Boston, MA 05/13/2014 (wallstreetpr) – Haynes International, Inc. (NASDAQ:HAYN) recently reported 2Q2014 financial results that showed various improvements from the previous and a year earlier quarters. The results also showed challenges in pricing as competition increased.
However, the management is confident that the company should be able to post positive results in the current quarter and fiscal 2014. Towards that end, the company continues to make capital investments so as to attract more revenue while adjusting costs and expenses to support the bottom-line.
Capital investment
Haynes International, Inc. (NASDAQ:HAYN) is a manufacturer and marketer of high-performance alloys, the company projects the demand for its products to increase in the future and, therefore, it is working to improve capacity and efficiency through capital projects. The company has already spent $24.3 million in the first two quarters of fiscal 2014. However, it has earmarked $57 million for spending on capital projects this year.
The company expects its capital spending to enhance product quality, improve capital management, trim costs and increase capacity as the management anticipates strong demand in the long-run.
The $57 million planned for capital projects this year is part of the $124.5 million that Haynes International, Inc. (NASDAQ:HAYN) allocated for capital investment over the three-year duration from 2012 through 2014. So far, the management is content that the money has been spent well in the required projects. However, the company will continue to inject more funds for capital investments.
In those capital spending, Haynes International, Inc. (NASDAQ:HAYN) is clearly keen on improving revenue and profit while reducing costs to create bigger value for the shareholders.
2Q2014 turns in a loss
Haynes International, Inc. (NASDAQ:HAYN) generated net revenue of $115.4 million in 2Q and a net loss of $1.2 million or 10 cents per diluted share. That compared with revenue of $129.2 million and a net income of $6.4 million or 52 cents per share diluted share.
The loss in the latest quarter was blamed on pricing pressure. However, the management promised that 3Q and the balance of 2014 will be positive.
Haynes International, Inc. (NASDAQ:HAYN) declared 22 cents quarterly dividend on the common stock shares.
