Materials supplier Howmet Aerospace posted higher second-quarter revenue than forecast on rising commercial aerospace demand, prompting the company to raise its full-year guidance.
The Pittsburgh, Pennsylvania-based company increased second-quarter revenue by 14pc to $1.88bn, exceeding the $1.8bn top end of its May guidance. Howmet raised its full-year revenue guidance to $7.4bn-7.48bn, up from $7.23bn-7.38bn previously.
Gains were driven by a 27pc increase in commercial aerospace revenue, the company said. The commercial aerospace outlook is robust as a result of rising travel demand and aging aircraft, leading to a backlog of orders.
Howmet said it is concerned that Boeing has trimmed some part orders, but orders still remain above build rates for 737 and 787 aircraft.
"The issue faced by Howmet Aerospace continues to be the aircraft manufacturers' ability to build and deliver aircraft on a consistent basis," chief executive John Plant said. Howmet expects Boeing this year to build 737 MAX aircraft at a rate of 22 per month, up from its prior expectation of 20 a month.
Howmet's engine product sales in the second quarter increased by 14pc to $933mn from the same time a year prior. Fastening systems revenue increased by 20pc to $394mn, and engineered structures revenue increased by 38pc to $275mn.
Quarterly sales in Howmet's forged wheels unit, which manufactures aluminum-based truck wheels, decreased by 7pc from a year earlier to $278mn on lower volumes in the commercial transportation market and lower aluminum costs.
Total profit in the quarter increased to $266mn, up from $193mn in the prior-year period.
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