(BRK.A), (BRK.B)
Precision Castparts Corporation (PCC), a subsidiary of Berkshire Hathaway, reported robust financial results for the first half of fiscal year 2024, driven by strong demand for its aerospace products.
PCC’s revenues reached $2.7 billion in the second quarter and $5.2 billion in the first six months of 2024, marking increases of 15.0% and 12.6%, respectively, compared to 2023. This growth was primarily due to higher demand for aerospace products and, to a lesser extent, power generation products.
Long-term industry forecasts predict continued growth and strong demand for air travel and aerospace products.
PCC’s pre-tax earnings saw a significant rise of 27.5% in the second quarter and 22.4% in the first six months of 2024 compared to the previous year, driven by increased sales and improved manufacturing and operating efficiencies. Future revenue and earnings growth will depend on PCC’s ability to scale production to meet the anticipated rise in aerospace product demand.
PCC is a global, diversified manufacturer of complex metal components and products, serving the aerospace, power, and general industrial markets. Its Airframe Products division is a leading manufacturer of engineered fasteners, fastening systems, metal components, and assemblies for various sectors, including aerospace, transportation, and power generation.
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.