A worldwide, diversified manufacturer of complex metal components and products
Equipment Failure at Precision Castparts Corp.’s Wyman-Gordon Forging Facility
PORTLAND – November 20, 2008 – This morning, the 29,000-ton forging press at Precision Castparts Corp.’s (NYSE:PCP) Wyman-Gordon (Wyman) facility in Houston, Texas, failed.
This forge is used primarily to manufacture aircraft engine components. The company has a risk mitigation strategy in place in the event of such a failure.
Wyman estimates that roughly 70 percent of the product handled on the 29,000-ton press can be moved with little interruption to another press in the Houston facility. The balance can be manufactured in other Wyman facilities within a reasonable period of time. This effort will be coordinated with Wyman’s customers. At this point, Wyman has begun an analysis of the extent of required repairs and expects to gain a better understanding of the situation within a week.
“We have notified our customers about this unfortunate failure and will work closely with them to mitigate production interruptions,” said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. “The primary output of the 29,000-ton press is aircraft engine components; the other Houston product lines are not affected.”
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines. The Company is also a leading producer of highly engineered, critical fasteners for aerospace, automotive, and other markets and supplies metal alloys and other materials to the casting and forging industry.
Information included within this press release describing projected growth and future results and events constitutes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuations in the aerospace, power generation, automotive, and other general industrial cycles; the relative success of the Company’s entry into new markets; competitive pricing; the financial viability of the Company’s significant customers; the impact on the Company of customer labor disputes; the availability and cost of materials, energy, supplies, insurance, and pension benefits; equipment failures; relations with the Company’s employees; the Company’s ability to manage its operating costs and to integrate acquired businesses in an effective manner; governmental regulations and environmental matters; risks associated with international operations and world economies; the relative stability of certain foreign currencies; and implementation of new technologies and process improvement. Any forward-looking statements should be considered in light of these factors. The Company undertakes no obligation to publicly release any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document.
Dwight E. Weber