Howmet Aerospace’s chief executive, John Plant, told investors at the Jefferies Global Industrials Conference in New York that the company remains “fine” with GE Aerospace’s $12 billion purchase of castings specialist Consolidated Precision Products (CPP). Plant emphasized that Howmet’s own expansion plans are on track to meet the surging demand for jet‑engine components.
GE Aerospace acquisition and market reaction
GE Aerospace announced Tuesday that it will acquire CPP to alleviate supply bottlenecks in the jet‑engine market. The news prompted a 10% dip in Howmet’s share price, reflecting investor concern that the deal could intensify competition.
Howmet’s response and growth outlook
Plant reassured the audience that Howmet is confident in its capabilities. “And you saw the intent, you know, yesterday was to look at developing it over the years. I think we should be fine with that,” he said.
He acknowledged questions about whether additional investment in CPP might disadvantage other players, but argued that the market’s overall growth will benefit all manufacturers.
Demand for engine parts is soaring as commercial aircraft manufacturers and defense contractors ramp up production. Howmet also supplies blades and vanes for gas turbines used in data centers, a segment expanding rapidly due to the AI boom.
Plant admitted the scale of the market’s growth is “testing us in many ways” and that the company had not anticipated building such a large volume of equipment. “The sheer scale of the capital expansion is certainly testing us,” he added.
Revenue targets
Looking ahead, Plant said Howmet aims to double its revenues sometime between 2025 and the next three‑to‑five years. He promised an update on those longer‑term goals during an upcoming earnings call.
“My statement was that we would, from the 2025, we would see a doubling of our revenues somewhere in the three‑ to five‑year time period,” Plant said. “I think I’m going to update that not today, but you know it will be coming at some point.”
Howmet’s confidence comes as the aerospace supply chain seeks to resolve lingering bottlenecks, and the company’s diversified product line positions it to capture a larger share of the expanding market.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
