An Oregon company that owns two aviation suppliers in Wichita said Friday it was lowering its revenue and earnings per share estimates ahead of the release of its third-quarter results.
Precision Castparts Corp., based in Portland, said a number of factors, including deteriorating demand in its oil and gas business, prompted the downgrade for its fiscal 2015 third quarter, financial results of which it expects to release on Jan. 22.
The company, which manufactures complex metal components and products for a number of different industries, owns Wichita suppliers Exacta Aerospace and Synchronous Aerospace Group.
Precision said in a news release that it now expects revenue to be between $2.42 billion and $2.47 billion, and diluted earnings per share from continuing operations of between $3.05 and $3.10 per share. The consensus estimate among Wall Street analysts was $3.40 a share, prior to the company’s Friday announcement.
Despite the lowered revenue and earnings estimates, Precision chairman and CEO Mark Donegon said in the release that he’s optimistic about the company’s fortunes going forward.
“… The momentum in our aerospace business continues, and we have already begun to deliver the inventory deferred in the third quarter and expect to realize those sales in the fourth quarter,” Donegan said. “Looking forward, PCC has strong technical expertise in the oil & gas markets and is pursuing new awards; however, those markets are clearly full of uncertainties at the moment. Regardless of these challenges, we are positioned for growth across our markets and expect to leverage that growth effectively over the long term.”