About PCC STRUCTURALS, INC.

Precision Castparts Corp. (PCC) is a maker of investment castings used in jet aircraft, satellite launches, aerostructures, armaments, and medical applications (prostheses). Its Investment Cast products segment makes jet engine parts, fluid management valves, and deep-hole boring tools. Forged Products and Airframe Products round out PCC's three segments and cover the power generation and paper and pulp industries, as well as general industry. The aerospace sector accounts for the majority of PCC's sales. In January 2016, the company was acquired by Berkshire Hathaway in a mega-deal valued at $37 billion.

Change in Company Type

In 2016, Berkshire Hathaway acquired Precision Castparts Corp (PCC) for $37.2 billion. Berkshire Hathaway and its subsidiaries own a vast and diverse number of business activities including insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing, and services. PCC is now a wholly-owned subsidiary of Berkshire.

Operations

PCC manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil and gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting, forging, and other industries.

PCC's Forged Products segment works with such metals as titanium and steel alloys to manufacture components for commercial and military aircraft. The lineup ranges from landing gear to wing structures and airframes, as well as piping for the energy market.

The Airframe Products segment primarily produces highly engineered fasteners, fastener systems, fluid fittings, aerostructures, and precision components for critical applications in the aerospace, automotive and industrial machinery markets. The majority of Airframe Products sales come from the same aerospace customer base served by the Investment Cast Products and Forged Products segments. The unit also manufactures parts used in the pulp and paper and power generation markets.

The Investment Cast Products division works with specialty materials and alloys, nickel- and cobalt-base alloys and stainless steel, to create large structural castings for such applications as aircraft engines, gas turbines, airfoils, and airframes. Other products from this segment include medical prostheses, artificial hips and knees, and components for pumps and compressors, as well as large titanium components for armament systems such as the BAE lightweight howitzer.

Geographic Reach

PCC operates 155 manufacturing plants across North America, South Americas, Europe, Asia and Australia.

Sales and Marketing

PCC serves the aerospace, power, and general industrial markets. The company offers its products for coal-fired, industrial gas turbine (IGT) and nuclear power plants; oil and gas environment; general industrial, armament, medical and other applications; aerospace, chemical processing, oil and gas, pollution control; automotive and general industrial markets, and investment casting and forging industries.

The company sells its products through direct sales personnel, along with field sales representatives as well as through a worldwide network of distributors. Aerostructures' products and services are sold through a direct sales staff.

PCC’s customers have included such notable names as General Electric, United Technologies, Rolls Royce, Airbus, Spirit AeroSystems, Kennametal, Siemens, and Boeing. Direct sales to General Electric accounted for about 15% of PCC's revenues in fiscal 2016.

Strategy

The company is focused on acquisitions to develop its businesses, expand internationally, provide low-cost manufacturing, and fund investment in technologies to add products and services.

It also sells non-core assets to pay down debt. In the fourth quarter of fiscal 2015, the company decided to sell its 50% ownership of Yangzhou Chengde Steel Tube Co. Ltd., a large-diameter pipe manufacturing joint venture in China.That year PCC also divested two small businesses in the Forged Products segment; In fiscal 2014 it also sold two small non-core businesses.

Mergers and Acquisitions

PCC is using acquisitions as a means to bolster sales. In 2015, PCC acquired Noranco from MidOcean Partners and PSP Investments for $560 million. Noranco is a premier supplier of complex machined and fabricated components for aero-engine, landing gear, and airframe applications. The deal strengthened its existing market position in airframe products and on current and next generation aircraft.

In 2016, the company obtained Composites Horizons, an independent supplier of high temperature carbon and ceramic composite components, including ceramic matrix composites (CMC), for use in next-generation aerospace engines. The deal gave PCC the ability to offer its engine customers metallic and CMC material capability to meet a broader range of customer requirements.

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PCC STRUCTURALS, INC.

4600 Se Harney Dr
Portland, OR 97206-0825
Phone: 1 (503) 777-3881
Fax: 1 (503) 788-5436

Stats

  • Employer Type: Public
  • Cfo: William Larsson
  • Vice President of Marketing: Martin Quigley
  • Pres: Kevin M Stein

Major Office Locations

  • Portland, OR

Other Locations

  • San Leandro, CA
  • Carson City, NV
  • Clackamas, OR
  • Milwaukie, OR
  • Redmond, OR