NEW YORK Haynes International Inc. expects fiscal fourth-quarter net income to mirror its solid third-quarter results, the company said Friday.
Haynes recorded net income of $13.7 million for the three months ended June 30, up 63.5 percent from $8.4 million in the same period last year, despite revenue that eased 1.1 percent to $141.6 million from $143.1 million.
"Net income may exceed this level (in the fiscal fourth quarter) if improvement occurs in transactional business," vice president of finance, treasurer and chief financial officer Marcel Martin said during the companys quarterly earnings call.
The improved quarterly performance came even as shipping volumes fell 7.4 percent year on year to 5.7 million pounds, while average selling prices rose 6.8 percent to $24.79 per pound in the same comparison due to a better product mix.
Even as such end markets as aerospace remain highly favorable, Kokomo, Ind.-based Haynes saw weakness in project-based segments like chemical processing during the quarter, leading to the lower shipments.
"Our customers see project work out in the future, but some of these projects have been delayed by the economic situation," president and chief executive officer Mark Comerford said during the call. "When they get the orders, well get the orders."
Haynes expects to add 3 million to 4 million pounds of sheet, coil and plate capacity, Comerford said, which stems from a $24-million expansion announced in June at the companys flat-rolled facility in Kokomo (amm.com, June 26). The high-performance alloys manufacturer is also mulling further expansions.
"On the premium side of the business, were definitely running up against some hurdles. Were evaluating a number of options there," he said during the call.
The company has also said it is investing $37 million in its Arcadia, La., specialty titanium and high-performance nickel alloy tubular facility. This will add two Pilger mills and an annealing furnace, according to Martin.
"Arcadia continues to operate today at near to full capacity," Comerford added.