Hayes Lemmerz Reports Net Income of $10.9 Million for the Third Quarter
3 December 1997
Hayes Lemmerz Reports Net Income of $10.9 Million for the Third Quarter
ROMULUS, Mich., Dec. 3 -- Hayes Lemmerz International, Inc.
today reported third quarter 1997 net income of $10.9 million
or $.37 per share, before the effects of increased common stock equivalents.
Third quarter 1997 net income of $10.9 million compares to $4.7 million for
third quarter 1996, a $6.2 million increase. Sales for the quarter were $370
million, compared to $234 million for third quarter 1996, or a 58 percent
increase. The sales increase was due primarily to the additional sales
contributed by the acquisition of Lemmerz Holding GmbH.
For the nine months ended October 31, 1997, sales were $898 million,
compared to $556 million for the same period in 1996. Net income was $19.4
million or $.76 per share, before the effects of increased common stock
equivalents, versus $1.3 million in 1996, or $.05 per share, before
extraordinary items.
Comparisons of pro-forma results for 1997 and 1996, which assumes Lemmerz
and Motor Wheel were acquired as of the beginning of the 1996 fiscal year,
show third quarter 1997 sales of $370 million, an increase of 8 percent over
1996 pro-forma sales of $342 million. Pro-forma earnings from operations
increased from $35.2 million to $44.4 million, or an increase of $9.2 million.
This 26 percent increase was due primarily to increased sales, improved
operating results and productivity gains in all businesses. Pro-forma EBITDA
for the third quarter 1997 was $63.0 million, or 20 percent higher than the
pro-forma EBITDA of $52.5 for third quarter 1996. Third quarter net income of
$.37 per share was an increase of $.16 per share over last year's third
quarter pro-forma earnings per share of $.21 per share.
Earnings per share was $.37 per share prior to the effects of increased
common stock equivalents. Primary and fully dilutive earnings per share was
$.34 after the impact of 2.3 million shares of common stock equivalents which
were assumed to be outstanding at the average stock price of $34 per share
during the third quarter. Statement of Financial Accounting Standards No. 128
(SFAS 128) becomes effective for periods ending after December 15, 1997, and
will change the method of reporting common stock equivalents retroactive for
1997, starting with fourth quarter 1997, and under the new method, the basic
earnings per share for the third quarter 1997 will be $.37.
"It was another excellent quarter for Hayes," said Ron Cucuz, chairman and
chief executive officer. "Sales are up 8 percent while operating profit
increased 26 percent over last year. We continue to take advantage of
increased sales and improved productivity in all our businesses. We also
launched important new products, including the very successful launch of our
first high-volume full-face cast (FFC) wheel for the Ford Ranger. We are on
target with the total savings related to both the Motor Wheel and Lemmerz
acquisitions, and we remain confident that we will continue to deliver
improved sales and profitability in the months and years ahead.
"We also changed our name to Hayes Lemmerz International, Inc. on
October 26, 1997, which we believe better reflects our expanded global
presence and broader product line."
Hayes Lemmerz International, Inc., with annual sales of over $1.4 billion,
is the world's largest wheel manufacturer and is a world leader in the design,
engineering and manufacture of steel and aluminum wheels and brake drums and
rotors for the automotive and commercial highway markets in North America,
Europe and Asia.
HAYES LEMMERZ INTERNATIONAL, INC.
Third Quarter Results
Quarter Ended October 31
$ Millions 1997 1996
Sales $369.8 $234.4
Earnings from operations $44.4 $26.1
Net income $10.9 $4.7
Earnings per share data:
Pro-forma basic earnings per share (SFAS 128) $0.37 $0.21
Pro-forma basic weighted avg. common shares 29,340,000 22,390,000
Primary & fully diluted earnings per share $0.34 $0.21
Weighted avg. common shares 31,691,000 22,390,000
Nine Months Ended October 31
$ Millions 1997 1996
Sales $897.9 $555.8
Earnings from operations $99.6 $32.2
Income before extraordinary items $19.4 $1.3
Extraordinary (loss), net of tax ---- $(7.4)
Net income (loss) $19.4 $(6.1)
Earnings (loss) per share data:
Pro-forma basic earnings before extraordinary items $0.76 $0.05
Pro-forma basic extraordinary (loss), net of tax ---- $(0.25)
Pro-forma basic net income (loss) $0.76 $(0.20)
Pro-forma basic weighted avg. common shares 25,300,000 29,493,000
Primary earnings before extraordinary items $0.72 $0.05
Extraordinary (loss), net of tax ---- $(0.25)
Primary earnings (loss) per share $0.72 $(0.20)
Weighted avg. common shares 26,803,000 29,493,000
SOURCE Hayes Lemmerz International, Inc.