HAYN - Earnings call transcript Q4 2018 | Haynes International Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Haynes International Inc. Fourth Quarter Fiscal 2018 Earnings Conference Call. At this time all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to and conference CAO. like Van to now Controller Bibber, would turn over the David I Please begin.

David Van Bibber

and International; very today. and are President With you Chief me of Thank much today Mike for Financial Officer. Shor, Vice Dan Maudlin, and joining us CEO President Haynes Chairman,

of Before started, of and are forward-looking that forward-looking plan statements. like the meaning I and intended to cautionary are Litigation a brief XXXX statements we regarding call to forward-looking of similar and XXXX. Act and contains Private XXE get the Reform Securities Act note identify expressions Exchange anticipate, statements. The would the read This Section conference within believe, words Securities of

forward-looking number be in as statements information, XXXX. to of that otherwise. reasonable, turn are are or believe Securities the September that, subject ended filings with no year fiscal of risks result call statements, Exchange no the XX, could or to or for XX-K statements particular, of expectations are we will achieved. Company Company's forward-looking whether the plans, expectations our any regarding to such Although and over such publicly Form revise obligation future undertakes update a uncertainties, me events a new and The the With Commission, let plans, intentions assurance provide Mike. discussed in Many intentions and and such in we detail risks or by these suggested

Mike Shor

us the Thank you, everyone Dave. call. for morning thanks on Good and joining

on are. our related group into interim this had after of market air gross we changed is me? I five I see and issues technically significantly. basis performance to an in making including The this we've control, of honestly I improve months Xst. as and potential What I our role, of and that our to fill our of capacities areas and in CEO my I had constrained role business our this issues looking September think and under When recent move that where perspectives important Now, forward we've provide what change looking equipment, understanding had permanently President are some almost past to to agreed our on it's at then focusing looking enthused thoughts our this and in I been late and above and potential unique too in doing should backward Briefly today's team a six company build. which people, that in I've intention performance, and ability with at some permanent. more for the I impact performance seven intrigued for these has are on our continuing recent or there Company's growth. a our our with margin quarters improvement, long. factors our lost are believe money the detail caused review five have for then been with reported we became comparative has our performance. lead team alloys. with company that that five what I before The of slightly earnings. largest factors believe to goal the can that I financial factors and market in May, have increasing addressing the and seeing consecutive lagged past our a the answer breakeven no team encountered, the

last highest business drop lowest power in significant industrial generation pounds below the year. was for turbines the our and quarter rapid with this nearly XXX,XXX the quarter First, quarter gas

of Next, the cost fix low on impact absorption in our plant. volumes

or steady these manner, projects on lower last that and solely consistently volumes repeatable. five, into CapEx to we investments application based continue number five lumpy that spent come Fourth, Third, over improve. work fact us the the lower the $XXX than years. to tend typically projects in finally expected return to from specialty to-date the And of in the not that are on cost unique million

that our As everything the to we it you steady I and base but have forward. improve have optimism said our so cost performance determine since this with We we success forward explain low improvement. I base, arrived from from. to that understand level we thought we processes, I margin build it’s that issues at will that important do. believe gross I Haynes, move started in was call, of on our a will we’ve to the note opportunity made I important Obviously, past believe look as we

margin, margin starting when six that like past followed we X.X% XX.X%, the for, I’d net low report gross XX%. which X.X%, to it’s point gross This the of not month the a of XX.X%. is strive X.X%, quarters September Over noteworthy. for gross our was we clearly down point trend given today’s sequential XX.X% starting but level bottom is very quarters our out the by margins were and

equipment time The this million produced aerospace it’s to a incremental expansion put through initially finished product million XXX-foot on $XX to planned installed cold for is point finally as the we mentioned focused pounds. in piece of expected up When and very on produced a pounds and expansion, the place significant from market. capacity to requires base XX long is value business the cold downtime upgrade. this bright flat a complete, piece rebuild call, our to generate a very annealed our that, of lives finished Now, finished process is high that we is which Because on last the which outage now final extensive of of down. equipment have outage flat majority a planned the a our puzzle note, have last cold in of furnace, XXXX, and the difficult which was

have XX we demand we flats, current never outstrips for will that we’ve capacity market in don’t, consistent cold In capacity. pound we years. be consistently about the if that state talked our However, over million finished our constraint

happy. We have our laid not orders make that obviously customers do

under have liable We equipment.

