Specialist
Former VP at Arconic Inc
Agenda
- Howmet's (NYSE: HWM) strengths and weaknesses – positioning post-split from Arconic (NYSE: ARNC)
- Key headwinds and tailwinds for A&D (aerospace and defense) suppliers – production cuts and recovery outlook
- Finance and liquidity outlook
- 12-18-month forecast
Questions
1.
Could you share an overview of the A&D [aerospace and defence] industry and tier 2 supplier dynamics, including any noteworthy trends?
2.
How would you characterise Howmet’s market positioning and core strengths and weaknesses?
3.
Could you break down Howmet’s major competitors and its key points of differentiation in each segment?
4.
Where would you expect the most growth in 2021? How would Howmet’s near- and long-term recovery strategies vary across its engines, fasteners and casting structure segments?
5.
How would you assess Howmet’s engine portfolio, and where will it be strongest or weakest with next generation aircraft?
6.
How do you think recovery will differ for Howmet’s forged wheel segment, which is entirely exposed to commercial transportation and remains profitable despite a revenue decline of over 50% in Q2 2020? Which strategies would you expect it to implement?
7.
What impact would you expect from Howmet’s exposure to the Boeing 737 Max and the associated regulatory challenges?
8.
How well is Howmet positioned to increase production as build rates begin to recover? How can it manage overhead costs and offset and protect the cost structure? On what timeline would you expect an almost full recovery?
9.
How long do you think it will take for Howmet to eliminate the trapped inventory it has incurred during the coronavirus period?
10.
How would you characterise Howmet’s pricing strategy and how is the macro environment affecting it?
11.
How much YoY growth would you expect from Howmet’s defence segment, especially from the Lockheed Martin F-35 Joint Strike Fighter programme?
12.
How can Howmet offset the decline in commercial with its defence and other industrial growth? How did it realise the Q2 growth across these segments?
13.
Howmet’s IGT [industrial gas turbine] segment is up 25% YoY. How much market share can Howmet claim, and what key drivers or trends would you note for the segment?
14.
What potential risks would you say Howmet faces with the upcoming US election and changes to defence spending?
15.
Is there anything else you would like to highlight about Howmet?
16.
Do you anticipate any major consolidation in the aerospace and defence industry, following the recent volatility?
