UPDATE: Precision Castparts Q3 Profit Misses Estimates

reported a weaker-than-expected fiscal third-quarter profit. The Portland, Oregon-based company posted quarterly earnings of $445 million, or $3.11 per share, compared to $433 million, or $2.96 per share, in the year-ago period. Earnings from continuing operations rose to $3.09 per share from $2.94 per share. Its revenue climbed to $2.46 billion from $2.34 billion. However, analysts were estimating earnings of $3.17 per share on revenue of $2.48 billion. Sales for Investment Cast Products segment rose 4%, while Forged Products sales gained 2% in the quarter. Sales for Airframe Products segment climbed 11% y/y in the quarter. Its operating income margin narrowed to 27.2% from 28%. "Our third quarter performance included some clear achievements, but we also faced some real challenges in several of our end markets," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. (PCC). "On the plus side, we made solid progress on our production and development aircraft and engines programs, growing 6 percent year over year. In addition, our 7 percent growth in industrial gas turbines outpaced the market, given our higher content on new and upgrade platforms, as well as providing a steady supply of spares to the installed base. For the full year, Precision Castparts projects earnings of $12.80 to $12.90 per share. Precision Castparts shares rose 1.71% to close at $208.75 yesterday.