Howmet Aerospace reported fourth-quarter Fastening Systems revenue dropped 30% to $263 million “due to declines in the commercial aerospace and commercial transportation markets, primarily driven by COVID-19 and Boeing 737 MAX and 787 production declines.” 

Fastening Systems operating profit fell 52% to $48 million, driven by volume declines and unfavorable product mix, partially offset by variable and fixed cost reductions. Segment operating profit margin decreased approximately 800 basis points to 18.3%.

Overall Howmet revenue slipped 29% to $1.2 billion during the quarter, partially offset by growth in the defense aerospace and industrial gas turbine markets.  Q4 revenues increased 9% sequentially from the third quarter, while operating income declined 22% to $221 million.

Full-year Fastening Systems revenue fell 20% to $1.2 billion, while segment operating profit declined 37% to $247 million and operating margin dropped 560 basis points to 19.8%.

Overall Howmet revenue in 2020 decreased 26% to $5.3 billion, while income from continuing operations gained 67% to $211 million.

During the third quarter, Howmet laid off a total of 265 employees.  Layoffs at its plant in LaPorte, IN, began in early September when Howmet let 115 workers go.  Another 85 people are slating for layoffs on October 1, with 65 workers leaving on November 1.

Howmet Aerospace officially split from Arconic on April 1 to become an independent company composed of engine products, fastening systems, engineered structures and forged wheels businesses.

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