Howmet CEO Pitches Engine Part Ramp-Up After Boeing Plans 737 Max Production Boost
Synopsis
Speaking at a Bernstein conference, Plant emphasized the need to ramp up production, as one of its largest customers, Boeing, had manufactured more than 40 737 Max jets every month for four consecutive months.
Howmet Aerospace Inc. CEO John Plant on Friday pitched for ramping up the production of its engine parts after Boeing Co. (BA) revealed it plans to boost the manufacturing of the 737 Max jet.
Speaking at a Bernstein conference, Plant underscored the need to ramp up production as one of its largest customers, Boeing, revealed that it had manufactured more than 40 737 Max jets every month for four consecutive months.
The Virginia-headquartered company said it delivered 44 Boeing 737 Max jets in April, after 41, 44, and 40 aircraft in the prior three months.
Plant also stated that the demand for LEAP (Leading Edge Aviation Propulsion) engines is expected to increase, and companies like Howmet need to ramp up their parts production to meet this demand.
He also stated that the company expects demand for spares to increase, according to a transcript by MarketScreener.
Overall, the Howmet CEO sounded optimistic about the demand for narrowbody engines, but he said widebody aircraft demand is expected to pick up by 2026-27.
Plant also touched upon the impact of tariffs on the company, saying the net effect is expected to be lower due to strategic decisions taken earlier, alongside a hike in rates.
Howmet also expects a surge in demand for fasteners, after a fire at SPS Technologies’ factory in Pennsylvania impacted capacity.
"There's lots more to bid and we've got three customers already where we have production orders for as soon as we can make them," Plant said at a Bernstein conference, according to a Reuters report.
Howmet’s stock is up 54.58% year-to-date and 100.65% over the past 12 months.
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