Howmet Aerospace reported Fastening Systems revenue in the first quarter of 2021 declined 29% to $272 million “due to declines in the commercial aerospace market, primarily driven by COVID-19, Boeing 737 MAX, and Boeing 787 production declines.” Segment operating profit dropped 53% to $45 million, driven by volume declines and unfavorable product mix, partially offset by variable and fixed cost reductions. Segment operating profit margin decreased approximately 840 basis points year over year to 16.5%.

Consolidated Q1 results fell 26% to $1.2 billion “due to disruptions in the commercial aerospace market, primarily driven by COVID-19, Boeing 737 MAX, and Boeing 787 production declines, partially offset by growth in the commercial transportation, defense aerospace, and industrial gas turbine markets.”

Income from continuing operations was nearly halved to $80 million as the company took a $16 million charge from special items, principally related to plant fire costs and restructuring and other charges.

Q1 operating income dipped 27% to $189 million, while operating income margin, excluding special items, decreased approximately 200 basis points year over year to 17.2%. 

“We see the end of the second quarter as the inflection point for a commercial aerospace recovery, led by the narrow body market, that should support a stronger second half 2021, particularly for Engine Products and Engineered Structures,” stated co-CEO John Plant. “The Commercial Transportation market remains robust, supporting Forged Wheels, although industry supply chain constraints can limit growth in the near term.” Web: Howmet.com