affiliated components for low pressure sewer systems for residential and commercial applications and auxiliary equipment and gas monitoring systems utilized in the power generation industry. The Company also manufactures a range of thread-rolling dies, trimming dies, pins and steel and carbide forging tools for fastener production, principally for aerospace, automotive and general industrial and other applications.
The Company competes with Ladish Co., Fortech, S.A., Alcoa Inc., Schultz Steel Company, Firth Rixson Limited Vallourec & Mannesmann Tubes, LISI, Sumitomo Corporation, Allegheny Technologies, Inc., Carpenter Technology Corporation, Haynes International, Inc., Firth Rixson Limited and Thyssen AG.
Precision Castparts (PCC) was founded by Joseph B. Cox on April 1, 1953.[4] Cox was owner of Oregon Saw Chain and in 1949 had started a casting operation with assistant general manager Ed Cooley also working on the project. In 1953 Cox separated the two companies and PCC was formed, moving into a new larger facility in 1955, and incorporating the following year with Ed Cooley as one of the owners.
Then in the early 1980s they expanded their facilities with several additions. In 1985 the company acquired a titanium foundry in Europe and built a new plant the next year in France. Over the next few years PCC acquired other companies such as Airfoils, and AETC Limited of Britain. In 1989 PCC was listed on the New York Stock Exchange, trading as PCP.
Acquisitions continued in the 1990s with Advanced Forming Technology, ACC Electronics, Quamco, Astro Punch, and Olofsson Corporation. In 1997 PCC bought J&L Fiber Services, Pittler Maschinenfabrik GmbH, and Schlosser Casting Company. Over the next ten years the company continued to grow through acquiring other companies around the world in places such as Romania, Scotland, Switzerland, and Australia as well as companies within the United States. They have also built or joined with partners to build plants in many countries around the world, including India, the Czech Republic, Hungary, China, and Malaysia.
Precision received tax breaks from local governments in the Portland metro area in 2006 in exchange for a plant expansion. In 2007, the company purchased Cherry Aerospace to expand their fastener business. After ranking as the 568th largest U.S. company by Fortune in 2007, the company became a Fortune 500 the next year when it ranked 444, and rose to 362 in 2009.
OVERALL
Beta: 1.46
Market Cap (Mil.): $22,407.07
Shares Outstanding (Mil.): 143.45
Annual Dividend: 0.12
Yield (%): 0.08
FINANCIALS
PCP Industry Sector
P/E (TTM): 22.97 24.13 18.89
EPS (TTM): 1.10 -- --
ROI: 13.42 4.99 4.10
ROE: 15.55 17.05 7.13
Recent financials
Year Revenue Net Profit
2004: $1,913 $117
2005 $2,919 ($1.7)
2006 $3,546 $350
2007 $5,361 $633
2008 $6,852 $987
Name Age Since Current Position
Donegan, Mark 54 2003 Chairman of the Board, Chief Executive Officer
Hagel, Shawn 44 2008 Chief Financial Officer, Senior Vice President, Assistant Secretary
Hackett, Steven 52 2010 Executive Vice President, President - Investment Cast Products
Buck, Kenneth 50 2010 Executive Vice President, President - Forged Products
Stein, Kevin 44 2009 Executive Vice President, President - Fastener Products Division
Cooke, Roger 62 2008 Senior Vice President, General Counsel, Secretary
Lienhart, Ross 57 2008 Senior Vice President, President - Structurals Casting Operations
Snowden, Joseph 53 2006 Senior Vice President; President of Special Metals Corporation
Ericksen, John 48 2008 Senior Vice President - Corporate Training and Organizational Development
Gaddis, Byron 53 2000 Vice President, Chief Information Officer
Blackmore, Steven 48 2008 Vice President, Treasurer, Assistant Secretary
Pattee, Russell 46 2008 Vice President, Corporate Controller, Assistant Secretary
Becker, Roger 56 2008 Vice President - Corporate Taxes, Assistant Secretary
Pulley, Kirk 41 2004 Vice President - Strategic Planning and Corporate Development
Ellis, Mark 50 2009 Vice President - Internal Audit
Rothmeier, Steven 64 1994 Director
Graber, Don 66 1995 Director
Oechsle, Vernon 67 1996 Director
Murphy, Daniel 62 2007 Director
Schmidt, Rick 60 2007 Director
Lyles, Lester 64 2008 Director
Wambold, Richard 59 2009 Director
COMPANY ADDRESS
Precision Castparts Corp
4650 S.W Macadam Avenue
Suite 400
Portland OR 97239
Precision Castparts Corp. (PCC) is a manufacturer of complex metal components and products, provides investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine (IGT) applications. The Company also provides investment castings and forgings for general industrial, armament, medical and other applications; nickel alloys and mill forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; seamless pipe for coal-fired, industrial gas turbine, and nuclear power plants, as well as oil and gas applications; fasteners for automotive and general industrial markets; specialty alloys for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; metal-injection-molded and ThixoFormed parts for automotive and other markets; grinder pumps and affiliated components for low pressure sewer systems; critical auxiliary equipment and gas monitoring systems for the power generation industry, and metalworking tools for the fastener market and other applications.
