Former Thiokol Is 'Much Diversified' Now

Ask Jim Wilson about his new golf putter, and he'll explain that although the ball reacts better than to one made of titanium or steel, the whole point is that his prototype is just one application for Vitreloy-a revolutionary metallic glass alloy that can be used in turbine blades and airframe components.

After creating a sensation in the golf world this year with its advanced properties, Vitreloy is making its way to Farnborough for the first time in an engine turbine component, exhibited by Howmet Corp. It is not, it seems, much of a swing from playing a round to going around.

To Wilson, chairman and CEO of Cordant Technologies (renamed in May from Thiokol Corp., famous for solid rocket propulsion), the synergy between the putter and the turbine blade sums up the technological scope of his company. "The name change to Cordant from Thiokol is a reflection of the fact the company has evolved from a single product into a much diversified entity," he told Show News.

Seven years ago Thiokol, which was totally dependent on the U.S. federal budget, decided it had better add a couple of strings to its bow if it was going to survive cutbacks in government spending. It acquired the Huck International fasteners and Howmet Corp. metal forging companies, just before the latest boom in the aerospace market.

"With three strong names-Huck, Howmet and Thiokol-it was becoming more difficult to use the Thiokol name in the other markets. And we didn't want to dilute the Thiokol name, either," Wilson explained. The solution: Cordant. "It comes from the word 'concordant,' meaning harmony," Wilson noted, plus "Technologies." All three divisions will continue to use their own names in their respective markets, under the Cordant umbrella.

Cordant Technologies' strategy remains unchanged: to build a company with leadership in a number of different markets in order to smooth out cycles in different industries. Cordant notched revenues of almost $1.8 billion in its last year, with 35% attributable to commercial aircraft, 16% to defense, 21% to space, and 28% industrial. "That's a good mix, with good growth prospects," Wilson said.

Both Huck and Howmet provide some insulation in the case of a downturn in aerospace; half of Huck's market is diversified in trucks, railroads and construction, while Howmet is the world's leading supplier of investment-cast aluminum components for many commercial applications. Casting is a more economical process than forging for producing metal parts in complex shapes with great precision.

Cordant's highlights of the year included increasing ownership in Howmet from 49% to 62%; the acquisition of the Jacobson Manufacturing industrial fasteners company; and selection of Thiokol Propulsion as the propulsion team leader for the USAF's Minuteman program, which is expected to be worth more than $1 billion in revenues over the next 12 years.

Wilson's objectives for Cordant are to continue to grow in its three areas of expertise: solid rocket propulsion, aerospace fasteners at Huck, and engine and airframe castings and forgings at Howmet. The company intends to leverage its technology to develop new products, although Wilson stops short of promising a new line of golf clubs!

"We will also grow through acquisition, on an opportunistic basis," he said. "We are looking for a fourth major core business," likely with roots in aerospace technology. No targets have yet been selected, but "everything we make goes into somebody else's product," Wilson explained. "Our customers are all large, sophisticated OEMs where our contribution is mission-critical, technically critical components. We are not going to get too far off that model."

Cordant will meanwhile continue to look for other add-on acquisitions to bolster its existing core businesses, Wilson said.