Haynes International Sees Yearly Profit Decrease
(photo courtesy of Haynes International Inc.)
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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 GM: HAYN) is reporting fiscal full-year net loss of $6.5 million, compared to net income of $9.7 million in 2019. Chief Executive Officer Michael Shor says despite the loss, the company’s focus on high value products and cost reduction continues to have a positive impact.
The company, which manufactures alloys for use in the aerospace, industrial gas turbine and chemical processing industries, is also reporting full-year net revenues of $380.5 million, a 22.4% decrease compared to last year. The loss is attributed to “a significant slowdown in demand caused by the COVID-19 pandemic in addition to the impact caused by the grounding of the Boeing 737 MAX.”
“Our pricing improved year on year, and our ongoing cost reduction focus led to our gross margin improving sequentially in spite of lower revenue,” said Shor. “Although we recorded a net loss for the fourth quarter of fiscal 2020 and for the fiscal year, we continue to have confidence in our liquidity and our ability to continue to generate cash, as evidenced by our payoff during the quarter of the precautionary $30 million draw on our revolver. In addition, post quarter-end, we established a new three-year $100 million credit facility, replacing the previous facility scheduled to expire July 2021.”
The company is also reporting fourth quarter net loss of $5.7 million, down from $6 million during the same period last year. Shor says although the company say low COVID-19 impacted volumes, it generated $11.8 million in cash during the fourth quarter.
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