# Precision Castparts Corp.

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{{Short description|American manufacturing company}}
{{Use American English|date=April 2016}}
{{Use mdy dates|date=April 2016}}
{{coord|45.4891271|-122.6728299|type:landmark_region:US-OR|display=title}}
{{Infobox company
| name = Precision Castparts Corp.
| logo = Precision Castparts logo.svg
| type = [Subsidiary](/source/Subsidiary)
| founded = {{Start date and age|1953|4|1}} in [Portland, Oregon](/source/Portland%2C_Oregon), U.S.
| location = 
| hq_location_city = [Portland, Oregon](/source/Portland%2C_Oregon)
| hq_location_country = U.S.
| key_people = Mark Donegan<br />([Chairman](/source/Chairman) & [CEO](/source/Chief_executive_officer))
| industry = [Aerospace](/source/Aerospace_engineering) and [Defense](/source/Military)
| products = Investment castings, forged products, fasteners
| revenue = {{increase}} [US$](/source/United_States_dollar)9.6 billion <small>(FY 2014)</small><ref name="Precision Castparts -2012-11-K">{{cite web |url=http://pdf.secdatabase.com/1401/0000079958-12-000015.pdf |title=Precision Castparts 2012 Annual Report, Form 10-K, Filing Date May 31, 2012 |publisher=secdatabase.com |access-date=June 8, 2012}}</ref>
| operating_income = {{increase}} US$2.6 billion <small>(FY 2014)</small><ref name="Precision Castparts -2012-11-K"/>
| net_income = {{increase}} US$1.7 billion <small>(FY 2014)</small><ref name="Precision Castparts -2012-11-K"/>
| assets = {{increase}} US$18.5 billion <small>(FY 2014)</small><ref name="Precision Castparts -2012-11-K"/>
| equity = {{increase}} US$11.4 billion <small>(FY 2014)</small><ref name="Precision Castparts -2012-11-K"/>
| owner = [Berkshire Hathaway](/source/Berkshire_Hathaway) (since 2016)<ref name="sale final"/>
| num_employees = 30,100 (March 2015)<ref name="sale final"/>
| parent = 
| divisions = PCC Airfoils, PCC Structurals, PCC Energy Group, PCC Fasteners, PCC Aerostructures
| subsidiaries = [Wyman-Gordon](/source/Wyman-Gordon), [Special Metals Corporation](/source/Special_Metals_Corporation), [Titanium Metals Corporation](/source/Titanium_Metals_Corporation), Texas Honing Inc.
| website = {{URL|http://www.precast.com}}
}}

'''Precision Castparts Corp.''' is an American industrial goods and [metal fabrication](/source/fabrication_(metal)) company that manufactures investment castings, forged components, and airfoil castings for use in the [aerospace](/source/aerospace), industrial gas turbine, and defense industries. In 2009, it ranked 362nd on the [Fortune 500](/source/Fortune_500) list, and 11th in the aerospace and defense industry.<ref name=cnn>[https://money.cnn.com/magazines/fortune/fortune500/2009/snapshots/955.html Precision Castparts.]{{dead link|date=May 2026|bot=medic}}{{cbignore|bot=medic}} Fortune 500: 2009. CNNMoney.com. Retrieved on April 20, 2009.</ref> In 2015, it ranked 322nd overall and 9th in the aerospace and defense industry.<ref>{{cite web |url=http://fortune.com/fortune500/precision-castparts-corp-322/ |title=Fortune 500 |author=Brett Krasnove |date=June 3, 2015 |work=Fortune |access-date=April 16, 2016}}</ref> In 2014, it ranked 133rd on the S&P 500 based on market capitalization.<ref>{{cite web |url=https://www.forbes.com/sites/dividendchannel/2014/09/08/precision-castparts-takes-over-133-spot-from-kraft-foods-group/ |title=Precision Castparts Takes Over #133 Spot From Kraft Foods Group |author=Dividend Channel |date=September 8, 2014 |work=Forbes}}</ref> In January 2016, the company became a wholly owned [subsidiary](/source/subsidiary) of [Berkshire Hathaway](/source/Berkshire_Hathaway).<ref name="sale final">{{cite news |last=Rogoway |first=Mike |title=Precision Castparts' $37B sale finalized<!--(print-edition headline)--> |url=http://www.oregonlive.com/business/index.ssf/2016/01/precision_castparts_sale_is_fi.html |access-date=2016-02-02 |newspaper=The Oregonian |date=January 30, 2016 |page=C8 |orig-year=first published online January 29}}</ref><ref name="ssrn1">{{cite news |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2974596 |ssrn=2974596 |title=Warren E. Buffett, 2015 |last1=F. |first1=Bruner |last2=Jake |first2=Dubois}}</ref> Before that event, it used to be one of the three Fortune 500 companies headquartered in [Oregon](/source/Oregon).

