Profile: Precision Castparts Corp. (PCP.N)

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, automotive, armament, medical and other applications; nickel alloys and product forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; specialty alloys, waxes for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; low-pressure sewer systems; gas monitoring systems for the power generation industry, and metalworking tools for the fastener market and other applications. PCC operates through three segments: Investment Cast Products, Forged Products and Fastener Products. In September 2009, the Company completed its acquisition of Carlton Forge Works, a manufacturer of seamless rolled rings for critical aerospace applications, in Paramount, California, and Arcturus Manufacturing Corporation, a hammer forging operation in Oxnard, California.

On December 4, 2008, it acquired Hackney Ladish Holding Corp. (Hackney Ladish). On September 30, 2008, PCC acquired Airdrome Holdings, LLC (Airdrome), which consists of Airdrome Precision Components (APC) and AF Aerospace Ltd. (AFA). On November 21, 2008, the Company acquired Fatigue Technology, Inc. (FTI).

Investment Cast Products

The Company's Investment Cast Products segment includes PCC Structurals, PCC Airfoils and Specialty Materials and Alloys Group (SMAG). These operations manufacture investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament and other industrial applications. The segment also provides alloys and waxes to PCC’s investment casting operations, as well as to other investment casting companies. PCC manufactures structural investment castings, as well as airfoil investment castings used in jet aircraft engines. It manufactures investment castings for jet aircraft engine program in production or under development by its customers. The Company also manufactures structural and airfoil investment castings for IGT and aero-derivative engines used for electric power generation. In addition, it makes investment castings for use in the automotive, medical prosthesis, satellite launch vehicle and general industrial markets.

PCC structural castings business manufactures stainless steel, nickel-based superalloy and titanium investment castings, as well as a variety of smaller structural castings. PCC manufactures precision cast airfoils, which include the stationary vanes and rotating blades used in the turbine section of jet aircraft engines. It also manufactures investment castings used in IGT engines. The Company's IGT products consist of airfoil castings and high-temperature combustion hardware used in land-based gas turbines designed for electrical power generation. In addition, it manufactures structural and airfoil castings for aero derivative gas turbine engines, which are also used for power generation, as well as for other commercial and military land and marine-based applications. The Company is manufacturing a number of titanium components for armament systems, including the BAE lightweight howitzer.

The Company's SMAG operation provides alloys and waxes to its investment casting operations, as well as to other companies with investment casting or other foundry operations. SMAG comprises Cannon Muskegon, M. Argueso & Company (Argueso). Cannon Muskegon principally produces alloys used by PCC and manufacturers of investment castings.

The Company competes with Alcoa Inc. and Ladish Co.

Forged Products

PCC manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are primarily derived from the same engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and other airframe structural components. The Company manufactures forged components from 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 are used on both commercial and military aircraft, and include landing gear beams, bulkheads, wing structures, engine mounts, struts and tail flaps, and housings. The Company 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 industrial gas turbine engines, as well as shafts, cases, and compressor and turbine discs for marine gas engines. It also produces a variety of mechanical and structural tubular forged products, primarily in the form of extruded, seamless pipe, for the domestic and international energy markets, which include coal and nuclear power plants, co-generation projects, and retrofit and life-extension applications. For naval defense applications, PCC supplies forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves and structural applications.

The Company competes with Ladish Co., Fortech, S.A., Thyssen AG, Alcoa Inc., Schultz Steel Company, Vallourec & Mannesmann Tubes, Sumitomo Corporation, Allegheny Technologies, Inc., Carpenter Technology Corporation and Haynes International, Inc.

Fastener Products

PCC, through its subsidiary, SPS Technologies, develops and manufactures fasteners, fastener systems and precision components primarily for aerospace and automotive applications. Majority of Fastener Products sales come from the same aerospace customer base served by the Company's Investment Cast Products and Forged Products segments. The balance of the segment's sales is derived from automotive and general industrial markets, including farm machinery, construction equipment, machine tools, medical equipment, appliances and recreation.

The Company's aerospace fasteners are manufactured from nickel and titanium alloys, and are used on airframes, jet engines, aircraft wheels and brakes, landing gear assemblies, floor boards and hydraulic systems. These fasteners 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 variety of bolts, nuts, plate nuts, inserts, washers and other precision components. The Company is developing several alloys for applications requiring high strength, elevated temperature, corrosion resistance and/or lighter weight. These include AEREX, MULTIPHASE, MP35N and MP159 high-temperature nickel-based alloys.

The Company has also developed a variety of fasteners and related components or tools for use in aerospace and industrial applications. These products are marketed under the brand names of CHERRYBUCK, CHERRYMAX, E-NUT, FLEXLOC, FORCEMATE, FORCETEC, GROMEX, HI-LIFE, MADE FROM SOLID, MAXIBOLT, STA-LOK and TUKLOC. It also holds licenses to use various trademarks and technology in the manufacture of its fasteners and related components. These licensed trademarks include SLEEVBOLT, TORX, TORX-PLUS, TAPTITE, MORTORQ and MAThread.

The Company competes with Alcoa Inc., LISI and McKecknie.