Howmet’s Protection of the F-35 Program Despite Lockheed Martin’s Actions
02 Dicembre 2023 - 2:22AM
Business Wire
Howmet Aerospace (NYSE:HWM) wishes to briefly comment on the
lawsuit filed by Lockheed Martin yesterday concerning the F-35
Joint Strike Fighter Program (the “F-35 Program”). Contrary to the
allegations in Lockheed Martin’s complaint, Howmet takes its
contractual and regulatory obligations seriously and believes it
has complied with those obligations in all material respects.
Howmet has been a proud supplier to Lockheed Martin and other
entities that participate in the F-35 Program for decades. Howmet
supplies titanium ingot, billet, sheet and plate (the “Products”)
to Lockheed Martin and other customers that also serve as suppliers
to Lockheed Martin (collectively, and including Lockheed Martin,
the “Customers”). The Products are made by mixing titanium sponge
and titanium scrap metal that is reverted back to Howmet by its
Customers to recycle into new Product.
Russia’s invasion of Ukraine in early 2022 dramatically reduced
global titanium sponge supply. As a result, Howmet’s titanium
sponge suppliers drastically increased their prices, contrary to
their agreements with Howmet.
At the same time, further exacerbating the situation, Lockheed
Martin permitted Customers to sell their revert scrap metal to
third parties rather than provide it to Howmet as contractually
required. This allowed the Customers to profit from highly inflated
prices on the open market.
Despite these significant challenges, Howmet continued to
purchase titanium sponge and titanium scrap metal on the open
market in order to supply the F-35 Program and our Customers,
including Lockheed Martin.
Since 2022, Howmet has been transparent with Lockheed Martin
about these challenges and has acted in good faith to attempt to
reach a reasonable resolution for the benefit and long-term health
of the F-35 Program. While such discussions were still ongoing,
Lockheed Martin unfortunately chose to file a meritless lawsuit
seeking to compel Howmet to continue to supply Product at prices
that no longer reflect commercial reality and on terms that Howmet
believes it is not contractually obligated to provide. Howmet looks
forward to defending itself vigorously in court against Lockheed
Martin’s claims. In the meantime, Howmet remains open to discussing
a reasonable resolution.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as “anticipates,” “believes,” “could,” “envisions,”
“estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,”
“may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,”
“targets,” “will,” “would,” or other words of similar meaning. All
statements that reflect Howmet Aerospace’s expectations,
assumptions or projections about the future, other than statements
of historical fact, are forward-looking statements, including,
without limitation, statements relating to results of legal
proceedings and forecasts and outlook relating to the condition of
end markets. These statements reflect beliefs and assumptions that
are based on Howmet Aerospace’s perception of historical trends,
current conditions and expected future developments, as well as
other factors Howmet Aerospace believes are appropriate in the
circumstances. Forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and
changes in circumstances that are difficult to predict, which could
cause actual results to differ materially from those indicated by
these statements. Such risks and uncertainties include, but are not
limited to: (a) deterioration in global economic and financial
market conditions generally; (b) unfavorable changes in the markets
served by Howmet Aerospace; (c) the loss of significant customers
or adverse changes in customers’ business or financial conditions;
(d) manufacturing difficulties or other issues that impact product
performance, quality or safety; (e) inability of suppliers to meet
obligations due to supply chain disruptions or otherwise; (f)
geopolitical, economic, and regulatory risks relating to Howmet
Aerospace’s global operations; (g) the outcome of contingencies,
including legal proceedings, government or regulatory
investigations, and environmental remediation, which can expose
Howmet Aerospace to substantial costs and liabilities; (h) failure
to comply with government contracting regulations; and (i) the
other risk factors summarized in Howmet Aerospace’s Form 10-K for
the year ended December 31, 2022 and other reports filed with the
U.S. Securities and Exchange Commission. The statements in this
release are made as of the date of this release, even if
subsequently made available by Howmet Aerospace on its website or
otherwise. Howmet Aerospace disclaims any intention or obligation
to update publicly any forward-looking statements, whether in
response to new information, future events, or otherwise, except as
required by applicable law. Howmet Aerospace further notes that the
outcome of litigation (including that referenced in this release)
is uncertain.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh,
Pennsylvania, is a leading global provider of advanced engineered
solutions for the aerospace and transportation industries. The
Company’s primary businesses focus on jet engine components,
aerospace fastening systems, and airframe structural components
necessary for mission-critical performance and efficiency in
aerospace and defense applications, as well as forged aluminum
wheels for commercial transportation. With nearly 1,150 granted and
pending patents, the Company’s differentiated technologies enable
lighter, more fuel-efficient aircraft and commercial trucks to
operate with a lower carbon footprint. For more information, visit
www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding
Company developments and financial performance through its website
at www.howmet.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231201735123/en/
Investor Contact Paul T. Luther (412) 553-1950
Paul.Luther@howmet.com
Media Contact Rob Morrison (412) 553-2666
Rob.Morrison@howmet.com
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