Haynes International Profit Drops

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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowKokomo-based Haynes International Inc. (Nasdaq: HAYN) is reporting fiscal year 2016 net income of $5 million, down from $30.5 million last year. The high-performance alloy manufacturer says, despite the full-year drop, the company saw stable or improved fourth quarter revenue in several markets, including aerospace and chemical processing.
The company is also reporting fiscal fourth quarter net income of $3.2 million, down from $5.8 million during the same period the previous year. Chief Executive Officer Mark Comerford says the company’s transactional business was weaker during the fourth quarter.
"Business conditions became more challenging in the fourth quarter as our order entry and backlog levels declined over the quarter," said Comerford. "As a result, we are reducing production rates, inventory levels and costs in response to the slow base-business conditions as we see customers in cash conservation mode managing their inventories as the end of the calendar year approaches."
Haynes expects revenue and earnings in the first quarter of fiscal 2017 to be lower than fourth quarter of fiscal 2016. However, the company says the first quarter is "always impacted by lower production and shipping days due to holidays and planned maintenance shutdowns."