Strength in Aerospace Market Aids Howmet (HWM) Amid Cost Woes

Group 1: Company Performance and Growth Drivers - Howmet is experiencing growth due to an expanding defense budget, which is a catalyst for the company alongside its strong position in the commercial aerospace market [1][8] - The demand for wide-body aircraft is increasing, which supports original equipment manufacturer (OEM) spending and drives Howmet's sales as airlines purchase more aircraft [7] - In 2023, Howmet's shares gained 45.6%, outperforming the industry growth of 18.1% [9] Group 2: Financial Metrics and Shareholder Returns - In the first three months of 2024, Howmet paid out $21 million in dividends and repurchased shares worth $150 million, with a planned 40% increase in the dividend rate to 7 cents per share in Q3 2024 [2] - The cost of goods sold increased by 16.3% year over year to $4.8 billion in 2023, and selling, general, administrative, and other expenses rose by 15.6% due to higher employment costs and legal fees [10] Group 3: Market Risks - Howmet's international operations expose the company to risks from adverse currency fluctuations, particularly if the U.S. dollar strengthens, which could impact profit margins [3]