the this therefore buys quarter Therefore, equipment spot the first starting the of in ability lead for the issue now, an that taking come mean weeks, for participate address not we’ve expected we significant occurred down advantage made in and with in short-term no area profitable fiscal this XX to out in XX capacity. time short decision of product mid the in down time to very earnings form. this $XX take this pain the have This to October, million are We long-term gain. increase and our and

the we're margin Wrapping improvement of follows. the flat and about finished future up the section, reduced to I of previously outage, Given due this to am expecting as fiscal volume XX trend this QX gross to My mentioned. reasons are below cold come XX back continue for week breakeven Haynes. be optimistic then

cold opportunity which increase This high-value production in taking profitability. previously want and represents to finished First, complete, significant differentiated noted. the outage. for week capability reason We this to upgrade XX Once a begin stop is our ferns it is is this products. improved to as capacity significantly XX to expand perform, to expected the drive capacity about talking current

capacity take of X by years Second our but plate yet few this advantage We to this pounds of reason or in million higher expanded products. expansion. ago, investment for a XX% plate have capacity optimism, volume

importantly easier effort plate have base the it's quickly We've that involved that to and utilization of product meaningfully increase steady most us asset are create volumes. true of a returns allows plate initiated product products it's the produce end favorable at and lower While an to an absorption. business our profitability to

possible. of We but feel incremental volume stages are in is effort, this the early

quarter simple, get is currently turbines. the here pounds our a about volume that least markets goal Our at level of industrial overall long case with doing is as if not even one of X today well million talk gas is

for tubing. optimism, Third reason

and meaningful for special facility. to the XX next More a see in is increase are forward. improvement capacity our are tubing move sites outlook beginning looks positive projects months. Fourth, as in the We in we our improving

not be least two record will but that above prior your be will We volume, average. we at we anticipate a

and improve Cost realistic the yield will is of is in and very Dave and manufacturing our our this addition to new We new record pricing. Operations. do on success perspectives of of in track as company cost, is and and of a company. brought the to Strobel there. extensive focusing relentlessly industry opportunity largest experience difference in must including Next, Dave's benefit a Haynes. locations, improved great will make our be people VP our of six, Continuing reduction number on therefore

capturing business to-date. We are our line advantage. past proprietary main raising without alloys. discussed significant in Seven, pricing market the of the increases loss promoting This and aerospace any as is within are competitive bottom

In aerospace, Pratt to alloys We engines. to operational efficient heat, now with the solve a thermal & have their related issues. Whitney and both and to users solve continue XXXX the to creep specified cold strength, Series corrosion, XXXX design Series into all end help customers work expansion proprietary we problems

alloys proprietary GEXX. two and the have also renewed expecting reason eighth on energized safety. We focus a And to finally,

as We do of zero committed in end and ultimate we their at same safety day go the workplace as to to injury our goal. achievable are reported that remains that everyone We is home the a believe our performance work. they improving right to the believe has condition that

to team strengths now safety is Our strengthen -- our steps taking appropriate culture.

