hwm-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-3610

HOWMET AEROSPACE INC.

(Exact name of registrant as specified in its charter)


Delaware						25-0317820
(State of incorporation)						(I.R.S. Employer Identification No.)

201 Isabella Street, Suite 200, Pittsburgh, Pennsylvania 15212-5872

(Address of principal executive offices) (Zip code)

Investor Relations 412-553-1950

Office of the Secretary 412-553-1940

(Registrant’s telephone number including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $1.00 per share	HWM	New York Stock Exchange
$3.75 Cumulative Preferred Stock, par value $100.00 per share	HWM PR	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ✓ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ✓ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of April 28, 2023, there were 413,291,033 shares of common stock, par value $1.00 per share, of the registrant outstanding.

TABLE OF CONTENTS


		Page
Part I
Item 1.	Financial Statements and Supplementary Data	3
	Statement of Consolidated Operations for the First Quarter Ended March 31, 2023 and 2022	3
	Statement of Consolidated Comprehensive Income for the First Quarter Ended March 31, 2023 and 2022	4
	Consolidated Balance Sheet as of March 31, 2023 and December 31, 2022	5
	Statement of Consolidated Cash Flows for the First Quarter Ended March 31, 2023 and 2022	6
	Statement of Changes in Consolidated Equity for the First Quarter Ended March 31, 2023 and 2022	7

	Notes to the Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
Part II
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6.	Exhibits	29
	Signatures	29

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements and Supplementary Data.

Howmet Aerospace Inc. and subsidiaries

Statement of Consolidated Operations (unaudited)

(in millions, except per-share amounts)


	First quarter ended
	March 31,
	2023		2022
Sales (C)	$	1,603	$	1,324
Cost of goods sold (exclusive of expenses below)	1,164		950
Selling, general administrative, and other expenses	75		69
Research and development expenses	9		7
Provision for depreciation and amortization	69		66
Restructuring and other charges (D)	1		2
Operating income	285		230
Loss on debt redemption (N)	1		—
Interest expense, net	57		58
Other expense, net (F)	7		1
Income before income taxes	220		171
Provision for income taxes (G)	72		40


Net income	$	148	$	131

Amounts Attributable to Howmet Aerospace Common Shareholders (H):
Net income	$	147	$	130
Earnings per share:
Basic	$	0.36	$	0.31


Diluted	$	0.35	$	0.31

Average Shares Outstanding (H):
Basic	412		419
Diluted	418		425

The accompanying notes are an integral part of the consolidated financial statements.

Howmet Aerospace Inc. and subsidiaries

Statement of Consolidated Comprehensive Income (unaudited)

(in millions)


	First quarter ended
	March 31,
	2023		2022
Net income	$	148	$	131
Other comprehensive income (loss), net of tax (I):
Change in unrecognized net actuarial loss and prior service cost related to pension and other postretirement benefits	5		10
Foreign currency translation adjustments	34		(31)

Net change in unrecognized (losses) gains on cash flow hedges	(4)		20
Total Other comprehensive income (loss), net of tax	35		(1)
Comprehensive income	$	183	$	130

The accompanying notes are an integral part of the consolidated financial statements.

Howmet Aerospace Inc. and subsidiaries

Consolidated Balance Sheet (unaudited)

(in millions)


	March 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	537	$	791
Receivables from customers, less allowances of $1 in both 2023 and 2022 (J)	655		506
Other receivables	16		31
Inventories (K)	1,662		1,609
Prepaid expenses and other current assets	187		206

Total current assets	3,057		3,143
Properties, plants, and equipment, net (L)

SEC Form 10-Q filed by Howmet Aerospace Inc.