Metal alloys maker Haynes International Inc. (HAYN) 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 agents.
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 Sell).
Other companies in the metal fabrication industry having favorable Zacks Rank are NSK Ltd. (NPSKY), Kaiser Aluminum Corporation (KALU) and Northwest Pipe Co. (NWPX). While NSK holds a Zacks Rank #1 (Strong Buy), Kaiser Aluminum and Northwest Pipe retain a Zacks Rank #2 (Buy).