Precision Castparts Provides Weak Q3 Guidance

(RTTNews) - Precision Castparts Corp (PCP), a maker of metal components and products, on Thursday provided weak third-quarter guidance, citing lower demand in oil and gas end markets, further aerospace engine destocking at a single customer, year-end customer inventory management actions, and an extended equipment upgrade.

The company projects third-quarter earnings from continuing operations of $3.05 to $3.10 per share and sales of $2.42 billion to $2.47 billion.

Analysts polled by Thomson Reuters expect the company to report earnings of $3.41 per share on sales of $2.56 billion for the quarter.

The company said that in the long term, prospects appear favorable.

"Despite these challenges, the momentum in our aerospace business continues, and we have already begun to deliver the inventory deferred in the third quarter and expect to realize those sales in the fourth quarter," said Mark Donegan, the company's chief executive officer.