Hayes Lemmerz Intl. Reports Record First Quarter Earnings
4 June 1998
Hayes Lemmerz International Reports Record First Quarter Earnings
Continuing Cost Savings Program Yields 41% Rise in Operating Earnings
and 27% Increase in EBITDA
ROMULUS, Mich., June 4 -- Hayes Lemmerz International
, the world's leading supplier of wheels and brake components to
the transportation industry, today reported record sales and earnings for
first quarter ending April 30.
Net income rose to $14.7 million or $.45 diluted earnings per share,over
three more than 1997 first quarter earnings of $3.8 million or $0.17 diluted
earnings per share. Corresponding sales for the first quarter were $413.9
million compared to $250.2 million for the same quarter 1997, a 65 percent
increase.
The sales and earnings increases were due primarily to improved operating
results and productivity gains associated with the acquisitions of Lemmerz
Holding GMBH in 1997 and Motor Wheel Corporation in 1996.
Comparisons of pro-forma results for 1998 and 1997, which assume Lemmerz
was acquired at the beginning of fiscal year 1997, show first quarter 1998
earnings from operations of $49.9 million, a 41 percent increase over
$35.4 million in the pro-forma first quarter 1997. EBITDA for the quarter
rose 27 percent to $69.8 million from $55.0 million pro-forma in the first
quarter 1997.
Diluted earnings per share more than doubled from $.18 per share pro-forma
in 1997 to $.45 per share in the first quarter while sales increased by
16 percent over pro-forma 1997 results to $414 million due to stronger volumes
in the North American and European aluminum wheel businesses and increased
demand for commercial highway products.
"We continue to deliver very strong sales and earnings growth in the first
quarter," said Ron Cucuz, Chairman and Chief Executive Officer of Hayes
Lemmerz. "We continue to realize the benefits both in the market place, as
well as from the significant cost savings programs associated with the Motor
Wheel and Lemmerz acquisitions. We have also taken major steps in solidifying
our global position with the recent acquisitions of Borlem in Brazil, N.F. Die
in South Africa, and Alumitech in North America. These acquisitions will have
sales of close to $200 million annually. These acquisitions further
strengthen our position as the leading supplier of wheels and brake components
to the transportation industry."
Hayes Lemmerz International, Inc. , with annual sales of over
$1.7 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 has more than
8,500 employees and 25 manufacturing facilities in nine countries worldwide.
HAYES LEMMERZ INTERNATIONAL, INC.
First Quarter Results
Quarter Ended April 30
$ Millions 1998 1997
Sales $413.9 $250.2
Earnings from
operations $ 49.9 $ 25.2
Net Income $ 14.7 $ 3.8
Per Share Data:
Basic earnings
per share data $ 0.49 $ 0.17
Diluted earnings
per share data $ 0.45 $ 0.17
Basic weighted
average common shares 30,091,000 22,390,000
Diluted weighted
average common shares 32,429,000 22,390,000
HAYES LEMMERZ INTERNATIONAL, INC.
First Quarter Results
PRO-FORMA
Quarter Ended April 30
$ Millions 1998 1997
Sales $413.9 $358.4
Earnings from
operations $ 49.9 $ 35.4
Net Income $ 14.7 $ 5.9
Per Share Data:
Basic earnings per
share data $ 0.49 $ 0.20
Diluted earnings per
share data $ O.45 $ 0.18
Basic weighted average
common shares 30,091,000 30,091,000
Diluted weighted average
common shares 32,429,000 32,429,000