On September 30, 2009, the Company completed the acquisition of Carlton Forge Works, a manufacturer of seamless rolled rings for critical aerospace applications, offers nickel, titanium, and steel rolled rings across the range of product sizes in the industry. On January 15, 2010, the Company acquired 49% equity interest in Yangzhou Chengde Steel Tube Co., Ltd (Chengde), a manufacturer of seamless, extruded pipe for boiler applications in coal-fired power plants, as well as pipe and tubing for other energy-related applications, such as compressed natural gas.
Investment Cast Products
The Company's Investment Cast Products segment manufactures investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament, unmanned aerial vehicles and other industrial applications. The segment also provides alloys to PCC’s investment casting operations, as well as to other investment casting companies. The Company’s structural castings business manufactures diameter stainless steel, nickel-based superalloy and titanium investment castings, as well as a range of medium and small structural castings. These castings are stationary components that form portions of the fan, compressor, combustor and turbine sections of a jet aircraft engine. Structural investment castings are sold primarily as original equipment to jet aircraft engine manufacturers.
The Company manufacture precision cast airfoils, such as the stationary vanes and rotating blades used in the turbine section of jet aircraft engines. This part of the engine is considered the hot section, where temperatures may exceed 2,400 degrees Fahrenheit. The Company’s investment cast products segment includes an operation that produces alloys primarily used by PCC and other manufacturers of investment castings. Several of these alloys are patented and trademarked, specifically formulated for the casting of directionally solidified and single crystal airfoils that operate in high-temperature, high-stress engine environments. This operation supplements the Company’s other ingot-making furnaces located in Portland, Oregon, and Minerva, Ohio, and its internal supply of nickel-based alloy for investment casting is managed through this group of facilities. The alloys produced also serve such diverse markets as medical, recreational and general industrial.
Forged Products
The Company manufactures forged components from sophisticated titanium and nickel-based alloys for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs and cases. Its airframe structural components, made of titanium, steel and other alloys, are used on both commercial and military aircraft and include landing gear beams, bulkheads, wing structures, engine mounts, struts and tail flaps and housings. It also provides forged products for use in power plants worldwide, as well as in oil and gas industry applications. These products include discs, spacers and valve components for land-based steam turbine and IGT engines, as well as shafts, cases, and compressor and turbine discs for marine gas engines. The Company also produces a range of mechanical and structural tubular forged products from steel, primarily in the form of extruded, seamless pipe, for the domestic and international energy markets, which include coal, industrial gas turbine, and nuclear power plants, co-generation projects, and retrofit and life-extension applications. For naval defense applications, it supplies forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves and structural applications.
Fastener Products
The Company’s aerospace fasteners and related components are manufactured from a range of nickel, titanium, aluminum and steel alloys and are used on airframes, jet engines, aircraft wheels and brakes, landing gear assemblies, floor boards and hydraulic systems. They are found in such flight- and safety-critical areas as the wing-to-fuselage, the stabilizers-to-fuselage and the engine-to-wing connections on an aircraft, as well as the airfoil-to-disc and disc-to-shaft connections on a jet engine. These fasteners and related components are not only incorporated in new aircraft builds but are also integrally involved in the replacement cycle, particularly in aircraft engine and wheel and brake applications. The product line includes a range of bolts, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components, including but not limited to sheet metal fabrications and precision machined components for airframe applications. These include AEREX, MULTIPHASE, MP35N and MP159 high-temperature nickel-based alloys.
The Company has also developed a range of fasteners and related components or tools for use in aerospace and industrial applications. These technically advanced products are marketed under the brand names of CHERRYBUCK, CHERRYMAX, E-NUT, FLEXLOC, FORCEMATE, FORCETEC, GROMEX, HI-LIFE, MADE FROM SOLID, MAXIBOLT, STA-LOK, TELLEP and TUKLOC. It also holds licenses to use trademarks and technology in the manufacture of its fasteners and related components. These licensed trademarks include HI-LITE, HI-LOK, SLEEVBOLT, TORX, TORX-PLUS, TAPTITE, MORTORQ and MAThread.
