Precision Castparts Corp. () is a Portland, Oregon, United States-based Fortune 500 company. The industrial goods and metal fabrication company manufactures cast metal parts for use in the aerospace, industrial, defense, and automobile industries. In 2008 they ranked 444th on the Fortune 500 list, and 11th in the Aerospace and Defense Industry.^[1] On June 1 2007, PCC replaced MedImmune on the S&P 500 stock index.^[2]

History

Precision Castparts (PCC) was founded by Joseph B. Cox on April 1, 1953.^[3] 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.^[3]

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.^[3] The following year the company was taken public and began work with Boeing.^[3] 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.^[3] Over the next few years PCC acquired other companies such as Airfoils, and AETC Limited of Britain.^[3] In 1989 PCC was listed on the New York Stock Exchange, trading as PCC.^[3]

Acquisitions continued in the 1990s with Advanced Forming Technology, ACC Electronics, Quamco, Astro Punch, and Olofsson Corporation.^[3] 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.^[4][3] 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.^[3]

Precision received tax breaks from local governments in the Portland metro area in 2006 in exchange for a plant expansion.^[5] In 2007, the company purchased Cherry Aerospace to expand their fastener business.^[6]

Recent financials

Listed on the New York Stock Exchange as PCP, the company is part of the S&P 400 MidCap and S&P 1500 Super Comp indexes.^[9] In 2007, Precision was added to the S&P 500 stock index.^[2] 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.^[10]

Products

The company manufactures a variety of parts for the aerospace industry including many jet engine components.^[9] 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.^[9] They are considered a leader in the manufacturing of both jet engine airfoils and gas turbines used for generating electricity.^[11] The company generates $1.5 million in revenue for each Boeing 787 Dreamliner built.^[12]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.^[9] PCC?s main markets are the United States, Europe, and Asia.^[9]

References