Hayes Lemmerz International, Inc. Reports Earnings
10 March 1998
Hayes Lemmerz International, Inc. Reports Record Earnings
ROMULUS, Mich., March 10 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, today reported fourth quarter 1997 income of
$12.0 million or $.38 diluted earnings per share, ahead of the First Call
fourth quarter estimate. This compares to $2.8 million or $.13 diluted
earnings per share, prior to nonrecurring charges, for the fourth quarter of
1996. Sales for the quarter were $372 million compared to $222 million for
the fourth quarter 1996, or a 68% increase. The sales increase was due
primarily to the additional sales contributed by the acquisition of Lemmerz
Holding GmbH.
For the fiscal year 1997, sales were $1,270 million, 63 percent higher
than fiscal 1996 results of $778 million. Net income was $31.4 million or
$1.12 diluted earnings per share versus $8.0 million or $.29 diluted earnings
per share, before nonrecurring charges.
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
fourth quarter 1997 earnings from operations of $45.9 million compared to
$33.5 million in the fourth quarter 1996. This 37 percent increase was due
primarily to increased sales, improved operating results and productivity
gains in all businesses. Pro-forma EBITDA for the fourth quarter 1997 was
$63.8 million versus $51.6 million in the fourth quarter 1996.
Fourth quarter diluted earnings per share increased from $.14 per share in
1996 to $.38 per share for the pro-forma fourth quarter 1997. Pro-forma sales
for the fourth quarter 1997 increased by 8 percent to $372 million.
For pro-forma fiscal year 1997, sales were $1,456 million, a 6 percent
increase over the $1,373 million for pro-forma 1996. Earnings from operations
improved by 36 percent to $161 million. Similarly, pro-forma EBITDA increased
23 percent to $235 million. Pro-forma diluted earnings per share for 1997 was
$1.07 per share compared to $.32 per share for pro-forma 1996.
"The benefits of our acquisitions with Motor Wheel and Lemmerz continue to
be reflected in our operating results," said Ron Cucuz, chairman and chief
executive officer. "Our 1997 earnings from operations improved 36 percent
over the pro-forma results from 1996. We remain on target with our cost
savings efforts related to the Motor Wheel and Lemmerz acquisitions. We are
also very excited about 1998 as we continue to focus on the Lemmerz synergies
and launch innovative new products in the marketplace. With all of these
actions, we remain confident we will continue to deliver improved sales and
profitability in 1998 and beyond."
Hayes Lemmerz International, Inc., with annual sales of over $1.5 billion,
is the world's largest wheel manufacturer and is a 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.
Fourth Quarter Results
Quarter Ended January 31
1998 1997
$ Millions
Sales $371.9 $222.3
Earnings from operations $45.9 $23.3
Net earnings before non-recurring
charges $12.0 $2.8
Non-recurring charges, net of tax -- (69.6)
Net Income $12.0 $(66.8)
Per share data:
Net earnings before non-recurring charges $0.40 $0.13
Non recurring charges, net of tax -- (3.11)
Basic Earnings per share (loss) $0.40 $(2.98)
Basic average common shares 30,108,145 22,390,000
Net earnings before non-recurring charges $0.38 $0.13
Non-recurring charges net of tax -- (3.11)
Diluted earnings per share $0.38 $(2.98)
Diluted average common shares 31,750,835 22,390,000
HAYES LEMMERZ INTERNATIONAL, INC.
Full Year Results
Twelve Months Ended January 31
1998 1997
$ Millions
Sales $1,269.8 $778.2
Earnings from operations $145.5 $61.9
Net earnings before non-recurring
charges $31.4 $8.0
Non-recurring charges, net of tax -- (73.5)
Income before extraordinary items $31.4 $(65.5)
Extraordinary items, net of tax -- (7.4)
Net income (loss) $31.4 $(72.9)
Per-share data:
Net earnings before non-recurring
charges $1.19 $0.29
Non recurring charges, net of tax -- $(2.65)
Income before extraordinary items $1.19 $(2.36)
Extraordinary items, net of tax -- (.27)
Basic earnings per share (loss) $1.19 $(2.63)
Basic average common shares 26,511,908 27,703,O0O
Net earnings before non-recurring
charges $1.12 $0.29
Non-recurring charges net of tax -- $(2.65)
Income before extraordinary items $1.12 $(2.36)
Extraordinary items, net of tax -- (.27)
Diluted earnings per share $1.12 $(2.63)
Diluted average common shares 28,131,561 27,703,000
SOURCE Hayes Lemmerz International, Inc.