==History==
===20th century===
Precision Castparts (PCC) was founded by [Joseph Buford Cox](/source/Joseph_Buford_Cox) on April 1, 1953.<ref name="pcc">[http://www.precast.com/PCC/History_txt.html History.] {{webarchive|url=https://archive.today/20020311141228/http://www.precast.com/PCC/History_txt.html |date=March 11, 2002 }} Precision Castparts. Retrieved on February 28, 2008.</ref> Cox was owner of Oregon Saw Chain and in 1949 had started a casting operation to make saw teeth with assistant general manager Ed Cooley also working on the project. In 1953 Cox separated the two companies and PCC was formed, moving into a new larger facility in 1955, and incorporating the following year with Ed Cooley as one of the owners.<ref name="pcc"/>

===Early 2000s===
In 2002, Mark Donegan became President and CEO. SPS Technologies (formerly Standard Pressed Steel) was acquired in 2003.<ref>{{cite web |url=https://www.precast.com/about |title=About PCC |website=PCC |access-date=2023-09-24}}</ref>  The company received tax breaks from local governments in the [Portland metro area](/source/Portland_metro_area) in 2006 in exchange for a plant expansion.<ref>[Zuckerman, Peter](/source/Peter_Zuckerman). Precision's growth will bring 400 new jobs. ''[The Oregonian](/source/The_Oregonian)'', September 25, 2006.</ref> In 2007, the company purchased Cherry Aerospace to expand their fastener business.<ref>Hunsberger, Brent. Precision Castparts buys maker of fasteners. ''[The Oregonian](/source/The_Oregonian)'', January 9, 2007.</ref> After ranking as the 568th largest U.S. company by ''Fortune'' in 2007,<ref>{{cite web |url=https://money.cnn.com/magazines/fortune/fortune500/2007/full_list/501_600.html |title=Fortune 500 2007 |date=April 30, 2007 |publisher=CNNMoney.com |access-date=2009-07-20}}{{dead link|date=May 2026|bot=medic}}{{cbignore|bot=medic}}</ref> the company became a [Fortune 500](/source/Fortune_500) the next year when it ranked 444, and rose to 362 in 2009.<ref name=cnn/> It ranked 322 prior to its sale to Berkshire in 2016.

PCC announced the purchase of Carlton Forge Works in October 2009 for $850 million and Primus International Inc. in July 2011 in a $900 million deal.<ref name="Primus deal"/> Primus made parts for airplanes, selling their products to both [Airbus](/source/Airbus) and [Boeing](/source/Boeing).<ref name="Primus deal">{{cite news |title=Portland-based Precision Castparts announces $900 million deal to buy Primus International |date=July 10, 2011 |newspaper=[The Oregonian](/source/The_Oregonian) |last=Read |first=Richard}}</ref> In May 2012 PCC acquired Centra Industries Inc. a builder of aircraft parts for [Boeing](/source/Boeing), [Lockheed Martin](/source/Lockheed_Martin), [Northrop Grumman](/source/Northrop_Grumman), [Spirit AeroSystems](/source/Spirit_AeroSystems), [Mitsubishi Heavy Industries](/source/Mitsubishi_Heavy_Industries) and [Bombardier](/source/Bombardier_Inc.). They have two plants based in [Cambridge, Ontario](/source/Cambridge%2C_Ontario), [Canada](/source/Canada).<ref>{{cite web |url=https://www.bloomberg.com/article/2012-05-07/a3VC8_OrwoRs.html |title=Centra Industries Announces Sale to Precision Castparts Corp. |publisher=Bloomberg |date=2012-05-07 |access-date=2013-11-21}}</ref> Texas Honing was purchased by PCC in October 2012,<ref>{{cite news |last=Siemers |first=Erik |title=Precision Castparts acquires Texas Honing |url=http://www.bizjournals.com/portland/morning_call/2012/10/precision-castparts-acquires-texas.html |access-date=October 8, 2012 |newspaper=Portland Business Journal |date=October 8, 2012}}</ref> followed by the $2.9 billion acquisition of [Titanium Metals](/source/Titanium_Metals) in November 2012.<ref>{{cite news |last=Read |first=Richard |title=Precision Castparts to acquire Titanium Metals in $2.9 billion deal |newspaper=[The Oregonian](/source/The_Oregonian) |date=November 9, 2012}}</ref>

