UPDATE 1-Haynes International posts Q2 loss

* Q2 loss $3.58 vs EPS $1.25 a year ago

* Q2 revenue drops 43 percent

* Sees lower shipments and order entry

* Sees drop in revenue till 2010

May 7 (Reuters) - Alloy maker Haynes International Inc (HAYN.O) swung to a second-quarter loss, hurt by a $43.7 million goodwill impairment charge, and said it expects a slow-down in shipments and order entry as a result of the credit crisis.

The company said it expects backlog and, therefore, revenue to continue to decline until it stabilizes at "some point in fiscal 2010."

Backlog declined 23 percent during the quarter, partly due to lower demand from its end markets and falling raw material costs, the company said.

In the latest quarter, the company posted a net loss of $42.9 million, or $3.58 a share, compared with a profit of $15.1 million or $1.25 a share, a year ago.

Revenue for the quarter dropped to $120.4 million.