(RTTNews) - Tuesday, metal components maker Precision Castparts Corp. (PCP: News ) reported a decline in second quarter profit from a year ago reflecting lower sales impacted by aerospace destocking, as well as economic pressures on the general industrial markets, planned downtime of major forging complexes, and seasonal European holidays.

The Portland, Oregon-based company's third quarter net income attributable to Precision Castparts shareholders decreased to $207.3 million or $1.46 per share from $269.3 million or $1.91 per share in the same period last year. The company took a pre-tax impairment charge of $11.6 million for the quarter, related to certain assets of discontinued operations.

On average, sixteen analysts polled by Thomson Reuters expected the company to earn $1.63 per share for the quarter. Analysts' estimates typically exclude special items.

The company that serves aerospace, power generation, and general industrial markets recorded total net income from continuing operations of $218.3 million or $1.54 per share, down from $265.1 million or $1.88 per share in the year ago quarter.

Precision Castparts operating income for the quarter was $337.0 million or 25.9% of sales, compared to $404.1 million or 22.5% of sales a year ago.

Quarterly sales declined to $1.302 billion from $1.799 billion in the prior year period. Analysts estimated revenues of $1.39 billion for the quarter.
Precision Castparts said the year-over-year sales decline reflected the negative effects of foreign exchange of approximately $29 million, lower material pass-through of approximately $37 million, and lower selling prices of external alloys at the company's three primary mills of approximately $62 million.

Segment wise, the company's Investment Cast Products sales declined to $447.4 million from $612.0 million a year ago. This segment generated operating income of $136.0 million for the quarter, compared to $156.1 million for the year ago period.

Forged Products segment faced strong downward pressures as sales plunged to $516.7 million from $781.1 million a year ago. Sales for the segment were negatively impacted by lower contractual material pass-through pricing and lower selling prices of external alloy sales from the segment's three primary mills. Continued inventory destocking reduced year-over-year aerospace sales for the segment by more than 30% and general industrial sales in excess of 40%. Operating income and margins were $120.0 million or 23.2% of sales for the quarter, compared to $153.1 million or 19.6% of sales a year ago.

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