that, and and volume inclusive for were expanded to million selling X% million pounds. pounds. revenue. XX.X% for per Moving pound, level our million, were the aerospace year's up last of total drove profitability. last X Average million. markets approximately let the on pounds for revenue. of meet representing Volume move Fourth quarter, the in pounds result million, our million. from revenue in quarter shipped initial quarter the about in market goal the the up was X.X top other this was per gross year's our pleased X.X pound. $XXX.X quarter million With from $XXX.X Volume XX.X% at XX.X% the was up last solid This shift Net over margin XX.X% $XX.X line to quarter from XX% year's last year's of X year's XX.XX pound about last revenue $XX.X were XX.XX stronger was X.X fourth of net revenue market we to up million quarter. key in from prices million me revenue our our Sales up

the Average aerospace full XX.XX saw year's for in the pound level year report the sequentially fiscal volume per last from was to I'm volume by happy up market in to quarter fourth up this QX increase selling million the QX from at shipped pounds our that the We into at a million X.X% in quarter. record aerospace year, XX.XX X.X pound. backlog per prior pounds. price X.X% during was a X.X record XXXX Looking beating in to fiscal

our capacity enhanced strength see to combined our sales just Also and tubular aerospace. capital operations driven this market aerospace was from to with finishing Louisiana of engine manufacturing primarily our facility, plan continue our I and all possibilities the distribution I expanded Arcadia, generation We in increase volumes Indiana pleased in recently tubing. at stages beginning their investments. value-add with in new additional LaPorte, upside by volume provide in was of especially

quarterly In last optimistic was regarding in Net demand call for volume decrease Average up X.XX year's discussed addition, volumes years volume $XX.X pounds from already in at up we the year's X.X% XX.X% price XX.XX was million. chemical this expect up The backlog the of we’ve XXX,XXX complete the XX.X% this detail. CPI to highest pounds. our accounted end X.X% year's processing XX.XX in CPI pound from in the as aerospace. million is for quarter market. in upgrade selling sequentially. pound remain finish improve was much last market revenue from quarter XX.X% processing per $XX.X after chemical is quarter million, last in the X.X of revenue. We the per Volume

to We opportunity project specialty specialty side our shipments levels base processing from business see this utilize improved, base and continue compared level. better The last year. proprietary of to but of improve have chemical we to that application materials more has volumes

in is effort early Dan earlier, increase October processing our we've which initiated the improve. in order in much in improving As chemical strategies stages, backlog meaningfully volumes, the of to CPI to continued market. I relate quantify still market has fleet successful minute. a This will in to demand its our was but intending entry Overall mentioned which

decreased pound. last XX.XX from shifted year’s million. gas XX.X% in per the million, XX.X% $XX.X for totalled market, pound up the industrial to pounds sales XXX,XXX X.X% in our last selling up Moving quarter Backlog quarter year’s gas roughly sales pounds. market the price of year’s last million X.XX turbine this from to XX.XX Volume was XX.X% the from per $XX.X quarter. was industrial during XX.X% IGT in Average turbines accounted and pound the per into quarter. down

short highlight demand large quarter. sequentially in clearly in good calls, weakness market long-term this at medium this continued oil see equipment both in They’re part was to for are smaller As starting own We be shipping applications. for next however in frame buying was turbines run. believe will hospital few campus investing and the generation. the the to their their discussed It our demand in from this previous applications and also to We and oil demand power large onshore reported as use will market quarters continue or applications, turbine solid a OEM our frame large the price customers pickup the patience for likely least levels last still offshore the see on see rising. Smaller in to such used markets. frame mentions volumes weak regarding in have required companies oil university in which factory, and

to markets other million for me other in demand details processing. the and of Other our during $X.X turn $X.X million levels our revenue decline increased market specialty Dan for to other our quarter market, higher the higher partially hitting a million. it roughly but by With sulfurization more related on gas with flu Finally, from let in that, of total in financials. and over decrease last $XX.X to offset was application up projects revenue. year’s revenue area XX.X% $XX.X This XX.X% million markets this accounted

Dan Maudlin

Thank you, Mike.

