Howmet Aerospace Reports First Quarter 2021 Results
First Quarter 2021 Highlights
- Revenue of $1.2 billion, down 26% year over year
- Income from continuing operations of $80 million, or $0.18 per share, versus $153 million, or $0.35 per share, in the first quarter 2020
- Income from continuing operations excluding special items of $96 million, or $0.22 per share, versus $194 million, or $0.44 per share, in the first quarter 2020
- Operating income of $189 million, down 27% year over year
- Operating income excluding special items of $208 million, down 34% year over year
- Cash used for operations of ($6 million) and adjusted free cash flow of ($4 million); cash used for financing activities of ($368 million); and cash provided from investing activities of $3 million
- Cash balance at end of quarter at $1.2 billion after redeeming approximately $361 million of debt; Revolving credit facility undrawn at $1 billion
2021 Guidance* Updated
- Updated Full Year 2021 Guidance: Revenue $5.05-$5.20 billion, versus prior $5.05-$5.25 billion, with an unchanged outlook of $5.10 billion, Adjusted EBITDA $1.125-$1.20 billion, versus prior $1.07-$1.15 billion, with an increased outlook of $1.15 billion, Earnings Per Share Excluding Special Items $0.91-$1.02, versus prior $0.75-$0.89, with an increased outlook of $0.95, Adjusted Free Cash Flow $390-$460 million, versus prior $350-$450 million, with an increased outlook of $425 million
- Issued Second Quarter 2021 Guidance: Revenue $1.17-$1.23 billion with an outlook of $1.20 billion, Adjusted EBITDA $260-$270 million with an outlook of $265 million, Earnings Per Share Excluding Special Items $0.19-$0.21 with an outlook of $0.20
Key Announcements
- On January 15, 2021, Howmet Aerospace completed early redemption of 5.40% Notes due 2021 in the aggregate principal amount of approximately $361 million.
- On May 3, 2021, the Company completed early redemption of all $476 million aggregate principal amount of its outstanding 5.87% Notes due 2022 at an aggregate redemption price of approximately $500 million.
- On March 29, 2021, Howmet Aerospace amended its Five-Year Revolving Credit Agreement. This amendment provides certain relief under the financial covenant until December 31, 2022. The $1 billion revolving credit facility remains undrawn.
- The Company is expecting to reinstate a quarterly dividend of $0.02 per share of its common stock, beginning in the third quarter 2021, subject to the discretion and final approval of the Board of Directors.
* Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures – for further detail, see “2021 Guidance Updated” below.
PITTSBURGH–(BUSINESS WIRE)–Howmet Aerospace (NYSE:HWM) today reported first quarter 2021 results. The Company reported first quarter revenues of $1.2 billion, down 26% year over year due to disruptions in the commercial aerospace market, primarily driven by COVID-19, Boeing 737 MAX, and Boeing 787 production declines, partially offset by growth in the commercial transportation, defense aerospace, and industrial gas turbine markets.
Howmet Aerospace reported income from continuing operations of $80 million, or $0.18 per share, in the first quarter 2021 versus income from continuing operations of $153 million, or $0.35 per share, in the first quarter 2020. Income from continuing operations excluding special items was $96 million, or $0.22 per share, in the first quarter 2021, versus $194 million, or $0.44 per share, in the first quarter 2020. Income from continuing operations in the first quarter 2021 included a $16 million charge from special items, principally related to plant fire costs and restructuring and other charges.
First quarter 2021 operating income was $189 million, down 27% year over year. Operating income excluding special items was $208 million, down 34% year over year. The year-over-year decline was due to significant disruptions in the commercial aerospace market, driven by COVID-19, Boeing 737 MAX, and Boeing 787 production declines, resulting in unfavorable volume and product mix. The decline was partially offset by growth in the commercial transportation, defense aerospace, and industrial gas turbine markets, variable and fixed cost reductions, and favorable product pricing. Operating income margin, excluding special items, was down approximately 200 basis points year over year to 17.2%.
Howmet Aerospace Executive Chairman and Co-Chief Executive Officer John Plant said, “Howmet Aerospace delivered a healthy start to 2021 with first quarter 2021 profits and margins exceeding expectations. Our first quarter 2021 adjusted EBITDA margin of 22.7% was similar to fourth quarter 2020 despite approximately $30 million less revenue, supported by favorable product pricing and effective cost performance. First quarter 2021 adjusted free cash flow was near breakeven, a first quarter record, demonstrating our continued focus on cash generation. We expect adjusted free cash flow to be less seasonal going forward, and expect positive cash generation through the remaining quarters of 2021.”
