Howmet Aerospace reported Fastening Systems revenue decreased 18% to $326 million in the second quarter of 2020 due to declines in the commercial aerospace and commercial transportation markets, primarily driven by COVID-19 and 737 MAX production declines.  Segment operating profit fell 29% to $70 million, driven by volume declines, impacts from higher employee absenteeism due to COVID-19, and delayed cost actions in Europe.  Segment operating profit margin decreased 330 basis points to 21.5%.

Fastening Systems sales during the first half of 2020 dropped 10.4% to $711 million, with operating profit down 14.8% to $166 million.  Segment capital expenditures declined 11.7% to $15 million.

Consolidated Q2 revenue slipped 31% to $1.25 billion, while operating income totaled $74 million versus a loss of $176 in the second quarter of 2019.

“The full impact of the COVID-19 pandemic was felt across our businesses in the second quarter,” stated co-CEO John Plant.

Howmet Aerospace officially split from Arconic on April 1 to become an independent company.

The new company, composed of engine products, fastening systems, engineered structures and forged wheels businesses, is led by co-CEOs Plant, who will also serve as board chairman, and Tolga Oal, who previously served as president of Arconic Engineered Structures.

Headquartered in Pittsburgh, Howmet Aerospace’s primary businesses focus on jet engine components, aerospace fastening systems and titanium structural parts for aerospace and defense applications, as well as forged wheels for commercial transportation.  Web: Howmet.com