especially Pricing quarter This a fourth including million and net represents quarter of top sales quarter continued of strength our line quarterly shipment has open margin our that’s basis Gross a X.X% compared versus from in increase improvement sequential which major the a been we this absorption. improving higher represents quarter initiative performance headwind capacity the financial cost to in was the focus third poor year-over-year volumes fiscal $XXX times. progress a achieved of This to XX.X%. of pound with also alleviate focus margin We expanding the improving XX% focus of areas can see both of effectiveness. Increasing results. by gross where dollars equating a key we initiative has in $X.X third million the XXXX. quarter million points, areas initiatives volume strength capacity to producing as been improvement is margin fix of asset goal in our improving longer driven X beginning XXX lead especially quarter pricing fourth constraints and

and prior further As this right I calls, anticipate we to the upgrade is have first we direction moving mentioned quarter. and in outage the line as in continuing the annealing pass expand this in move

combined offset in mill like reductions and We pricing, are things pressure expected and fuel some increasing by rolls; inflationary wages, these however, categories. seeing graphite electrodes to be cost, improvements efficiency with are and cost other

of million X.X X.X were This to was in and QX Our QX, a project X.X million QX million. of fourth quarter sequentially last year's is sales significant specialty which X.X from of million. X.X only increase QX QX application million. compares This

we of provided specialty For the of year million XX.X the annealing detail upgrade outage fiscal in and the had compared million. first application planned XXXX, to projects, fiscal full of on XX.X bright Mike line our quarter. XXXX

fiscal of and expecting revenue this and of a the in our December. thus first reduction in impact XXXX to of pounds produced shipped quarter pounds You're be ending

are margins and last are percentage addition, will lower impact be an breakeven. attained we our In expecting to in gross we absorption margin thus this from below quarter have a on fourth gross expecting we than cost fixed

last total further and same after growth strategic year. that SG&A cold sales produced discussed sales finished fiscal balance the normal quarter amount both this technical a related and net quarter of complete, coil This X.X% of two period we However, including due or and took year, of than attempted of XXXX. in SG&A were fourth in to million transition higher quarter. the pounds to acquisition the million products of last for XX market. XX.X the for cost the than costs X.X once gain of is this allowing capacity the lower the to million the in fiscal third sheet place were the primarily which in expect of CEO The planned outage research was events aerospace full-year is

costs including be We and expect fiscal XXXX approximately technical SG&A million. to research million to $XX $XX

This quarter the related to devaluing tax rate included income. sourced new with foreign further income the reform of deferred reform impacted the first the fourth the in deferred our transition quarter to tax significantly, In assets. tax further charges tax tax related assets, primarily to act. primarily reduced adjustments due impact to there the the were Tax quarter, net

year. XXXX, and tax to fiscal SG&A rate in assuming two XX.X had That fourth normalized share. fiscal press quarter environment, and Net is for solid XXXX earnings charge impact $X.XX diluted per impact impact for is $X.XX expected full These market the a fourth reform million was X of QX income and quarter an The quarter for full of the after-tax XX% Beyond year of in per detailed the earnings conditions income $X.XX year. X.X are full our for tax for events our $X for the release. million, million an and or noted XX%. earlier the in be quarter to of Schedule effective the and in charge special share

charges income diluted share. fourth million, However, noted X.X was net per $X.XX excluding quarter unusual the above or

smaller was million favorable annealing lesser expected The demographic his million XX.X%. growth return we and pensioners assets reduce discount The U.S. the initiatives evaluation volatility XX.X beyond PBGC expected. and is taken to XX% by of we by XX.X X/XX/XXXX retiree liability and participants. pension pension As premiums. or and removed the reduction further in future reduce include rate three more to further tables and mortality plan funding and A Mike in This last notable approximately to we to The reduced improved that plan, healthcare liability participants to of a on at profitability increasing, favorable the bright implement a pension pensioners the XX% progressed and plan actions projects; than comments, degree the reduction planned and a manage outage the annuitizing resulted in compared our of few action changes. liability driven is better combined year. outlined than first, bit net balance small the XXX level which total from the

of Second, vested roughly the Company, employees no the per after monthly plan. deduction, generating and payment a accelerated we fiscal tax advantage during funding per higher XXXX. vested or age. in the a retirement the This project not buyout were to are approximately million a year. of take remove on terminated XXX,XXX U.S. XXX from discontinued participants in in of third, that an pension XXXX tax to temporarily sometime X payment resume year, and made million findings participants to we higher And yet longer set liability reduced the monthly pattern But by month the X rate fiscal but accelerated the