In May 2011, toxic chemicals such as [nitrogen dioxide](/source/nitrogen_dioxide) and [hydrochloric acid](/source/hydrochloric_acid) were unexpectedly released at the company's titanium plant on Johnson Creek Blvd, Portland, Oregon.<ref>{{cite news |url=http://portlandtribune.com/sl/301085-178141-long-history-of-johnson-creek-pollution-winds-back-to-precision-castparts |archive-url=https://web.archive.org/web/20160409005412/http://portlandtribune.com/sl/301085-178141-long-history-of-johnson-creek-pollution-winds-back-to-precision-castparts |url-status=dead |archive-date=April 9, 2016 |title=Oregon Local News - Long history of Johnson Creek pollution winds back to Precision Castparts |newspaper=Portland Tribune |author=Paul Koberstein |location=Portland, Oregon |date=April 7, 2016 |access-date=April 16, 2016}}</ref> Although four people were hospitalized, nobody was permanently injured from the fumes. Firefighters had difficulty shutting down the plant.<ref>{{cite news |title=After a night of tension, confusion and a toxic cloud, Precision Castparts in Oregon says it will make changes to prevent a repeat |newspaper=The Oregonian |date=August 6, 2011 |author=Learn, Scott |author2=Feulner, Natalie |location=Portland, Oregon}}</ref>

The Toxic 100 Air polluters index from the [University of Massachusetts](/source/University_of_Massachusetts) listed Precision Castparts as the number one air polluter in the U.S. in the August 2013 edition,<ref>{{cite news |last=Read |first=Richard |title=Portland's Precision Castparts ranked nation's top industrial air polluter in University of Massachusetts study |url=http://www.oregonlive.com/business/index.ssf/2013/08/portlands_precision_castparts_2.html |access-date=9 November 2013 |newspaper=The Oregonian |date=August 26, 2013}}</ref> although the company called it a flawed study.<ref>{{cite news |author=News Staff |title=Precision Castparts: Pollution study 'deeply flawed' |url=http://www.koin.com/news/multnomah-county/precision-castparts-pollution-study-deeply-flawed |access-date=9 November 2013 |publisher=KOIN 6 |date=August 29, 2013 |archive-url=https://web.archive.org/web/20131109221837/http://www.koin.com/news/multnomah-county/precision-castparts-pollution-study-deeply-flawed |archive-date=November 9, 2013 |url-status=dead |df=mdy-all}}</ref>

===Berkshire Hathaway era===
On August 10, 2015, the boards of directors of [Berkshire Hathaway](/source/Berkshire_Hathaway) Inc. and Precision Castparts Corp. unanimously approved a definitive agreement for Berkshire Hathaway to acquire, for $235 per share in cash, all outstanding PCC shares, for a total sum of $37 billion including assumed debt.<ref>{{Cite web |title=Welcome to Precision Castparts Corp. |url=http://www.precast.com/investors/press_release/?id=666 |website=www.precast.com |access-date=2015-08-10 |archive-date=August 12, 2015 |archive-url=https://web.archive.org/web/20150812233517/http://www.precast.com/investors/press_release/?id=666 |url-status=dead}}</ref>  The sale was finalized on January 29, 2016, on which date Berkshire Hathaway took ownership of Precision Castparts.<ref name="sale final"/>

