Haynes Int'l Slips To Q4 Loss

11/23/2009 5:20 PM ET

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(RTTNews) - Monday, alloy maker Haynes International, Inc. (HAYN: News ) said it slipped to a loss in the fourth quarter from a profit in the year-ago on a steep decline in revenue.

Haynes International reported a fourth quarter net loss of $3.0 million, compared to a net income of $16.3 million in the year-ago period. On a per share basis, net loss was $0.25, compared to a profit of $1.35 in the prior-year period.

Analysts polled by Thomson Reuters expected a fourth-quarter net loss of $0.12 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter fell sharply to $85.6 million from $160.8 million in the year-earlier quarter due to rapid increases in the cost of nickel, energy and other raw materials. Analysts expected fourth-quarter revenue of $93.08 million.

For the full-year, Haynes International posted a net loss of $52.3 million or $4.36 per share, compared to net income of $62.8 million or $5.22 per share in the year-ago period. Excluding non-cash goodwill impairment charge of $43.73 million, net loss was $9.5 million or $0.78 per share for the year. Analysts expected a net loss of $0.64 for the year.

Net revenues decreased 31.1% to $438.6 million from $637.0 million in the year-earlier quarter. Analysts expected full-year revenue of $446.26 million.

The company expects revenue for the first two quarter of 2010 to be will be below the fourth-quarter 2009 revenue of $85.6 million and that its performance will range from break-even to small losses in each quarter. It is expected that the weakest results will occur in the first quarter of fiscal 2010 due to fewer ship days and extended customer shutdowns. Haynes International expects 2010 results to be negatively impacted by reduced absorption of fixed manufacturing cost, which inflates cost of goods sold per pound, and the competitive environment. Analysts expect 2010 net income of $0.23 on revenue of $407.42 million.

Haynes International announced a quarterly cash dividend of $0.20 per common share, payable December 15, 2009 to stockholders on as on December 3, 2009.

HAYN closed Monday's regular trading session at $27.58, up $0.67 or 2.49%, on the Nasdaq. In after-market trading HAYN shares fell 6.82% or $1.88 to $25.70.