Mr. Plant continued, “We see the end of the second quarter as the inflection point for a commercial aerospace recovery, led by the narrow body market, that should support a stronger second half 2021, particularly for Engine Products and Engineered Structures. The Commercial Transportation market remains robust, supporting Forged Wheels, although industry supply chain constraints can limit growth in the near term. As we look to the rest of 2021 and beyond, we are well positioned to emerge from the pandemic in a stronger, more profitable position.”
“Our liquidity position is strong as a result of our strict and disciplined approach to costs and spending. We ended first quarter 2021 with $1.24 billion of cash after the early redemption of our April 2021 notes for approximately $361 million, and we completed the early redemption of our February 2022 notes for approximately $500 million on May 3, 2021. During the quarter, we amended our undrawn $1 billion revolving credit facility and our next debt maturity is not until October 2024.”
On April 1, 2020, Arconic Inc. completed the separation of its business into two independent, publicly-traded companies: Howmet Aerospace Inc. (the new name for Arconic Inc.) and Arconic Corporation. The financial results of Arconic Corporation for all periods prior to April 1, 2020 have been retrospectively reflected in the Statement of Consolidated Operations as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods prior to April 1, 2020. Additionally, the related assets and liabilities associated with Arconic Corporation in the December 31, 2019 Consolidated Balance Sheet are classified as assets and liabilities of discontinued operations. The cash flows, comprehensive income, and equity related to Arconic Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows, Statement of Consolidated Comprehensive Income, and Statement of Changes in Consolidated Equity, respectively, for all periods prior to April 1, 2020.
First Quarter 2021 Segment Performance
Engine Products
Engine Products reported revenue of $534 million, a decrease of 32% year over year due to declines in the commercial aerospace market driven by COVID-19 and Boeing 737 MAX production declines, partly offset by growth in the defense aerospace and industrial gas turbine markets. Segment operating profit was $101 million, down 39% year over year, driven by volume declines, partially offset by variable and fixed cost reductions. Segment operating profit margin decreased approximately 220 basis points year over year to 18.9%.
Fastening Systems
Fastening Systems reported revenue of $272 million, a decrease of 29% year over year due to declines in the commercial aerospace market, primarily driven by COVID-19, Boeing 737 MAX, and Boeing 787 production declines. Segment operating profit was $45 million, down 53% year over year, driven by volume declines and unfavorable product mix, partially offset by variable and fixed cost reductions. Segment operating profit margin decreased approximately 840 basis points year over year to 16.5%.
Engineered Structures
Engineered Structures reported revenue of $176 million, a decrease of 36% year over year due to declines in the commercial aerospace market, driven by COVID-19, Boeing 787, and Boeing 737 MAX production declines, partly offset by growth in the defense aerospace market. Segment operating profit was $10 million, down 64% year over year, driven by volume declines and unfavorable product mix, partially offset by variable and fixed cost reductions. Segment operating profit margin decreased approximately 450 basis points year over year to 5.7%.
Forged Wheels
Forged Wheels reported revenue of $227 million, an increase of 19% year over year due to strength in the commercial transportation market. Segment operating profit was $70 million, up 40% year over year, driven by volume increases, cost reductions, and maximizing production in low-cost countries. Segment operating profit margin increased approximately 460 basis points year over year to 30.8%.
2021 Guidance* Updated
|
2Q 21 Guidance |
FY 2021 Guidance |
|
|||||||||||
|
Low |
Outlook |
High |
|
Low |
Outlook |
High |
|
||||||
|
Revenue |
$1.17B |
$1.20B |
$1.23B |
|
$5.05B |
$5.10B |
$5.20B |
|
|||||
|
Adj. EBITDA |
$260M |
$265M |
$270M |
|
$1.125B |
$1.15B |
$1.20B |
|
|||||
|
Adj. EBITDA Margin1 |
22.2% |
22.1% |
22.0% |
|
22.3% |
22.5% |
23.1% |
|
|||||
|
Adj. Earnings per Share1 |
$0.19 |
$0.20 |
$0.21 |
|
$0.91 |
$0.95 |
$1.02 |
|
|||||
|
Adj. Free Cash Flow |
|
|
|
|
$390M |
$425M |
$460M |
|
|||||
|
1) |
|
Excluding Special Items |
* Howmet Aerospace has not provided reconciliations of the forward-looking non-GAAP financial measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share or earnings per share excluding special items, and adjusted free cash flow, to the most directly comparable GAAP financial measures. Such reconciliations are not available without unreasonable efforts due to the variability and complexity with respect to the charges and other components excluded from the non-GAAP measures, such as the effects of foreign currency movements, gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. These reconciling items are in addition to the inherent variability already included in the GAAP measures, which includes, but is not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Completed Early Redemption of All Outstanding 5.40% Notes due 2021 for Approximately $361 Million
Howmet Aerospace redeemed all of its outstanding 5.40% Notes due 2021 in the aggregate principal amount of approximately $361 million on January 15, 2021. The notes were redeemed at 100% of the principal amount of the notes, plus accrued and unpaid interest up to, but not including, the redemption date. As a result, interest costs to the Company are estimated to be reduced in 2021 by approximately $19 million.