As pension million. the a U.S. XXXX in $X fiscal result, was funding

over or Backlog X.X% but backlog. XX.X% million XXX.X decrease increasing was XXX September to at Turning a fiscal XXXX XX.X XX, over the at million, million a significant XXXX. XX quarter, XXXX from increase September of

entry. by October be high a order bright million next outage million the first past fiscal quarter XX.X are fourth of the the line associated of of expect year-end, solid XXXX XXXX delaying upgraded quarter. first for Due the increase the October, significantly a XX, Outlook the of annealing driven XXX.X the loss deliveries with quarter to quarter. quarter holidays customers weakness the and of for Beyond at expected XX backlog and due combined of to be historical the backlog increased with than earnings lower planned for to we net quarter fiscal and the to calendar in revenues with month

the of completion cash higher at quarter XX same expect the period was of we high-performance the cash September XXXX. or in decrease first the the the in these inventory when planned capital revenue X.X alloys decreased XX.X than This However, increasing during this XX.X% conjunction production to be fiscal XX, we also a first be This long production fiscal in of driven XX. impact increase to increase represented XX.X%. and primarily cycles in million million backlog we expect XX.X the issues outage fiscal over increasing earnings with to fiscal typically year. pounds was is Liquidity, increases, XXXX After million consumed. and backlog elevated. inventory is quarter, Due the by for working

is the in spending of bright focus described. a financial conclusion, implementing focus capital $X it at Mike of with fiscal quarter, down revolver million our approximately we are spending had growing pricing and of on has to September increases but for forecast Capital by fiscal accordion completion last quarter to a million. to facility as compared is we believe volume the continue and XX million. upgrades the million credit the million in borrow to from XXX XXXX strength million In During facility $XX did annealing possible balance with encouraging credit fiscal back the execution year. end, at paid untapped performance top revenue. size our drive We was the XX.X XX, line zero The improvement XXXX which initiatives XXXX an feature includes XXX in

these also well focus possible believe on of and as actions with and improving yields. expansion as production reductions efficiency as We cost margin

in and shareholder goal growth Mike, value. the Our over is I discussion with will corresponding meaningful meaningful you. to turn growth to back to now profitability move

Mike Shor

volume, fourth you, revenue, increased increased quarter quarter. Thank year's Dan. margins and last The sequentially above and fourth

The priority. quarter, to beginning while been mentioned initiatives trends on just we As focus launched improvement are continued direction, are is gain traction. these accelerating in have improvement that the pointed last our right

With to the the Sherry, this outage Sherry, open questions. let’s We call positive planned With trend expect that, the that, to to open this quarter. call continue let's after questions.

Operator

you [Operator Instructions]. Thank

Marshall proceed. Edward with question first & is Sidoti Please from Our Company.

Edward Marshall

I the impact furnace as EPS it's us cold give line you best on kind of now? you uptime around finishing that the either far of curious, understand can shaky maybe yet might I’m the kind have from efficiency what to that Maybe perspective? past margin digits quarter. you as cost this or been you can quantify some

Mike Shor

We above pound a -- get in to month. little produced per backwards X looking the have maybe struggling million more been

late said as Our comments. because that in I of got demand is my greater orders than that. We’ve

it’s fairly and significant time, not is So, where go but importantly, we’ve been with for to that’s been market than aerospace something business to significant well, transactional us and most price. there in a more always shortly that behind should go important we’ve Ed that opportunity able after especially this customers, disappointed delivery time after business is be And we doing.

we’re as looking that in able not the somewhere to when you will as at Last mainly point, be impact to line make miss build we will able is and manufacture the look the we to agreement we but that is our ahead, of want with make just offset in extreme I’d gone forward, I protect we we on $XX to at million what range customers, long-term Moving QX, so what to revenue $X what of will business. on that top to inventory quarter. have line the side are in since what million the transactional far that, sure quarter, furnace say

