5JAN201722042080 January 26, 2018
5JAN201722042080 January 26, 2018 To My Fellow Stockholders: After a challenging fiscal 2017 characterized by competitive pricing and low volume in some of our key markets, order entry has gained momentum through the beginning of fiscal 2018. We are hopeful that this is indicative of returning strength in our end markets. Aerospace, buoyed by the ramp-up of the new engine platforms, along with better activity in chemical processing special projects, are leading the way at this point, and we expect these markets, along with our tolling business and smaller industrial markets like heat treating and energy, to continue to expand as we move deeper into 2018. During fiscal 2017 and early fiscal 2018, we completed our major capital expenditure projects. During this cycle, we rebuilt, expanded, and improved our operating facilities and capabilities. Supporting our growth in aerospace, we upgraded and expanded our tubular products facilities, allowing us to ship a record volume of tubular products in 2017. In our flat roll operations, we have completed our capital investments in heat-treating, rolling and shape correction operations, particularly a significant expansion in our cold-rolling and finishing capabilities, which is expected to help us meet increasing demand in the aerospace market. We also completed the implementation of our new global IT system, migrating a myriad of discrete systems into a single, global operating platform enhancing our ability to monitor and optimize worldwide manufacturing and distribution operations. Supporting our service and value-added operations, we expanded our operations in LaPorte, Indiana and Openshaw, England in order to more efficiently meet the needs of our key markets.
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