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Case study

New products propel profitability for metals manufacturer

HeavyMetalCo experienced a serious decline in sales following the purchase of a finishing plant. We performed a full analysis of the client’s products and markets before we recommended that they focus on new frontiers and cut losses in a losing product line. The shift to new products resulted in quadrupled profits in just two years.

  • min read

At a Glance

  • 8% EBIT after Bain
  • 4x profit in two years

The Story

The Situation

After purchasing a finishing plant, HeavyMetalCo* experienced a serious and rapid decline in sales.

Our Approach

To discover what had gone wrong with Plant A, the Bain team conducted a full analysis of products and markets.

Our Recommendations

Bain's strategy to restore HeavyMetalCo to the black: focus resources on new markets and cut losses in a losing product line.

The Results

HeavyMetalCo adopted Bain's recommendations and implemented a phased shift into new markets. As a result, profits rose substantially.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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