In 2021, Berkshire Hathaway took an almost $11 billion writedown on the investment.<ref>{{cite web |last1=Stempel |first1=Jonathan |title=Warren Buffett's $10 billion mistake: Precision Castparts |url=https://www.reuters.com/article/us-berkshire-buffett-precisioncastparts-idUSKCN2AR0MZ |website=Reuters |archive-url=https://web.archive.org/web/20210310225739/https://www.reuters.com/article/us-berkshire-buffett-precisioncastparts-idUSKCN2AR0MZ |archive-date=March 10, 2021 |language=en |date=February 27, 2021 |url-status=live}}</ref>

==2025 SPS Technologies fire==
In February of 2025, a fire broke out at the Jenkintown SPS Technologies facility that lasted six days.<ref name=sps1>{{cite web |title=Abington Township Update on SPS Technologies Incident |url=https://www.abingtonpa.gov/home/showpublisheddocument/18415 |publisher=Township of Abington |access-date=23 February 2025 |archive-url=https://archive.today/20250223140315/https://www.abingtonpa.gov/home/showpublisheddocument/18415 |archive-date=23 February 2025 |format=Press Release |date=22 February 2025}}</ref>
===Context===
SPS Technologies (formerly Standard Pressed Steel) moved its headquarters to [Jenkintown, Pennsylvania](/source/Jenkintown%2C_Pennsylvania) in 1920.<ref>{{cite book |last1=Hallowell |first1=Thomas |title=SPS Its First Sixty Years: A Brief History of Standard Pressed Steel Company |date=1963 |publisher=Newcomen Society in North America}}</ref>
In the months leading up to the fire, the SPS Technologies building did not have a working sprinkler system. The sprinkler system was inoperative due to a water main break. Representatives for SPS claimed that they were in compliance with state and local laws, by establishing cautionary measures such as a firewatch.<ref>{{cite web |title=FAQ |url=https://www.spsupdates.com/faq/ |publisher=SPS Technologies |access-date=23 February 2025 |archive-url=https://archive.today/20250223134943/https://www.spsupdates.com/faq/ |archive-date=23 February 2025}}</ref> The facility had been fined in the past for failures to comply with environmental regulations in the 1980s and 2023. The issues found in 2023 were in regards to the storage of chemicals without a permit.<ref>{{cite news |last1=Bender |first1=William |last2=Bunch |first2=Jesse |last3=Briggs |first3=Ryan |last4=Forman |first4=Beatrice |title=Flare-up of Montco Fire Spurs Stay-Home Orders |agency=Philadelphia Inquirer |publisher=The Philadelphia Inquirer |date=19 February 2025 |pages=A10}}</ref> The fire marshal of Abington Township confirmed that there was a fire brigade in the building at the time.<ref>{{cite web |last1=Martin |first1=Saleen |title=Video shows massive fire at Pennsylvania manufacturing facility after explosion |url=https://www.usatoday.com/story/news/nation/2025/02/18/pennsylvania-warehouse-fire-sps-technologies-video/79065568007/ |website=USA Today |publisher=Gannett Satellite Information Network |access-date=23 February 2025 |language=EN |date=18 February 2025}}</ref>