The Fastener products segment also includes businesses that produce refiner plates and screen cylinders for use in the pulp and paper industry. It manufactures metal-injection-molded and ThixoFormed components for numerous industrial applications and produce grinder pumps and affiliated components for low pressure sewer systems for residential and commercial applications and auxiliary equipment and gas monitoring systems utilized in the power generation industry. The Company also manufactures a range of thread-rolling dies, trimming dies, pins and steel and carbide forging tools for fastener production, principally for aerospace, automotive and general industrial and other applications.
The Company competes with Ladish Co., Fortech, S.A., Alcoa Inc., Schultz Steel Company, Firth Rixson Limited Vallourec & Mannesmann Tubes, LISI, Sumitomo Corporation, Allegheny Technologies, Inc., Carpenter Technology Corporation, Haynes International, Inc., Firth Rixson Limited and Thyssen AG.
Precision Castparts (PCC) was founded by Joseph B. Cox on April 1, 1953.[4] Cox was owner of Oregon Saw Chain and in 1949 had started a casting operation with assistant general manager Ed Cooley also working on the project. In 1953 Cox separated the two companies and PCC was formed, moving into a new larger facility in 1955, and incorporating the following year with Ed Cooley as one of the owners.
Then in the early 1980s they expanded their facilities with several additions. In 1985 the company acquired a titanium foundry in Europe and built a new plant the next year in France. Over the next few years PCC acquired other companies such as Airfoils, and AETC Limited of Britain. In 1989 PCC was listed on the New York Stock Exchange, trading as PCP.
Acquisitions continued in the 1990s with Advanced Forming Technology, ACC Electronics, Quamco, Astro Punch, and Olofsson Corporation. In 1997 PCC bought J&L Fiber Services, Pittler Maschinenfabrik GmbH, and Schlosser Casting Company. Over the next ten years the company continued to grow through acquiring other companies around the world in places such as Romania, Scotland, Switzerland, and Australia as well as companies within the United States. They have also built or joined with partners to build plants in many countries around the world, including India, the Czech Republic, Hungary, China, and Malaysia.
Precision received tax breaks from local governments in the Portland metro area in 2006 in exchange for a plant expansion. In 2007, the company purchased Cherry Aerospace to expand their fastener business. After ranking as the 568th largest U.S. company by Fortune in 2007, the company became a Fortune 500 the next year when it ranked 444, and rose to 362 in 2009.
OVERALL
Beta: 1.46
Market Cap (Mil.): $22,407.07
Shares Outstanding (Mil.): 143.45
Annual Dividend: 0.12
Yield (%): 0.08
FINANCIALS
PCP Industry Sector
P/E (TTM): 22.97 24.13 18.89
EPS (TTM): 1.10 -- --
ROI: 13.42 4.99 4.10
ROE: 15.55 17.05 7.13
Recent financials
Year Revenue Net Profit
2004: $1,913 $117
2005 $2,919 ($1.7)
2006 $3,546 $350
2007 $5,361 $633
2008 $6,852 $987
Name Age Since Current Position
Donegan, Mark 54 2003 Chairman of the Board, Chief Executive Officer
Hagel, Shawn 44 2008 Chief Financial Officer, Senior Vice President, Assistant Secretary
Hackett, Steven 52 2010 Executive Vice President, President - Investment Cast Products
Buck, Kenneth 50 2010 Executive Vice President, President - Forged Products
Stein, Kevin 44 2009 Executive Vice President, President - Fastener Products Division
Cooke, Roger 62 2008 Senior Vice President, General Counsel, Secretary
Lienhart, Ross 57 2008 Senior Vice President, President - Structurals Casting Operations
Snowden, Joseph 53 2006 Senior Vice President; President of Special Metals Corporation
Ericksen, John 48 2008 Senior Vice President - Corporate Training and Organizational Development
Gaddis, Byron 53 2000 Vice President, Chief Information Officer
Blackmore, Steven 48 2008 Vice President, Treasurer, Assistant Secretary
Pattee, Russell 46 2008 Vice President, Corporate Controller, Assistant Secretary
Becker, Roger 56 2008 Vice President - Corporate Taxes, Assistant Secretary
Pulley, Kirk 41 2004 Vice President - Strategic Planning and Corporate Development
Ellis, Mark 50 2009 Vice President - Internal Audit
Rothmeier, Steven 64 1994 Director
Graber, Don 66 1995 Director
Oechsle, Vernon 67 1996 Director
Murphy, Daniel 62 2007 Director
Schmidt, Rick 60 2007 Director
Lyles, Lester 64 2008 Director
Wambold, Richard 59 2009 Director
COMPANY ADDRESS
Precision Castparts Corp
4650 S.W Macadam Avenue
Suite 400
Portland OR 97239