Completed Early Redemption of All Outstanding 5.87% Notes due 2022 at an Aggregate Redemption Price of Approximately $500 Million
Howmet Aerospace completed the early redemption on May 3, 2021 of all $476 million aggregate principal amount of its outstanding 5.87% Notes due 2022 at an aggregate redemption price of approximately $500 million. As a result, interest costs to the Company are estimated to be reduced in 2021 by approximately $19 million and approximately $28 million on an annual basis. The Company’s next debt maturity is in October 2024.
Amended Five-Year Revolving Credit Agreement
On March 29, 2021, Howmet Aerospace successfully amended its Five-Year Revolving Credit Agreement. This amendment provides certain relief under the financial covenant until December 31, 2022. The $1 billion revolving credit facility remains undrawn.
Expecting to Reinstate its Dividend on Common Stock Beginning in the Third Quarter 2021
Howmet Aerospace expects to reinstate a quarterly dividend of $0.02 per share of the Company’s common stock, beginning in the third quarter 2021, subject to the discretion and final approval of the Board of Directors each quarter after the Board’s consideration of all factors it deems relevant and subject to applicable law and contractual considerations.
Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, May 6, 2021. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on May 6, via the “Investors” section of the Howmet Aerospace website. A link to the press release will also be available via Howmet Aerospace’s Twitter handle @HowmetAerospace at https://twitter.com/howmetaerospace.
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 1,150 granted and pending patents, the Company’s differentiated technologies enable lighter, more fuel-efficient aircraft to operate with a lower carbon footprint. For more information, visit www.howmet.com. Follow: LinkedIn, Twitter, Instagram, Facebook, and YouTube.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of similar meaning. All statements that reflect Howmet Aerospace’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of end markets; future financial results or operating performance; future strategic actions; Howmet Aerospace’s strategies, outlook, and business and financial prospects; and any future dividends or share repurchases. These statements reflect beliefs and assumptions that are based on Howmet Aerospace’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) uncertainty of the duration, extent and impact of the COVID-19 pandemic on Howmet Aerospace’s business, results of operations, and financial condition; (b) deterioration in global economic and financial market conditions generally, including as a result of pandemic health issues (including COVID-19 and its effects, among other things, on global supply, demand, and distribution disruptions as the COVID-19 pandemic continues and results in an increasingly prolonged period of travel, commercial and/or other similar restrictions and limitations); (c) unfavorable changes in the markets served by Howmet Aerospace; (d) the impact of potential cyber attacks and information technology or data security breaches; (e) the loss of significant customers or adverse changes in customers’ business or financial conditions; (f) manufacturing difficulties or other issues that impact product performance, quality or safety; (g) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (h) the inability to achieve revenue growth, cash generation, cost savings, restructuring plans, cost reductions, improvement in profitability, or strengthening of competitiveness and operations anticipated or targeted; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace’s global operations, including compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation, which can expose Howmet Aerospace to substantial costs and liabilities; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace’s Form 10-K for the year ended December 31, 2020 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace’s consolidated financial information but is not presented in Howmet Aerospace’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
___________________________________
|
Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Operations (unaudited) (in U.S. dollar millions, except per-share and share amounts) |
|||||||||||
|
|
Quarter ended |
||||||||||
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
Sales |
$ |
1,209 |
|
|
$ |
1,238 |
|
|
$ |
1,634 |
|
|
|
|
|
|
|
|
||||||
|
Cost of goods sold (exclusive of expenses below) |
873 |
|
|
872 |
|
|
1,183 |
|
|||
|
Selling, general administrative, and other expenses |
65 |
|
|
58 |
|
|
79 |
|
|||
|
Research and development expenses |
5 |
|
|
4 |
|
|
4 |
|
|||
|
Provision for depreciation and amortization |
68 |
|
|
67 |
|
|
71 |
|
|||
|
Restructuring and other charges(1) |
9 |
|
|
16 |
|
|
39 |
|
|||
|
Operating income |
189 |
|
|
221 |
|
|
258 |
|
|||
|
|
|
|
|
|
|
||||||
|
Interest expense |
72 |
|
|
76 |
|
|
84 |
|
|||
|
Other expense (income), net |
4 |
|
|
74 |
|
|
(24) |
|
|||
|
|
|
|
|
|
|
||||||
|
Income from continuing operations before income taxes |
113 |
|
|
71 |
|
|
198 |
|
|||
|
Provision (benefit) for income taxes |
33 |
|
|
(35) |
|
|
45 |
|
|||
|
Income from continuing operations after income taxes |
80 |
|
|
106 |
|
|
153 |
|
|||
|
Income from discontinued operations after income taxes |
— |
|
|
— |
|
|
62 |
|
|||
|
|
|
|
|
|
|
||||||
|
Net income |
$ |
80 |
|
|
$ |
106 |
|
|
$ |
215 |
|
|
|
|
|
|
|
|
||||||
|
Amounts Attributable to Howmet Aerospace Common Shareholders: |
|
|
|
|
|
||||||
|
Earnings per share – Basic(2)(3)(5): |
|
|
|
|
|
||||||
|
Continuing Operations |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.35 |
|
|
Discontinued Operations |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.14 |
|
|
Net income per share |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.49 |
|
|
Average number of shares(3)(4) |
433,598,797 |
|
|
433,280,936 |
|
|
435,015,454 |
|
|||
|
|
|
|
|
|
|
||||||
|
Earnings per share – Diluted(2)(3)(5): |
|
|
|
|
|
||||||
|
Continuing Operations |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.35 |
|
|
Discontinued Operations |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.14 |
|
|
Net income per share |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.49 |
|
|
Average number of shares(4) |
439,337,643 |
|
|
437,979,216 |
|
|
440,396,706 |
|
|||
|
|
|
|
|
|
|
||||||
|
Common stock outstanding at the end of the period |
434,081,077 |
|
|
432,906,377 |
|
|
436,085,504 |
|
|||
|
(1) |
Restructuring and other charges for the quarter ended March 31, 2021 included severance costs, asset impairments, pension settlement charges and other exit costs. Restructuring and other charges for the quarter ended December 31, 2020 and March 31, 2020 included severance costs, asset impairments and other exit costs. | |
|
(2) |
In order to calculate both basic and diluted earnings per share, preferred stock dividends declared of $1 for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 need to be subtracted from Net income. | |
|
(3) |
For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares related to share equivalents associated with outstanding employee stock options and awards. | |
|
(4) |
Basic and diluted average number of shares and common stock outstanding at the end of the period for the quarter ended December 31, 2020 do not reflect the full impact of the share repurchases made at different times during the fourth quarter of 2020. | |
|
(5) |
Per share amounts are calculated independently for Continuing and Discontinued operations, therefore, the sum of the amounts may not equal the total Net Income per share. |
|
Howmet Aerospace Inc. and subsidiaries Consolidated Balance Sheet (unaudited) (in U.S. dollar millions) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,238 |
|
|
$ |
1,610 |
|
|
Receivables from customers, less allowances of $1 in 2021 and $1 in 2020 |
339 |
|
|
328 |
|
||
|
Other receivables(1) |
96 |
|
|
29 |
|
||
|
Inventories |
1,453 |
|
|
1,488 |
|
||
|
Prepaid expenses and other current assets |
202 |
|
|
217 |
|
||
|
Total current assets |
3,328 |
|
|
3,672 |
|
||
|
|
|
|
|
||||
|
Properties, plants, and equipment, net |
2,524 |
|
|
2,592 |
|
||
|
Goodwill |
4,086 |
|
|
4,102 |
|
||
|
Deferred income taxes |
227 |
|
|
272 |
|
||
|
Intangibles, net |
563 |
|
|
571 |
|
||
|