===Incident===
At approximately 9:30 PM, on Monday February 17th, 2025<ref>{{cite web |last1=Hecker |first1=Thomas |title=DECLARATION OF DISASTER EMERGENCY |url=https://www.abingtonpa.gov/home/showpublisheddocument/18389/638755072768130000 |publisher=Abington Township |access-date=23 February 2025 |archive-url=https://archive.today/20250223142751/https://www.abingtonpa.gov/home/showpublisheddocument/18389/638755072768130000 |archive-date=23 February 2025}}</ref> reports of fire and explosions were indicated to local authorities by residents.<ref>{{cite news |last1=Bender |first1=William |last2=Bunch |first2=Jesse |last3=Briggs |first3=Ryan |last4=Forman |first4=Beatrice |title=Flare-up of Montco Fire Spurs Stay-Home Orders |agency=Philadelphia Inquirer |publisher=The Philadelphia Inquirer |date=19 February 2025 |pages=A10}}</ref><ref>{{cite web |last1=Ignudo |first1=Tom |last2=Corrado |first2=Kerri |last3=Roberts |first3=Alicia |last4=Will |first4=Kenworthy |last5=Simon |first5=Alexandra |last6=Sanders |first6=Josh |last7=Crawford |first7=Liz |last8=Holden |first8=Joe |last9=Newbill |first9=Taleisha |title=Some residents asked to voluntarily evacuate after SPS Technologies fire in Abington Township, Pennsylvania |url=https://www.cbsnews.com/philadelphia/news/fire-in-jenkintown-sps-technologies/ |website=CBS News |date=February 19, 2025 |publisher=CBS Broadcasting Inc |access-date=23 February 2025}}</ref><ref>{{cite web |last1=Vadala |first1=Nick |title=What we know about the fire at SPS Technologies in Abington |url=https://www.inquirer.com/news/pennsylvania/sps-technologies-fire-what-we-know-20250218.html |website=The Philadelphia Inquirer |publisher=The Philadelphia Inquirer, LLC |access-date=23 February 2025 |archive-url=https://archive.today/20250218234728/https://www.inquirer.com/news/pennsylvania/sps-technologies-fire-what-we-know-20250218.html |archive-date=18 February 2025 |url-status=live}}</ref> The fire quickly spread throughout the facility, leading to the response of over 50 vehicles, and in excess of 60 fire departments. On Tuesday, the 18th, Ashley McIllvaine, assistant manager of Abington township,<ref>{{cite web |last1=Ciliberti |first1=Dino |title=Abington Township Earns Gold For Sustainability |url=https://patch.com/pennsylvania/abington/abington-township-earns-gold-sustainability |website=Patch: Politics and Government |access-date=23 February 2025 |archive-url=https://archive.today/20250223144104/https://patch.com/pennsylvania/abington/abington-township-earns-gold-sustainability |archive-date=23 February 2025 |date=8 August 2024}}</ref> acknowledged the facility was still on fire.<ref>{{cite news |last1=Bender |first1=William |last2=Bunch |first2=Jesse |last3=Briggs |first3=Ryan |last4=Forman |first4=Beatrice |title=Flare-up of Montco Fire Spurs Stay-Home Orders |agency=Philadelphia Inquirer |publisher=The Philadelphia Inquirer |date=19 February 2025 |pages=C, A10}}</ref>

As of February 22, 2025 at 3:53 PM local time, the fire was officially declared extinguished. According to final reports on the incident, over one-hundred agencies were involved with fighting the blaze. No employees, citizens, or first responders died during the incident.<ref>{{cite web |title=Abington Township Update on SPS Technologies Incident |url=https://www.abingtonpa.gov/home/showpublisheddocument/18415 |publisher=Township of Abington |access-date=23 February 2025 |archive-url=https://archive.today/20250223140315/https://www.abingtonpa.gov/home/showpublisheddocument/18415 |archive-date=23 February 2025 |format=Press Release |date=22 February 2025}}</ref>

===Impact===
At least 250 employees have been laid off as of March 15th 2025.<ref>{{cite web |last1=Makhija |first1=Neil |title=Commissioner Neil Makhija's Post |url=https://www.facebook.com/commissionerneilmakhija/posts/pfbid0KrW8TTTheEgbBMUqNuDN6S5AQuRC44wjG8rPmRoGgKmTrqUBzkHCDZHyhQY2hV4Pl |website=Facebook |publisher=Meta Platforms Inc. |access-date=17 March 2025}}</ref>
{{Expand section|date=February 2025}}

===Cause===
{{Expand section|with= More details about the cause of the fire when they become available|date=February 2025}}
As of February 23rd, 2025 the cause of the fire is not known, and investigations are in progress. {{citation needed|date=February 2025}}

