Haynes International is an ally of companies that use alloys. Haynes develops and manufactures nickel- and cobalt-based alloys. The company specializes in high-temperature alloys (HTAs) able to withstand extreme temperatures and corrosion-resistant alloys (CRAs) that stand up to corrosive substances and processes. HTAs are used in jet engines, gas turbines used for power generation, and waste incinerators, while CRAs have applications in chemical processing, power plant emissions control, and hazardous waste treatment. HTAs account for about three-quarters of the company's sales. The aerospace industry is the biggest market for Haynes, accounting for more than a third of its business. Haynes' alloys are produced in a variety of formats, including sheet, coil, and plate (which together account for about two-thirds of sales); it also produces tubulars, both seamless and welded, bar, billet, and wire. The company also provides such support services as technical assistance and product analysis.
The company's revenues dropped 13% in 2010, with both its average selling prices and sales volumes driven down by increased competition and weakness in customer demand. Sales in its leading segment, Aerospace, were off almost 14%; its Chemical Processing unit was down 20%, while Land-based Gas Turbines fell 24%. Sales were down in all of its geographic regions in 2010, with Europe off the most, (down 40%) followed by China (off 12%). Despite a slump in sales, net income rose to a modest profit from a 2009 loss, due to a rise in operating income and a large 2009 goodwill impairment charge.
Haynes strategy is to grow through developing new products and applications for existing alloys; expanding into new, emerging markets; expand through strategic acquisitions and alliances; and to invest in its manufacturing facilities and equipment. The company plans to invest in a restructuring of its service center operations in 2011 and 2012, and to spend some $85 million on new equipment and facilities through 2014.
The company is focusing on developing its international business, which now accounts for nearly 35% of sales. Haynes opened service centers in China and India in 2005. In addition to Asia, the company is looking toward Central Europe as an opportunity for growth. – less