Haynes International Provides Cybersecurity Update and Estimated Third Quarter Financial Impact
19 Julho 2023 - 1:51PM
Haynes International, Inc. (NASDAQ GM: HAYN) (the “Company”), a
leading developer, manufacturer and marketer of technologically
advanced high-performance alloys, provided an update today
regarding the recent cybersecurity incident including the estimated
quarterly financial impact.
As previously disclosed, the Company began
experiencing a network outage indicative of a cybersecurity
incident on June 10, 2023. Upon detection of the incident, the
Company engaged third-party specialists to assist in investigating
the source of the outage, determine its potential impact on the
Company’s systems, and securely restore full system functionality.
On June 21, 2023, less than 2 weeks after the incident began, the
Company announced that all manufacturing operations were running
and that the Company had substantially restored administrative,
sales, financial and customer service functions. Nevertheless,
during those 11 days many aspects of the Company’s production were
substantially disrupted.
Based on lost production time, the Company
estimates that net revenues for the quarter was impacted by roughly
$18 - $20 million resulting in estimated net sales for the third
quarter at $142-$145 million. The lower production level also
impacted efficiency and absorption of fixed costs which compressed
the gross margin percentage for the quarter and impacted earnings.
Also impacting earnings are the costs related to the investigation
and restoration efforts. In total, the Company currently estimates
the full impact of this event to be approximately $0.40 - $0.45 on
diluted earnings per share. In addition, the estimated
headwind from raw material fluctuations, primarily Cobalt, lowered
diluted earnings per share an additional $0.09 resulting in an
estimated diluted earnings per share of $0.65 - $0.70 for the third
quarter of fiscal year 2023.
“I am pleased with the team’s quick and robust
response to the cyber-security incident. Our Enterprise Risk
Management planning efforts related to cyber-security preparedness
were activated and proved very effective,” said Mike Shor,
President and Chief Executive Officer. “We have regained good
momentum and expect to make up the third quarter cyber-related
shortfall over the next few quarters. Our team is once again
focused on continued performance improvement.”
About Haynes
InternationalHaynes International, Inc. is a leading
developer, manufacturer and marketer of technologically advanced,
high performance alloys, primarily for use in the aerospace,
industrial gas turbine and chemical processing industries.
Cautionary Note Regarding
Forward-Looking StatementsThis press release contains
statements that constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, each as amended. All statements
other than statements of historical fact, including statements
regarding market and industry trends and prospects and future
results of operations or financial position, made in this press
release are forward-looking. In many cases, you can identify
forward-looking statements by terminology, such as “may”, “should”,
“expects”, “intends”, “plans”, “anticipates”, “believes”,
“estimates”, “predicts”, “potential” or “continue” or the negative
of such terms and other comparable terminology. The forward-looking
information may include, among other information, statements
concerning the Company’s guidance and outlook for all or part of
fiscal 2023 and beyond, overall volume and pricing trends, cost
reduction strategies and their anticipated impact on our results,
gross margin and gross margin trends, capital expenditures, demand
for our products and operations, dividends and the financial impact
of the recent cybersecurity incident. There may also be
other statements of expectations, beliefs, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties. Actual results may differ materially from those in
the forward-looking statements as a result of various factors, many
of which are beyond the Company’s control.
The Company has based these forward-looking
statements on its current expectations and projections about future
events. Although the Company believes that the assumptions on which
the forward-looking statements contained herein are based are
reasonable, any of those assumptions could prove to be inaccurate.
As a result, the forward-looking statements based upon those
assumptions also could be incorrect. Risks and uncertainties may
affect the accuracy of forward-looking statements. Some, but not
all, of these risks are described in Item 1A. of Part 1 of the
Company’s Annual Report on Form 10-K for the fiscal year ended
September 30, 2022.
The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact: |
Daniel
Maudlin |
|
Vice President of Finance |
|
and Chief Financial Officer |
|
Haynes International, Inc. |
|
765-456-6102 |
|
|
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