Howmet Aerospace lifts dividend, annual forecasts on robust parts demand
May 2 (Reuters) -Howmet Aerospace HWM.N on Thursday raised its full-year profit and revenue forecasts and said it would raise its quarterly dividend by two cents per share thanks to robust demand for its engine products and fastening systems.
Shares of the Pennsylvania-based company jumped 9.3% before the bell after it also reported better-than-expected results for the first quarter.
A surge in post-pandemic travel demand has prompted plane manufacturers to buy more parts, benefiting suppliers such as Howmet, which counts Airbus SE AIR.PA and Boeing BA.N as its customers.
Howmet now expects 2024 revenue between $7.23 billion and $7.38 billion, up from its prior forecast of $7 billion to $7.2 billion.
The forecast assumes an average build rate of 20 737 MAX aircraft per month this year at Boeing, Howmet CEO John Plant said in a statement. The planemaker's production has dropped in recent weeks as it works to fix quality issues.
"However, a more favorable demand outlook in other aspects of our business have driven an overall $200 million increase in Howmet Aerospace's full-year 2024 revenue guidance," Plant said.
Full-year adjusted profit per share is now expected to be $2.31 to $2.39, compared with its earlier forecast of $2.10 to $2.20 per share.
For the quarter through March, adjusted profit per share rose to 57 cents, beating expectations of 52 cents.
Howmet expects to increase its quarterly dividend to $0.07 per share from the third quarter, subject to board approval.
Reporting by Anandita Mehrotra, Abhijith Ganapavaram in Bengaluru; Editing by Devika Syamnath
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