Precision Castparts Q1 Results Down, Miss Estimates; Sees Higher Sales In FY16

(RTTNews) - Precision Castparts Corp. (PCP), a supplier of complex machined and fabricated components, Tuesday reported that its first-quarter net income attributable declined to $399 million from last year's $483 million. The prior year results have been restated for discontinued operations.

Earnings per share from continuing operations dropped 14 percent to $2.87 from $3.32 last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $3 per share for the quarter.

Net sales declined 4 percent to $2.412 billion from $2.52 billion last year. Analysts were looking for sales of $2.51 billion.

Organic sales went down 2 percent on a constant currency basis year-over-year, but it increased 1 percent excluding oil & gas and other non-IGT power generation markets.

Looking ahead, the company said its fiscal 2016 guidance has been adjusted for interest expense impact of bond issuance.

For fiscal 2016, the company expects earnings per share from Continuing Operations between $12.25 and $13.152, representing a decline of 3 percent and a growth of 4 percent.

Sales would be between $10 billion and $10.4 billion, flat to up 4 percent from last year.

Analysts expect earnings of $12.77 per share on sales of $10.20 billion for the year.