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May 1 (Reuters) - Howmet Aerospace HWM.N on Thursday raised its 2025 profit forecast, despite tariff impacts, as the supplier of castings and fasteners expects to pass on higher costs while continuing to fulfill strong demand from increased jet production.
Shares of the company rose over 6% in premarket trading.
The U.S. aerospace industry is seeking a tariff exemption to alleviate rising production costs and supply chain strain, but strong demand for parts continues to support some suppliers like Howmet and Honeywell.
Howmet CEO John Plant said in a statement that engine and planemakers continue to drive growth with "record backlogs", despite "some recent moderation in North American traffic growth, driven by tariff-related economic uncertainty."
The Pittsburgh-based supplier in February forecast better-than-expected first-quarter revenue and profits on strong aircraft demand, but had taken a conservative outlook for the full year, as planemakers wrestle with delays and tariffs.
The supplier to planemakers Boeing BA.N and Airbus AIR.PA also warned customers by letter in April that it could halt some shipments if impacted by tariffs announced by U.S. President Donald Trump, Reuters reported.
The updated outlook, which includes current assumptions on tariff impacts, projects adjusted profit per share between $3.36 and $3.44, up from the previous forecast of $3.13 to $3.21.
"While the tariff situation remains fluid, we expect to pass on tariff-related costs to our customers," Plant added.
Howmet reported a first-quarter revenue of $1.94 billion, up 6.4% from a year ago and in line with analysts' average estimate, per data compiled by LSEG.
Its adjusted profit per share for the quarter was 86 cents, surpassing Street expectations of 78 cents.
(Reporting By Allison Lampert in Montreal, Utkarsh Shetti and Anandita Mehrotra in Bengaluru; Editing by Vijay Kishore)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
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