Howmet Aerospace reported Fastening Systems revenue fell 6% to $254 million in the third quarter of 2021due to declines in the commercial aerospace market, primarily driven by the impact of COVID-19 and Boeing 787 production declines, partly offset by growth in the commercial transportation and industrial markets.

Segment operating profit increased 42% to $47 million, driven by variable and fixed cost reductions and favorable sales volumes in the commercial transportation and industrial markets, partially offset by volume declines in the commercial aerospace market. Segment operating profit margin increased approximately 630 basis points year over year to 18.5%.

Consolidated company revenue in Q3 gained 13% to $1.28 billion, primarily driven by growth in the commercial transportation, commercial aerospace and industrial gas turbine markets as well as favorable product pricing, partially offset by declines in the defense aerospace market. Q3 revenue increased 7% sequentially, driven by growth in the commercial aerospace market.

Income from continuing operations declined 23% to $27 million, with operating income nearly doubling to $205 million, defense aerospace market. Operating income margin rose approximately 870 basis points to 17.5%.

“The leading indicators for air travel remain encouraging, particularly for domestic travel. We expect revenue growth to continue in the fourth quarter 2021, and carry into 2022 and beyond,” stated CEO John Plant. “We expect modest sequential growth in Engineered Structures in the fourth quarter 2021, with Fastening Systems showing growth in the first half of 2022.” Web: Howmet.com