Haynes International, Inc. (NASDAQ:HAYN) Q4 2017 Earnings Conference Call Transcript
Nov 17, 2017 • 09:00 am ET
Greetings, and welcome to the Haynes International Fourth Quarter and Fiscal Year 2017 Earnings Conference Call. At this time all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the call over to David Van Bibber, Controller and Chief Accounting Officer. Please go ahead.
David Van Bibber
Thank you very much for joining us today. With me today are Mark Comerford, President and CEO of Haynes International; and Dan Maudlin, Vice President and Chief Financial Officer.
(Forward-Looking Cautionary Statements)
With that, let me turn the call over to Mark.
Thank you, Dave. Good morning, everyone, and thanks for joining us today. Hopefully, you've all seen the press release and had a chance to review it. We'll follow our standard agenda in today's call. I'll open with comments about the business and our end markets, and then Dan will give you greater detail on the financial results.
Fiscal 2017 was a difficult year at Haynes. We finished the year with net revenue of $395.2 million, down about 2.7% from last year's $406.4 million. Our net loss in fiscal '17 was $10.2 million as compared to net income of $5 million last year. Volume shipped in FY '17 was up just under 1% to 18.1 million pounds against last year's 18 million pounds. And average selling price in FY '17, inclusive of our other revenue, was $21.81 per pound, down about 3.6% from FY '16's $22.62 per pound.
I had a lot of good meetings with customers over the past two months, met with about 60 customers. And I was just in Europe the last week for meetings. Most of the feedback was very positive. The notable exception was in meetings regarding the OEM side of the IGT industry. Overall, the feedback in aerospace is very positive. That market has held up well and I think it's fair to say that our customers are expecting it to strengthen as we progress through fiscal 2018.
Our tolling business is also doing well and likewise expected to continue to strengthen as we move into next year. Our smaller markets like the energy related applications also did well in fiscal '17, and they're helping us on the projects side of the business. On the chemicals side, we mentioned in the press release a pretty good quarter for booking some special project work. We're seeing better project-related order entry coming off of very low levels.
The base business -- and by the way, by base, I'm referring to the higher volume, the off-the-shelf transactional activity, that base chemical business is still slow. Although, as we've mentioned, we do see some larger volume lower-priced project work being quoted in the marketplace for pipeline applications, which we're hopeful will be led(ph). I think this will be good for our whole industry if these applications start to flow through again.
Finally, in industrial gas turbine, much like the chemical industry,