Dan Maudlin

we was we’ve running X.X running in strong, you kind the produced needed take cold is cold the a we up idea it that's down. down And in had it pounds a time smoothly which bit been in reason have in some that can and million give trouble of finished take had million cap to QX QX, the new an little that produce Mike, take to keeping X.X quantify Once and we and the on that the another and more outage. production, in down mentioned to really I just of line the quarter million, it's line line it’s so over put finish. And is, why that month,

Edward Marshall

annually? have roughly right each three pounds about think equivalent to can produce it you right million that it? to is about, lines the assume Is that X And way just

Mike Shor

same. There not is are three lines, exactly the they

Some are bright annealing.

and Some pickling. are annealing continuous

can't yes, correct. on you So, generally do every line, everything but are you quite

Dan Maudlin

reducing by about we In third. rough numbers, a are down by this taking

correct. are you So,

Edward Marshall

you if I anticipated that some I previously, spent know think about, the of of and in And the it maybe So inning it thresholds that that wasn’t would. changes going there are of wasn't maybe kind over there? are that -- Acadia. production time that? improved. It to on productivity switching you've that some you business. maybe sounds we out And it reaching Can was talk some I what of about gears increased

Mike Shor

I'll initial an put in and We had goal about we tubing. specifically talk this aerospace Yes, and place.

down talked have We question and about I we in time as a constraints And to spent there. your inning. variety I we are my then other the would in just about comments, when there reasons start. of I a were hit the and say them past with some we how actually for slow had answer six mentioned we hour also business down fifth meeting Dan

making aerospace honestly, gotten out significant months. eliminated We that they performance I'm They we of progress. expansion have are have last what rough the understand have about increase And go. tubing, that next. half numbers do have expected another half constraints. couple of proud They of They we of of to the and over to the

Edward Marshall

curious. maybe versus Just you fiscal gave me you 'XX? but the about for 'XX it fiscal I'm could just pension you great maybe Could on us a about detail talk the talk goes assuming year-over-year expense on What pension. there I'm -- final lower, the question basis? Dan

Dan Maudlin

valuation as favorable. mentioned Yes, the I was

was that to great So see.

XXXX expense was million together 'XX, a 'XX it in of to million, back expense that’s history pension and you that you million just few XX.X in it remember our XX in an about grew and give years when 'XX million kind in If was peaked. in ago, XX so we had increase to a brief to and quite postretirement grew pension XX.X

million. that increase year a of XX.X about it's in this bit in a and so to those backs X 'XX was significant up 'XX was 'XX in going So it million combination the two. It be

step going adopting So this changed that FY will a and rules these keep down 'XX. nice will in the accounting we have rules I accounting mention mind and in as be well, forward

be face pension in cost would've expense goods on in in some that a pulling out line and will item We special kind of interest expense the been P&L sold category. of be of out of be that pulled the the will

on will you of moving of the a there. bit this different view around see impact on for No just accounting face change, P&L. income So, but the it net

just down expect wanted can you to that. be expense quarter next nicely. will going the that So in the overall mention But

Operator

[Operator next Instructions] Gibbs question Markets. proceed Phil KeyBanc with Our Capital with question. is from your Please

Phil Gibbs

to of capacity terms you you've that that another will aerospace exactly? have about finished access capacity few applications do of cold where that see get And that, indeed understanding I demand going the is of or be will or higher a know think Where to types such months here. are level for in but predominantly, the that just right In talked you why going? capacity this? now, trying

Mike Shor

and and seen for we're much in able demand of the times impact shortly capacity with or markets not of just combustors, Phil to applications And and performance. have is the the our our the want and been lead you these get We’ve used across after relatively on as out able be that's high to transactional obviously to shield. And such truly business, pretty across and I the said line real It pretty this losing goes the business. board, business be casings, a that's board dumping with sheet with aerospace aerospace -- times to product able that in before, to demand is the and side in what we've temp on all go being are these as much and increase transition flat. our

Dan Maudlin

make finishing, And center coil This is. will one and I it’s gage further point the cold is sheet so products.

