Howmet Aerospace Inc. (NYSE:HWM) Q4 2022 Earnings Call Transcript

John Plant: In 2021, it seemed to be can much better than it was by the back end of 2022 for us. And when I talk about that, where we buy base metal, we had no issues all the way through. But where we buy somebody else’s alloy metal, that’s given us heartaches for sure, and that heartache definitely increased in the back end of 2022. And that’s impacted the stability in throughput, for example, of our ring segment in engine that it’s affected our faster business. And while we think we have scheduled appropriate, we’ve had outages of somebody else’s forge or say metal cincturing. We’ve had recently a fire in one of our, I’ll say, waste competitor. It also — it supplies us for certain parts. And so those — I’ll say that availability of metal has been much more prevalent in the last few months.

Now, again, hopefully, it begins to smooth out as we move into 2023. Again, I think it’s some months away before we get visibility. But I’ve got a list of items today where we’re in a, I’ll say, a low or no-build condition because of availability. But I’ll say I’d look more — to those two areas I talked about, which is rings and fasteners will be the areas which you’ve had the majority of the problem. And there’s also been a bit of a problem on titanium revert as well, but again, smoothing that through and trying to step up to the increasing titanium that we’re experiencing.

Ron Epstein: Got it. Got it. Thank you very much.

John Plant: Thank you.

Operator: Our next question will come from Gautam Khanna with Cowen. Please go ahead.

Gautam Khanna: Can you guys hear me?

John Plant: Can hear you now, Gautam.

Gautam Khanna: Terrific. Sorry about that earlier. I’m not sure what happened. Hey, I had a couple of questions. First, I was wondering, do you guys have a sense for where you were on Q4 production rates by the platforms that you guided for in 2023? So, like where you were on the 37, where you were on 320, et cetera?

John Plant: Okay. We were below — I think we were below 50% on the Airbus platforms just fractionally, let’s call it 48%, 49%. And I’m going to call it, high 20s — mid to high 20s on Boeing is my best guess. So, these are just guesses at this point.

Gautam Khanna: Okay. And 87, I imagine, is like two or zero, where do you think you were?

John Plant: Compared to one a month, you can call it, more like half a month.

Gautam Khanna: Got it. Were there big differences by the various segments, engine versus fasteners versus structures?

John Plant: That’s tough for me to picture all of that going back to last quarter. I think widebody was a particularly notable lower number for our fastener business in the fourth quarter. So, I know we were below whatever we built on the 787. I can’t do from memory across every platform in the last quarter, however, they just think about it or may it must be a follow-up question.

Gautam Khanna: Okay. And also just on 350 as well, A350 Q4 rate?