Summary
Howmet Aerospace Inc. (HWM) reported its financial results for the second quarter and the first six months of 2021. The company demonstrated a significant recovery from the prior year, driven by improved performance across most of its segments, particularly Forged Wheels and recovering aerospace demand. Sales for the second quarter of 2021 were $1,195 million, a 5% decrease from $1,253 million in Q2 2020, primarily due to lower commercial aerospace volumes impacted by COVID-19 and Boeing 787 production declines. However, this was partially offset by growth in commercial transportation and industrial markets, as well as favorable pricing. Net income from continuing operations for the quarter was $74 million ($0.17 per diluted share), a substantial improvement from a net loss of $84 million (-$0.19 per diluted share) in Q2 2020. For the first six months of 2021, sales were $2,404 million, down 17% from $2,887 million in the same period of 2020, again reflecting the impact of COVID-19 on aerospace markets. Despite the sales decline, net income from continuing operations rose to $154 million ($0.35 per diluted share) from $69 million ($0.15 per diluted share) in the first half of 2020. This improvement was driven by significant reductions in restructuring and other charges and lower interest expenses, alongside cost savings initiatives. The company also repurchased $200 million of its common stock during the second quarter, demonstrating a commitment to shareholder returns.
Financial Highlights
48 data points| Revenue | $1.20B |
| R&D Expenses | $4.00M |
| SG&A Expenses | $55.00M |
| Operating Income | $207.00M |
| Interest Expense | $66.00M |
| Net Income | $74.00M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 432.00M |
| Shares Outstanding (Diluted) | 437.00M |
Key Highlights
- 1Howmet Aerospace returned to profitability in Q2 2021 with net income from continuing operations of $74 million, a significant turnaround from a net loss of $84 million in Q2 2020.
- 2Sales for Q2 2021 were $1,195 million, down 5% year-over-year, mainly impacted by reduced commercial aerospace demand due to COVID-19 and specific aircraft production issues (Boeing 787).
- 3The Forged Wheels segment showed remarkable growth, with Q2 2021 sales up 103% year-over-year, driven by strong commercial transportation market demand.
- 4Restructuring and other charges decreased substantially to $5 million in Q2 2021 from $105 million in Q2 2020, contributing to the improved net income.
- 5Interest expense decreased significantly by 38% in Q2 2021 compared to Q2 2020, a result of debt redemptions and lower overall debt levels.
- 6The company repurchased approximately $200 million of its common stock during Q2 2021, indicating confidence and a commitment to returning capital to shareholders.
- 7Despite ongoing challenges in the aerospace sector, the company maintains a positive outlook with expected recovery in commercial transportation and industrial markets, alongside continued cost reduction efforts.