Hayes Lemmerz Announces Fourth Quarter Results
NORTHVILLE, Mich., March 15 Hayes Lemmerz International,
Inc. today announced results for the fourth quarter ended January
31, 2001. Fourth quarter sales were $475 million compared to $566 million in
fourth quarter 1999. Fourth quarter EBITDA was $56 million compared to $102
million in 1999. Diluted earnings per share was a loss of $(.58), versus
earnings of $.51 in the fourth quarter last year. Sales for the full fiscal
year 2000 were $2,171 million compared to $2,296 million in 1999, while 2000
full year EBITDA, before the consideration of certain one-time charges in the
third quarter, was $336 million compared to $409 million in 1999 and diluted
earnings per share, before one-time charges, was $.31 (a diluted loss per
share of $1.41 including the impact of one-time charges) compared to $2.06 per
share last year.
Hayes Lemmerz results during the fourth quarter continued to be impacted
by a number of broad issues that affected the industry as a whole. These
included reduced North American production schedules for light vehicles,
further deterioration of heavy truck production in North America and the
translation impact of the devaluation of the euro. While these are the same
factors that affected the company in the third quarter, the severity of the
light vehicle production adjustments, and their impact on Hayes Lemmerz, were
much greater during the fourth quarter.
The fourth quarter for Hayes Lemmerz International includes November,
December and January, and these months all experienced dramatic production
cuts by the car companies. This significant inventory adjustment in North
America also resulted in a very volatile environment for production planning,
which further impacted operating efficiency at several of the company's North
American facilities. Despite the convergence of these negative factors, the
company has taken and will continue to take decisive actions to maintain
strong margins and generate cash flow in fiscal 2001.
"We experienced a very difficult North American market in the fourth
quarter," stated Ron Cucuz, Chairman and C.E.O. "Our fourth quarter was
heavily impacted by the drop in sales and the volatility related to our
customers sizeable inventory reductions. We have taken actions to reduce
costs in line with lower volumes."
"As we outlined last quarter, we expect to deliver over $20 million of
cost savings from restructuring programs in 2001," continued Ron Cucuz,
"including manufacturing rationalizations in North America, Germany and Brazil
and reductions in marketing general and administrative costs both in the
United States and Europe. We have reduced capital spending significantly in
line with the lower volumes. We also expect to benefit from the launch of net
incremental new business in excess of $150 million in 2001, including the
launch of our new aluminum components foundry in Michigan and continued gains
in aluminum wheels globally. We expect European results will be strong and
the euro strengthened as we began our 2001 fiscal year."
"We continue to project that we will be able to maintain strong margins
and cash flow in 2001, even at the lower vehicle production levels that we
have been projecting in North America, based on the combination of new
business and cost reductions coupled with strong performance in Europe. The
OEM inventory reductions were more dramatic, and happened quicker than we
anticipated in the fourth quarter, but we are hopeful that the majority of
this adjustment is behind us. Our customers' inventories appear to be coming
back in line and we expect to see North American vehicle production improve as
we move through the first and second quarters."
Hayes Lemmerz International, Inc.
Fourth Quarter Results
Fiscal Quarters *
$ Millions 2000 1999
(Unaudited)
Sales $475.4 $565.6
EBITDA ** $56.1 $102.3
Depreciation and Amortization (40.8) (34.3)
Earnings from Operations $15.3 $68.0
Net Income (Loss) $(16.5) $15.6
Per Share Data:
Basic earnings (loss) per share $(0.58) $0.51
Diluted earnings (loss) per share $(0.58) $0.51
Basic average common shares (000's) 28,455 30,354
Diluted weighted average common
shares (000's) 28,455 30,769
* Fiscal quarters ended January 31, 2001 and 2000
** Earnings before interest, taxes, depreciation and amortization
Hayes Lemmerz International
Full Year Results
Fiscal Years *
$ Millions 2000 1999
(Unaudited)
Sales $2,171.3 $2,296.4
EBITDA ** before non-recurring
charge $336.3 $408.8
Depreciation and Amortization (152.9) (136.1)
Earnings from Operations before non-
recurring charge 183.4 272.7
Non-recurring charge (87.8) -
Earnings from Operations $95.6 $272.7
Net Income before non-recurring
charge $9.1 $65.1
Non-recurring charge (50.9) -
Net Income (Loss) $(41.8) $65.1
Per Share Data:
Basic earnings per share before non-
recurring charge $0.31 $2.15
Non-recurring charge (1.72) -
Basic earnings (loss) per share $(1.41) $2.15
Diluted earnings per share before
non-recurring charge $0.31 $2.06
Non-recurring charge (1.72) -
Diluted earnings (loss) per share $(1.41) $2.06
Basic average common shares (000's) 29,585 30,335
Diluted weighted average common
shares (000's) 29,652 31,512
* Fiscal years ended January 31, 2001 and 2000
** Earnings before interest, taxes, depreciation and amortization
