By Lee Samaha - May 22, 2013 | Tickers: AA, BEAV, PCP | 0 Comments

Lee is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Another week and another set of earnings in the industrial space that confirms the curious bifurcation in the sector. Companies selling to the aerospace and automotive sectors had a good quarter, while others found things a lot tougher. Such thoughts came to mind when looking at Precision Castparts' (NYSE: PCP) latest results. In this article I want to delve into the reasons why, and suggest some other stocks in the aerospace sector.

Precision Castparts lifts off

The bifurcation that I spoke of above was further demonstrated in these results. Fortunately for Precision Castparts investors, the company has increased its exposure to aerospace. It now makes up 67% of revenues, vs. 64% last year. The Timet acquisition has helped while also allowing it to generate operational efficiencies and synergies.

A quick breakdown of revenues demonstrates the positive effects of Timet on the forged products segment:

And a breakdown of operating income in the quarter shows how it makes its money:

Moreover, there is still plenty of growth to come as it ramps up production (notably by getting its 29,000 ton press back to full capacity by the end of the year) for the Boeing 787 this year. It will do similar with the 737 next year. Fortunately, large commercial aerospace makes up 75% of its market, with military only at 17%. Elsewhere, its other segments saw less than stellar performance, with power falling to 18% of sales from 21% last year, and general industrial remaining flat at 15%.

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The Latest Aerospace Play Gives Earnings