Pittsburgh-based Howmet Aerospace Inc., in line with many other Pittsburgh manufacturers in the aerospace supply chain, took a hit in the second quarter due to both impacts from the Covid-19 pandemic on the industry and ongoing issues around production and grounding of Boeings 737 Max planes.

Its a tough start for the company, which in April became an independent company upon the completion of Arconic Inc.s split into Howmet and Arconic Corp.

Howmet Aerospace reported $1.25 billion in revenue in the second quarter of the year, down 31% from the same quarter in 2019. In more detail, the company saw its revenue in the commercial aerospace industry decrease by 36% and its revenue in the commercial transportation industry decrease by 54%.

Despite ongoing uncertainty and volatility in the aerospace market due to the pandemic, Howmet CEO John Plant provided a financial outlook for the remainder of the year. Plant said he expects full year 2020 revenue to total between $5.1 billion and $5.3 billion. In the third quarter, he said he anticipates revenue to total between $1 billion and $1.1 billion.

I wish we could be more certain, Plant said. I think the one thing that should be recognized is that we have done our best to give you guidance.

Howmet announced plans to reduce its previously stated capital expenditure expectations for 2020 from $200 million down to $175 million. Plant said the company expects volume in the third quarter to be lower again and then start to recover in the fourth quarter of the year.

Much of the outlook, however, depends on the unknown future of the Covid-19 pandemic and its impact on the production levels of aerospace giants like Boeing and Airbus. Its also, in part, hinged on Boeing recertifying and getting its 737 Max jets back in the air, since theyve been grounded after two deadly crashes in recent years.

Assuming recertification goes ahead then that will be good news, and Boeing plans to resume deliveries and increase build rates as we go into 2021, Plant said. That is the time we are looking forward to. I think the whole industry is looking forward to that time.

Continue reading here:

Howmet Aerospace eagerly awaits return of Boeing jets - Pittsburgh Business Times