Kokomo-based Haynes International Inc. (Nasdaq GM: HAYN) is reporting a fiscal third quarter net loss of $8.1 million, compared to net income of $3.8 million during the same period last year. Chief Executive Officer Michael Shor cites low production volumes, as well as cost reductions and higher reserves for inventory as the primary reasons for the results.
The company is also reporting net revenues of $80.6 million, compared to net revenues of $126 million during the same quarter in 2019.
“The economic impact of the COVID-19 pandemic resulted in a 27% sequential drop in our pounds sold in the third quarter. Each of our markets were impacted, with aerospace being the most pronounced due to the steep drop in both airframe and engine builds. Our team took immediate action with cost reduction strategies which included compensation reductions of executives & directors, reductions in SG&A expenses, temporary furloughs and permanent reductions in force,” said Shor.
Shor says the company is well positioned to weather what he is calling a potentially prolonged downturn because of efforts to reduce the company’s “breakeven point,” as well as continued inventory reductions and a solid liquidity position.
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