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Precision Castparts Corp. (PCP)

- NYSE
  • Thu, May 21, 11:35 PM
    • Precision Castparts (NYSE:PCP) declares $0.03/share quarterly dividend, in line with previous.
    • Forward yield 0.05%
    • Payable June 29; for shareholders of record June 5; ex-div June 3.
    | Comment!
  • Fri, May 15, 5:07 PM
    • Berkshire Hathaway (BRK.A, BRK.B) owned 6.2M shares of 21st Century Fox (NASDAQ:FOXA) at the end of Q1, up from 4.7M at the end of Q4, the quarter in which the stake was established.
    • Warren Buffett's firm also upped its stake in Precision Castparts (NYSE:PCP) to 4.2M shares from 2.9M, and in Phillips 66 (NYSE:PSX) to 7.5M from 6.6M. Berkshire's positions in IBM, Wells Fargo, Deere, and U.S. Bancorp were modestly increased. Dan Loeb cut his Phillips 66 stake in Q1.
    • Berkshire cut its stake in oil/gas equipment maker National Oilwell (NYSE:NOV) to 2M shares from 5.3M at the end of Q4. Positions in MasterCard, Visa, Charter, WABCO, Bank of New York, Liberty Global, and Viacom were modestly cut.
    • No new positions were taken in Q1, nor were any positions fully liquidated. Wells Fargo ($25.6B stake at the end of Q1) remains Berkshire's biggest holding, followed by Coca-Cola ($16.2B), IBM ($12.8B), American Express ($11.8B), and Wal-Mart ($5B).
    • Berkshire's Q1 13F filing
    • Two weeks ago: Notes from Berkshire's annual meeting
    | 18 Comments
  • Wed, May 13, 7:34 AM
    • Adjusted earnings per share of $2.94 vs. $3.27 in the same quarter a year ago.
    • Sales by segment: Investment Cast Products +3%; Forged Products -4%; Airframe Products +1%.
    • Returned $729M during the quarter; $1.6B returned during FY15.
    • "We faced sizable challenges in our oil and gas and pipe markets in Q4, which clearly had a negative impact on our financial results," said CEO Mark Donegan. "We expect demand softness in these markets to continue through this fiscal year."
    • As a result, the company sees FY16 EPS in a range of $12.50-$13.40 (down from $15.50-$16.50), with sales of $10B-$10.4B.
    • FQ4 results
    | Comment!
  • Wed, May 13, 5:32 AM
    • Precision Castparts (NYSE:PCP): FQ4 EPS of $2.94 misses by $0.03.
    • Revenue of $2.5B (-0.8% Y/Y) beats by $30M.
    • Press Release
    | Comment!
  • Tue, May 12, 5:30 PM
  • Wed, Apr. 15, 7:27 AM
    • Precision Castparts (NYSE:PCP) will book up to $363M in pretax charges to write down certain businesses and jobs cuts amid weak demand.
    • "We have developed strong capabilities in the oil & gas and power pipe markets; however, near-term demand trends remain uncertain," announced Chief Executive Mark Donegan.
    • The metal-products maker said it would take an impairment charge of $125M-$135M on its oil-and-gas and power-pipe businesses, book a $210M-$220M charge related to its 50% stake in Yangzhou Chengde Steel Tube, and cut its head count, resulting in a pretax charge of about $8M.
    • Due to lower-than-expected sales volume and forex impacts, Precision now expects FQ4 earnings (excluding the charges) to be $2.90-$2.95 a share, well below a $3.21 consensus.
    | Comment!
  • Mon, Feb. 23, 10:33 AM
    • Goldman Sachs is making waves on Wall Street in early trade after downgrading the Aerospace sector to Neutral from Attractive. While the firm still views Aerospace as a long-term growth industry, it says that downside risk has been heightened after substantial outperformance.
    • As part of the sector view change, Goldman also downgraded Boeing (BA -2.7%) to Sell from Neutral and Precision Castparts (PCP -2.6%) to Neutral from Buy.
    • Boeing: "With a sustained lower fuel price and pockets of global growth volatility, the demand equation for aircraft could worsen, and Boeing shares are highly correlated to new aircraft orders. New aircraft supply has now doubled from the trough, and growth rates should slow." Goldman also cited concerns over large increases in deferred production of 787 jets and a potentially "less comfortable" medium-term free cash framework.
    • Precision Castparts: "PCP...has now grown organically at a slower pace than the supply chain average for 11 of the last 12 quarters, which could continue for at least the next few given its Oil & Gas exposure and no visibility into the end of engine destocking." Goldman also added that the company's inventory growth and lack of converting 100% of net income to free cash are "concerning."
    | 26 Comments
  • Thu, Feb. 12, 5:09 PM
    • Precision Castparts (NYSE:PCP) declares $0.03/share quarterly dividend, in line with previous.
    • Forward yield 0.06%
    • Payable March 30; for shareholders of record March 6; ex-div March 4.
    | Comment!
  • Thu, Jan. 22, 7:13 AM
    • Net income of $445M, or $3.09 per diluted share vs. $433M, or $2.94 per diluted share in the same quarter a year ago.
    • Sales by segment: Investment Cast Products +3.8%; Forged Products +2.2%; Airframe Products +10.5%.
    • The company sees FY15 EPS from continuing operations of $12.80-$12.90. FY16 EPS is expected to be in a range of $15.50-$16.50.
    • FQ3 results
    | Comment!
  • Thu, Jan. 22, 5:36 AM
    • Precision Castparts (NYSE:PCP): FQ3 EPS of $3.09 misses by $0.08.
    • Revenue of $2.46B (+5.1% Y/Y) misses by $20M.
    • Press Release
    | Comment!
  • Wed, Jan. 21, 5:30 PM
  • Fri, Jan. 16, 12:45 PM
    | Comment!
  • Fri, Jan. 16, 9:11 AM
    | 1 Comment
  • Fri, Jan. 16, 7:45 AM
    • Precision Castparts (NYSE:PCP) is down 3.5% premarket after announcing that lower demand in the oil & gas markets negatively impacted its third quarter fiscal year 2015 sales and earnings.
    • The company now expects FQ3 sales to be in the range of $2.42B-$2.47B and diluted EPS of $3.05-$3.10 vs. analysts’ estimates of $2.6B and $3.41, respectively.
    • SEC Form 8-K
    | Comment!
  • Thu, Jan. 15, 9:55 AM
    • Keybanc has downgraded Precision Castparts (PCP -1.2%) to Hold from Buy citing the lack of near term catalysts.
    • "As we look into 2015...we will begin to contemplate the possibility of a sentiment shift in both the commercial aerospace and defense cycles, while also taking into consideration evolving end market conditions as a result of falling crude oil prices," says Keybanc.
    | Comment!
  • Nov. 18, 2014, 4:35 PM
    • Precision Castparts (NYSE:PCP) declares $0.03/share quarterly dividend, in line with previous.
    • Forward yield 0.05%
    • Payable Dec. 29; for shareholders of record Dec. 5; ex-div Dec. 3.
    | Comment!
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Company Description
Precision Castparts Corp is a manufacturer of complex metal components and products that provides investment castings, forgings and fasteners/fastener systems for critical aerospace and power applications.