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In addition, the manufacturer of high-performance alloys said it would temporally reduce salaried employees' salaries between 5 and 15 percent and eliminate the cash-bonus component for the fiscal 2009 management incentive plan.
The company held a conference call Friday to discuss earning results for the third-quarter fiscal period that ended June 30.
"During the third quarter, we continued our efforts to realign our cost structure and manage our working capital as we battle through the downturn," said Mark Comeford, president and CEO, during the call. "These efforts began in the first quarter 2009 and have included trimming melt schedules and production hours on an ongoing basis, and reducing the work force in January 2009.
"In recent weeks, we saw order entry pricing and volume appear to stabilize at very low levels. As a result, we took further actions this week to reduce the cost structure of our business in order to reflect these new operating levels.
"At the same time, we increased our cash position substantially in the quarter, and we were able to continue investing in our equipment and market development. We are focused on restructuring the business to prepare for the eventual upturn."
During the third quarter, Comeford highlighted the company's net revenues were $98.3 million; a decrease of $68 million, or 40.9 percent, from $166.3 million in the same fiscal period last year.
According to Wall Street analysts, revenues were expected to be close to $105.27 million during the period.
Furthermore, the cost of sales decreased to $106.5 million in the quarter, compared to $126.2 million in the same period in 2008.
Although officials offered no actual number of employees to be terminate, Jean Neel, vice president of corporate affairs, said a "greater number of employees will come from our [Kokomo] one-single unit.
"This has been going on the last couple of weeks. We are a solid company with good employees and management. We are doing what we need to do to move forward to keep the company strong."
The latest employee reduction follows Haynes' January 2009 work force reduction when it reduced its staff by 12 percent and froze all employee salaries.
The current reduction is expected to save the company $4.1 million.
--K.O. Jackson is the Tribune's business writer. He can be reached at (765) 854-6739 or via e-mail kirven.jackson@kokomotribune.com
To see more of the Kokomo Tribune or to subscribe to the newspaper, go to http://www.kokomotribune.com/. Copyright (c) 2009, Kokomo Tribune, Ind. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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