Other noncurrent assets |
243 |
|
|
234 |
|
||
|
Total assets |
$ |
10,971 |
|
|
$ |
11,443 |
|
|
|
|
|
|
||||
|
Liabilities |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable, trade |
$ |
596 |
|
|
$ |
599 |
|
|
Accrued compensation and retirement costs |
171 |
|
|
205 |
|
||
|
Taxes, including income taxes |
93 |
|
|
102 |
|
||
|
Accrued interest payable |
88 |
|
|
89 |
|
||
|
Other current liabilities |
243 |
|
|
289 |
|
||
|
Short-term debt |
489 |
|
|
376 |
|
||
|
Total current liabilities |
1,680 |
|
|
1,660 |
|
||
|
Long-term debt, less amount due within one year |
4,224 |
|
|
4,699 |
|
||
|
Accrued pension benefits |
941 |
|
|
985 |
|
||
|
Accrued other postretirement benefits |
159 |
|
|
198 |
|
||
|
Other noncurrent liabilities and deferred credits |
305 |
|
|
324 |
|
||
|
Total liabilities |
7,309 |
|
|
7,866 |
|
||
|
|
|
|
|
||||
|
Equity |
|
|
|
||||
|
Howmet Aerospace shareholders’ equity: |
|
|
|
||||
|
Preferred stock |
55 |
|
|
55 |
|
||
|
Common stock |
434 |
|
|
433 |
|
||
|
Additional capital |
4,671 |
|
|
4,668 |
|
||
|
Retained earnings |
443 |
|
|
364 |
|
||
|
Accumulated other comprehensive loss |
(1,941) |
|
|
(1,943) |
|
||
|
Total equity |
3,662 |
|
|
3,577 |
|
||
|
Total liabilities and equity |
$ |
10,971 |
|
|
$ |
11,443 |
|
|
(1) |
Includes a deferred purchase program receivable of $68 for the March 31, 2021 period and $12 for the December 31, 2020 period. |
|
Howmet Aerospace and subsidiaries Statement of Consolidated Cash Flows (unaudited) (in U.S. dollar millions) |
|||||||
|
|
Three months ended March 31, |
||||||
|
|
2021 |
|
2020 |
||||
|
Operating activities |
|
|
|
||||
|
Net income |
$ |
80 |
|
|
$ |
215 |
|
|
Adjustments to reconcile net income to cash provided from operations: |
|
|
|
||||
|
Depreciation and amortization |
68 |
|
|
129 |
|
||
|
Deferred income taxes |
10 |
|
|
19 |
|
||
|
Restructuring and other charges |
9 |
|
|
21 |
|
||
|
Net loss from investing activities—asset sales |
3 |
|
|
2 |
|
||
|
Net periodic pension benefit cost |
4 |
|
|
26 |
|
||
|
Stock-based compensation |
6 |
|
|
13 |
|
||
|
Other |
14 |
|
|
25 |
|
||
|
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and |
|
|
|
||||
|
Increase in receivables |
(144) |
|
|
(210) |
|
||
|
Decrease (increase) in inventories |
20 |
|
|
(136) |
|
||
|
Decrease (increase) in prepaid expenses and other current assets |
23 |
|
|
(2) |
|
||
|
Increase (decrease) in accounts payable, trade(1) |
26 |
|
|
(132) |
|
||
|
Decrease in accrued expenses |
(92) |
|
|
(173) |
|
||
|
Increase in taxes, including income taxes |
12 |
|
|
90 |
|
||
|
Pension contributions |
(29) |
|
|
(56) |
|
||
|
Increase in noncurrent assets |
(2) |
|
|
— |
|
||
|
Decrease in noncurrent liabilities |
(14) |
|
|
(39) |
|
||
|
Cash used for operations |
(6) |
|
|
(208) |
|
||
|
|
|
|
|
||||
|
Financing Activities |
|
|
|
||||
|
Net change in short-term borrowings (original maturities of three months or less) |
(2) |
|
|
2 |
|
||
|
Additions to debt (original maturities greater than three months)(2) |
— |
|
|
1,200 |
|
||
|
Payments on debt (original maturities greater than three months)(3) |
(361) |
|
|
— |
|
||
|
Debt issuance costs |
(1) |
|
|
(45) |
|
||
|
Proceeds from exercise of employee stock options |
8 |
|
|
30 |
|
||
|
Dividends paid to shareholders |
— |
|
|
(9) |
|
||
|
Other |
(12) |
|
|
(33) |
|
||
|
Cash (used for) provided from financing activities |
(368) |
|
|
1,145 |
|
||
|
Investing Activities |
|
|
|
||||
|
Capital expenditures(1) |
(55) |
|
|
(152) |
|
||
|
Proceeds from the sale of assets and businesses(4) |
— |
|
|
114 |
|
||
|
Cash receipts from sold receivables |
57 |
|
|
48 |
|
||
|
Other |
1 |
|
|
1 |
|
||
|
Cash provided from investing activities |
3 |
|
|
11 |
|
||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(1) |
|
|
(8) |
|
||
|
Net change in cash, cash equivalents and restricted cash |
(372) |
|
|
940 |
|
||
|
Cash, cash equivalents and restricted cash at beginning of year |
1,611 |
|
|
1,703 |
|
||
|
Cash, cash equivalents and restricted cash at end of year |
$ |
1,239 |
|
|
$ |
2,643 |
|
Contacts
Investor Contact
Paul T. Luther
(412) 553-1950
Paul.Luther@howmet.com
Media Contact
Paul Erwin
(412) 553-2666
Paul.Erwin@howmet.com