Metal alloys maker
Haynes International Inc.
) revealed that the United Steelworkers Local 2958 (USW)
membership has ratified a 5-year collective bargaining agreement
covering roughly 505 employees at its Kokomo plant and Lebanon
service center in Indiana. The new collective bargaining deal
succeeded an existing agreement that expired on Jun 30.
Haynes stated that this new bargaining agreement is a
successful negotiation process with great efforts put in by the
company and the local union. The agreement is beneficial for the
Indiana plant's employees, customers and shareholders and will
eventually work toward building a strong future for the company.
Founded in 1912, Haynes makes corrosion-resistant alloys for
aerospace, chemical processing, gas turbine and other industries.
It specializes in manufacturing nickel and cobalt-based alloys in
sheet, coil and plate forms. The company has a diversified
customer base and markets its products through its direct sales
organization as well as independent distributors and sales
Haynes reported disappointing second-quarter fiscal 2013
(ended Mar 31) results on May 2. Earnings plummeted 58% year over
year to 52 cents per share, missing the Zacks Consensus Estimate
of 67 cents. It was Haynes' fourth consecutive miss.
Net revenues declined 19% to $129.2 million, well below the
Zacks Consensus Estimate of $141 million. Gross profit also
plunged 41.8% year over year to $20.1 million in the second
quarter. Operating income fell 57% to $9.8 million with operating
margin declining from 14.5% to 7.6%.
Going forward, Haynes expects lower net income for the third
quarter of fiscal 2013 compared sequentially as a result of
weaker pricing. Moreover, with Haynes' market visibility
remaining poor along with economic uncertainty; it does not
expect a considerable recovery in the third quarter.
Haynes currently holds a Zacks Rank #5 (Strong
Other companies in the metal fabrication industry having
favorable Zacks Rank are
Kaiser Aluminum Corporation
Northwest Pipe Co.
). While NSK holds a Zacks Rank #1 (Strong Buy), Kaiser Aluminum
and Northwest Pipe retain a Zacks Rank #2 (Buy).
HAYNES INTL INC (HAYN): Free Stock Analysis
KAISER ALUMINUM (KALU): Free Stock Analysis
NSK LTD -UN ADR (NPSKY): Get Free Report
NORTHWEST PIPE (NWPX): Free Stock Analysis
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