Precision Castparts Corp.
|Traded as||NYSE: PCP
S&P 500 Component
|Industry||Aerospace and Defense|
|Founded||April 1, 1953, Portland, Oregon|
|Key people||Mark Donegan Chairman & CEO|
$ 7.2 billion (FY 2011)
|Operating income||$ 1.8 billion (FY 2011)|
|Net income||$ 1.2 billion (FY 2011)|
|Total assets||$ 10.5 billion (FY 2011)|
|Total equity||$ 8.3 billion (FY 2011)|
|Employees||21,500 (April 2012)|
|Divisions||PCC Airfoils, PCC Structurals|
|Subsidiaries||Wyman-Gordon Forgings, Special Metals Corporation|
Precision Castparts Corp. (NYSE: PCP) is a Portland, Oregon, United States-based industrial goods and metal fabrication company that 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. On June 1, 2007, PCC replaced MedImmune on the S&P 500 stock index. It is one of only two Fortune 500 companies headquartered in Oregon.
Precision Castparts (PCC) was founded by Joseph B. Cox on April 1, 1953. 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.
1960s & 1970s
Beginning in the 1960s, the company began to secure contracts to provide parts for jet engines. In 1967 they were awarded a contract by General Electric to provide parts for their TF39 engine and another contract with Pratt & Whitney. The following year the company was taken public and began work with Boeing. By the 1970s PCC was also casting parts for body part replacements such as hips and knees.
1980s to current
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 including SPS Technologies. One of the company's largest purchases was the $990 million acquisition of Wyman-Gordon Company in 1999. 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.
In May 2011, toxic chemicals such as nitrogen dioxide and hydrochloric acid were unexpectedly released at the company's titanium plant on Johnson Creek Blvd. Although four people were hospitalized nobody was injured from the fumes, firefighters had difficulty shutting down the plant. PCC announced the purchase Primus International Inc. in July 2011 in a $900 million deal. Primus made parts for airplanes, selling their products to both Airbus and Boeing. In May 2012 PCC acquired Centra Industries Inc. a builder of aircraft parts for Boeing, Lockheed Martin, Northrop Grumman, Spirit AeroSystems, Mitsubishi Heavy Industries and Bombardier, they Have two plants based in Cambridge, Ontario, Canada. Texas Honing was purchased by PCC in October 2012, followed by the $2.9 billion acquisition of Titanium Metals in November 2012.
The Toxic 100 Air polluters index from the University of Massachusetts lists Precision Castparts as the number one air polluter in the U.S. in the August 2013 edition, which the company called a flawed study.
Listed on the New York Stock Exchange as PCP, the company was part of the S&P 400. In 2007, Precision was moved to the S&P 500 stock index. As seen in the table above, PCP's revenue increased by 52 percent in 2007, to $5.4B from $3.5B in 2006. Total debt increased by 29 percent, from $677 million in 2006 to $873 million in 2007. The increases in revenue and debt were due in part to a pair of acquisitions in February 2007 - GSC Foundries, Inc. (GSC), formerly a competitor to PCP in producing aluminum and steel structural investment castings, and Cherry Aerospace LLC (Cherry), a manufacturer of aerospace blind rivets and blind bolts.
The company manufactures a variety of parts for the aerospace industry including many jet engine components. PCC also makes medical prostheses and parts for other industrial applications such as in the oil industry, the gas industry, and for use in power generating turbines for producing electricity. They are considered a leader in the manufacturing of both jet engine airfoils and gas turbines used for generating electricity. The company generates $1.5 million in revenue for each Boeing 787 Dreamliner built. Other products made from the various metals are fasteners, products for the paper industry, parts used in the defense industry, and parts for the automotive industry. PCC’s main markets are the United States, Europe, and Asia.
- "Precision Castparts 2012 Annual Report, Form 10-K, Filing Date May 31, 2012". secdatabase.com. Retrieved June 8, 2012.
- Precision Castparts. Fortune 500: 2009. CNNMoney.com. Retrieved on April 20, 2009.
- Precision Castparts to join S&P 500. CNNMoney.com. Retrieved on May 31, 2007.
- History. Precision Castparts. Retrieved on February 28, 2008.
- Giegerich, Andy. FTC orders Precision to sell Albany metals plant. Portland Business Journal, November 19, 1999.
- Read, Richard (July 10, 2011). "Portland-based Precision Castparts announces $900 million deal to buy Primus International". The Oregonian.
- Zuckerman, Peter. Precision's growth will bring 400 new jobs. The Oregonian, September 25, 2006.
- Hunsberger, Brent. Precision Castparts buys maker of fasteners. The Oregonian, January 9, 2007.
- "Fortune 500 2007". CNNMoney.com. April 30, 2007. Retrieved 2009-07-20.
- Learn, Scott; Feulner, Natalie (August 6, 2011). "After a night of tension, confusion and a toxic cloud, Precision Castparts in Oregon says it will make changes to prevent a repeat". The Oregonian (Portland, Oregon).
- "Centra Industries Announces Sale to Precision Castparts Corp.". Bloomberg. 2012-05-07. Retrieved 2013-11-21.
- Siemers, Erik (October 8, 2012). "Precision Castparts acquires Texas Honing". Portland Business Journal. Retrieved October 8, 2012.
- Read, Richard (November 9, 2012). "Precision Castparts to acquire Titanium Metals in $2.9 billion deal". The Oregonian. Retrieved November 9, 2012.
- Read, Richard (August 26, 2013). "Portland's Precision Castparts ranked nation's top industrial air polluter in University of Massachusetts study". The Oregonian. Retrieved 9 November 2013.
- News Staff (August 29, 2013). "Precision Castparts: Pollution study ‘deeply flawed'". KOIN 6. Retrieved 9 November 2013.
- Annual Report: 2006. Precision Castparts. Retrieved on February 28, 2008.
- 2007 SEC 10-K Form, page 26. Precision Castparts. Retrieved on May 28, 2008
- Precision Castparts Yahoo! Finance. Retrieved on February 28, 2008.
- PCP 2007 10-K, p. 24 via Wikinvest
- Strom, Shelly. Precision Castparts: Energy markets drive sales. Portland Business Journal, July 19, 2001.
- Read, Richard. Boeing's newest bird takes a giant leap forward. The Oregonian, March 18, 2007.