==Financials==

{| class="wikitable"
|-
! Year
! Revenue
! Net Profit
|-
| 2004:
| $1,913
| $117
|-
| 2005
| $2,919
| ($1.7)
|-
| 2006
| $3,546
| $350
|-
| 2007
| $5,361
| $633
|-
| 2008
| $6,852
| $987
|-
| 2009
| $6,801
| $1,044
|-
| 2010
| $5,486
| $922
|-
| 2011
| $6,209
| $1,015
|-
| 2012
| $7,202
| $1,226
|-
| 2013
| $8,361
| $1,430
|-
| 2014
| $9,616
| $1,784
|}<sup>*In millions of US dollars.<ref name="pccfin">[http://www.precast.com/docs/PCCannual06.pdf Annual Report: 2006.] {{webarchive|url=https://web.archive.org/web/20070927101413/http://www.precast.com/docs/PCCannual06.pdf |date=September 27, 2007 }} Precision Castparts. Retrieved on February 28, 2008.</ref><ref>[https://www.sec.gov/Archives/edgar/data/79958/000119312507127000/d10k.htm 2007 SEC 10-K Form, page 26.] Precision Castparts. Retrieved on May 28, 2008</ref></sup>

Listed on the [New York Stock Exchange](/source/New_York_Stock_Exchange) as PCP, the company was part of the [S&P 400](/source/S%26P_400). In 2007, Precision was moved to the [S&P 500](/source/S%26P_500) stock index.<ref name=sp500>[https://money.cnn.com/2007/05/30/markets/bc.sp500.changes.reut/index.htm?postversion=2007053018 Precision Castparts to join S&P 500.]{{dead link|date=May 2026|bot=medic}}{{cbignore|bot=medic}} CNNMoney.com. Retrieved on May 31, 2007.</ref><ref name=yahoo>[https://finance.yahoo.com/q/pr?s=pcp Precision Castparts] Yahoo! Finance. Retrieved on February 28, 2008.</ref> As seen in the table above, PCP's revenue increased by 52 percent in 2007, to $5.4 billion from $3.5 billion in 2006. Total debt increased by 29 percent, from $677 million in 2006 to $873 million in 2007. The increases in revenue and debt were due in part to a pair of acquisitions in February 2007: GSC Foundries, Inc. (GSC), formerly a competitor to PCP in producing aluminum and steel structural investment castings, and Cherry Aerospace LLC (Cherry), a manufacturer of aerospace blind rivets and blind bolts.<ref>[PCP 2007 10-K, p. 24 via Wikinvest](/source/Wikinvest%3APrecision_Castparts)</ref>

==Products==
The company manufactures a variety of parts for the [aerospace](/source/aerospace) industry including many [jet engine](/source/jet_engine) components.<ref name=yahoo/> PCC also makes medical [prostheses](/source/prostheses) and parts for other industrial applications such as in the oil industry, in the gas industry, and for use in power generating turbines for producing electricity.<ref name=yahoo/> They are considered a leader in the manufacturing of both jet engine airfoils and gas turbines used for generating electricity.<ref>Strom, Shelly. [http://www.bizjournals.com/portland/stories/2001/07/16/daily34.html Precision Castparts: Energy markets drive sales.] ''[Portland Business Journal](/source/Portland_Business_Journal)'', July 19, 2001.</ref>  The company generates $1.5 million in revenue for each Boeing 787 Dreamliner built.<ref>Read, Richard. "Boeing's newest bird takes a giant leap forward". ''[The Oregonian](/source/The_Oregonian)'', March 18, 2007.</ref> Other products made from the various metals are fasteners, products for the paper industry, parts used in the defense industry, and parts for the automotive industry.<ref name=yahoo/> PCC's main markets are the United States, [Europe](/source/Europe), and [Asia](/source/Asia).<ref name=yahoo/>

==See also==
* [List of companies based in Oregon](/source/List_of_companies_based_in_Oregon)

==References==
{{Reflist|colwidth=30em}}

{{Berkshire Hathaway}}
{{ORCompanies}}
{{Authority control}}

Category:1953 establishments in Oregon
Category:2016 mergers and acquisitions
Category:Aerospace companies of the United States
Category:American corporate subsidiaries
Category:Berkshire Hathaway
Category:Companies based in Portland, Oregon
Category:Companies formerly listed on the New York Stock Exchange
Category:Defense companies of the United States
Category:Manufacturing companies established in 1953
Category:Manufacturing companies based in Oregon

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Adapted from the Wikipedia article [Precision Castparts Corp.](https://en.wikipedia.org/wiki/Precision_Castparts_Corp.) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Precision_Castparts_Corp.?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.