Jul. 21--Low demand from its aerospace industry customers pushed first-quarter sales at Precision Castparts down $400 million, or 23.8 percent, from same period last year.

Precision earned $240.5 million, $1.70 per diluted share, in the quarter. In the same quarter a year ago, its profit totaled $275.9 million, $1.96 a share.

Sales to GE, Boeing and its other aerospace customers fell $125 million, 15 percent in the quarter compared to the same period a year ago.

"In line with what we stated at the end of last quarter, inventory destocking across our aerospace operations was going to impact sales both in the first and second quarter," said Mark Donegan, Precision's CEO and Chair. "As we look beyond Q2, this situation stabilizes, with the order rate aligning more closely with the current build rates, and our aerospace sales returning close to pre-destocking levels by the end of the fiscal year."

A consensus of stock analysts had expected earnings in the $1.75 per share and sales of $1.62 billion. Nevertheless, Precision seems to be handling the economic downturn better than most. While some other companies are struggling to service oversized debt accrued in the boom years, Precision's total debt remains low at just $306 million. The company's cash-on-hand actually increased more than 13 percent during the quarter to finish at $632.1 million.

"Our balance sheet continues to be rock solid," Donegan said. "Even after contributions of more than $190 million to our pension plans early in the first quarter, we increased our cash position. We believe that our strong capacity for cash generation will enable us to take advantage of attractive opportunities that will reap great long-term benefits."

Precision employs more than 19,000 worldwide.

--Jeff Manning

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