PITTSBURGH--(BUSINESS WIRE)--Howmet Aerospace, Inc. (NYSE: HWM) indicated that certain original equipment manufacturer customers have suspended manufacturing operations in North America and Europe on a temporary basis due to matters associated with COVID-19 (coronavirus). These temporary suspensions are impacting operations at certain Howmet Aerospace facilities. As a result, the Company is taking a series of actions to address the financial impact.
Howmet Aerospace has commenced plans to reduce costs and is targeting approximately $100M of run rate savings.
In addition, the Company has suspended the dividend on its Common Stock, preserving cash and providing additional flexibility in the current environment.
Although the Company is currently unable to reasonably estimate the impact of COVID-19 on its 2020 outlook, Howmet Aerospace does expect this situation to have an impact on its 2020 financial performance and is in the process of reassessing its full-year financial guidance. The Company plans to provide an update to its financial outlook in its first quarter 2020 earnings release.
Executive Chairman and Co-CEO John Plant said, “It is important that we keep our production efficient and working safely during this crisis period. Howmet Aerospace is vital to national defense, to the commercial airline industry, and to the rebound of the global economy that relies heavily on transportation.” Plant added, “Our company’s financial position is strong. Reducing costs in our operations in the face of this pandemic will help preserve our financial strength through these challenging times.”
On April 6, 2020, the Company will redeem all $1.0 billion of its outstanding 6.150% Notes due 2020 and $300 million aggregate principal amount of its outstanding 5.40% Notes due 2021. Cash used to paydown notes includes the $700 million cash dividend received from the separated Arconic Corporation on April 1, 2020 as well as a portion of the $1.7 billion of cash on Howmet Aerospace’s balance sheet as of December 31, 2019.
As of April 6, Howmet Aerospace has an undrawn revolving credit facility of $1.5 billion.
About Howmet Aerospace
Howmet Aerospace, Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s primary businesses focus on jet engine components, aerospace fastening systems, and titanium structural parts necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged wheels for commercial transportation. With nearly 1,300 granted and pending patents, the Company’s differentiated technologies enable lighter, more fuel-efficient aircraft to operate with a lower carbon footprint. In 2019, the businesses of Howmet Aerospace reported annual revenue of over $7 billion. For more information, visit www.howmet.com. Follow @howmet: LinkedIn, Twitter, Instagram, Facebook, and YouTube.