So, and re-rollers and business hear you the gage strong a side mentioned. demand having we’re center applications, some talking other This about us the some capacity just that stuff in we’re the Mike that quite on especially and is seeing of plate place. of selling, with

Phil Gibbs

be to you incremental Mike, on going pick largely contract business. So, be you not up, it's is this transaction going side to think a business

Mike Shor

combination, the a attempt get capture and the both. expand this out demand But million pounds I do for is to we what business it we -- the to for produced it’s as been XX to industry of than million from times for need whatever while price the we pounds, where XX these think is to transactional both. a Phil, be in point like is is in because materials plus I've there. would produced need greater plus

agreements on to talking side is transaction about both what We’re we long-term and believe side customers the coming.

Phil Gibbs

year-over-year kind sold least at material back million $XX cost a then of to my and couple to and close data goods some at the given envelope non-raw think was your did questions XX-K, you've Okay raw on the up I XX. for me. but in costs provided math material just more your I on

to point to goods of in a and the greatest it pressure? mix? maybe combination there. Just trying cost is inflation to help where you some Just see Or sold

Mike Shor

our alloys moves my What inflation mix. combination if of Yes, I mix. But you’re say it’s raw a and is mentioned than outside margin anything materials, comments. more in I looking would certainly

fuel higher as being melting. seeing and other electrodes things fuel graphite wages. pressure used obviously like were And our inflationary cost We’re being things in certainly with some higher. well Those rolls as mill seeing charges, are

I cost of other you goods or the was think cost pound, pound to XX.X% quarter per which increased quarter, I average for margin direction. before, up the at mentioning. pound, to a the selling higher even gross quarter XX% costs, sold of are $XX.XX the in the and can well goods fourth per reason if the And we're over gross in expansion The you margin with that's in those moving to average margins reductions just price quarter, cost is price margin offset and so we that $X.XX I only the looking those all so selling is the fourth pound that from is we increases gross about which think from as $X.XX so, look sold majority right $X.XX timeframe at as that up or fourth per talk our our share price. that pound, improving mentioned, So a per but the doing up

Phil Gibbs

is working net for question then management. capital And me just on last

you’re Mike a grow expect number look about versus growth some we months moving I do levels goes numbers think that Or history should you net historical high to ratio, vein in that How levels. as capital to moving expect bit your sales moving know forward? have forward? is probably on? the forward, just relative revenue capital working the on And an at we improvements year to managing going and that the think bucket working still should still inventory I any high. but to absolute we in pretty little

Mike Shor

start me real quick, with Phil. that Let

being there. us top higher, As in you going in through that production start this right the notes, backlog all mentioned manage outage line a inventory driving outage, long to inventory my more need this with higher outage we pretty have. the some so did as lot we sales build also inventory Drever through and But could I that the with up that’s got upgrade to places we help we being in

So, that’s I to improvements of but make can a portion certainly well, have some we we believe is it it.

Dan Maudlin

me bar on that’s at previously are other the our in it’s how and the on big our alternatives with side five let six one area, small for And too bar in, in capital we’re and of carry delivery cold we have finished of in here inventory flat or reason lead long to flat is address to our a discussion influencers the about all of my to and lead times what and Phil, topic side. even for significant the talked on-time looking cold lot and is months the the and much time. jump been finished particular area looking

those on at lead get don't as a we as want So, middle. and delivery want be do you risk down I is build can as on-time we first pull focused time delivery, and we’ll up But improved those do to get that. we in time everyone in and then two the on I able to of customers combination to put

Operator

the We closing question-and-answer I have for Shor our conference Mike would of to to session. reached end back like over remarks. the turn

Mike Shor

And Thanks support We day. you a your and to forward you in look thank next quarter. today. good interest everybody. updating for for time again you. Thank Have company. your our Thanks

Operator

This concludes today’s conference.

this time. And You may for you participation. disconnect at thank your your lines

Haynes International (HAYN) 16 Nov 182018 Q4 Earnings call transcript