Howmet Aerospace estimated Engineered Products and Forgings segment revenue, primarily from fasteners, declined 7% to $1.6 billion in the opening quarter of 2020.  Segment organic revenue fell 4% “due to disruptions in the commercial transportation and aerospace markets driven by COVID-19 and 737 MAX production declines.”

EP&F operating profit rose 9% to $340 million, driven by net cost reductions, lower raw material costs and price increases, partially offset by volume declines. Segment operating profit margin is expected to increase approximately 300 basis points year over year to 20.8%.

“The first quarter showed further performance progression both year over year and sequential quarter despite the disruptions during March due to COVID-19,” stated co-CEO John Plant.

Howmet Aerospace has commenced plans to reduce costs by $100 million.

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

In 2019, the businesses comprising Howmet Aerospace – including the former Alcoa Fastening Systems and Rings – generated more than $7 billion in revenue, up 5% from the prior year, with more than 70% of Howmet’s revenue derived from the aerospace market.  Operating profit increased 26% to $1.39 billion, while profit margin gained 330 basis points to 19.6%.

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