Howmet Aerospace is looking at cost cutting measures after the closures of some of its original equipment manufacturers (OEM) customers affected the company’s production.
The company, which began operating as a standalone business last week after officially separating from Arconic Inc, also announced it would be revising its earnings guidance. Howmet will release its revised guidance along with its Q1 2020 results later this month.
Howmet has OEM customers throughout Asia and Europe. Their moratoriums on operations, which are part of COVID-19 containment measures implemented by governments around the world, could not only impact Howmet’s production but also its finances.
The company said it was reassessing its financial outlook, although it couldn’t specify how much COVID-19-related closures will affect its top and bottom lines. The Pittsburgh-based specialty aluminum-maker is also planning to cut operational costs across some of its facilities to shore up its finances, however, it did not provide any further details. Howmet indicated it had an undrawn revolving credit facility worth $1.5bn.