Hayes Lemmerz International Reports Rise in Net Income and Sales
27 August 1998
Hayes Lemmerz International Reports 60% Increase in Net Income and a 38% Rise in Sales in Second Quarter
- Quarter Highlighted By Key Acquisitions That Enhance Global Leadership
Position, As EPS Beats Analysts' Estimates -
ROMULUS, Mich., Aug. 27 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, today reported a 60 percent increase in net
income of $7.5 million or $.23 diluted earnings per share for the second
quarter ended July 31, 1998, before the effects of certain extraordinary
items. This compares to $4.7 million or $.20 diluted earnings per share for
the same period in 1997.
Corresponding sales for the second quarter were $383 million compared to
$278 million for the same quarter 1997, a 38 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. These second quarter results
included the effect of the GM strike, which impacted sales by $29 million and
diluted earnings per share by $.16 in the second quarter.
For the six months ended July 31, 1998, sales were $797 million, compared
to $528 million for the second quarter 1997. Net income, before the effects
of certain extraordinary items, was $22.2 million, or $.68 per share versus
year-to-date second quarter 1997 results of $8.5 million, or $.37 per share.
The extraordinary item that affected second quarter earnings is a one-time
charge of $8 million net of tax for the write-off of deferred financing costs
related to the restructuring of the company's senior credit facility that was
completed in the quarter. The interest savings related to this one-time
write-off and debt restructuring is over $4 million annually.
Comparisons of pro-forma results for 1998 and 1997, which assume that
Lemmerz, Borlem, Alumitech, N.F. Die, MIN-CER and Kalyani had all been
acquired at the beginning of fiscal year 1997, show pro-forma second quarter
1998 earnings from operations of $37.9 million compared to $36.2 million in
the pro-forma second quarter 1997, an increase of 5 percent. For the quarter,
pro-forma EBITDA increased by 6 percent to $61.3 million from $57.6 million
pro-forma in the second quarter 1997. Pro-forma diluted earnings per share,
before extraordinary items, almost doubled from $.13 per share in 1997 to
$.22 per share in the second quarter 1998 and pro-forma sales for the second
quarter were $414 million compared to $413 million in 1997. Excluding the GM
strike, operating profit would have increased 30 percent and EBITDA 22 percent
due to higher sales and productivity gains in all businesses and sales would
have increased by over 7 percent due to strong volumes in Europe and increased
demand for commercial highway products.
"It was a very good quarter for Hayes Lemmerz as we continued to show
strong operating results despite the GM strike," said Ron Cucuz, Chairman and
CEO of Hayes Lemmerz. "We have also taken major steps in 1998 in solidifying
our global position with the recent acquisitions of Borlem In Brazil, N.F. Die
in South Africa, Alumitech in the United States, MIN-CER in Mexico, and
Kalyani in India, which further strengthen our position as the world's leading
supplier of wheels and brake components to the automotive and commercial
highway markets. The acquisitions will add $300 million of sales by the year
2000 and will also be significantly accretive."
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 and South
America, Europe, and Asia. Hayes Lemmerz International has more than
10,000 employees and 26 manufacturing facilities in 12 countries worldwide.
For more information about Hayes Lemmerz International, visit the
corporate web site, http://www.hayes-lemmerz.com.
HAYES LEMMERZ INTERNATIONAL, INC.
Second Quarter Results
Pro-Forma
Quarter Ended July 31
$ Millions 1998(A) 1997
Sales $414.3 $412.8
Earnings from operations $ 37.9 $ 36.2
Net Income $ 7.2 $ 4.2
Per Share Data:
Basic earnings per share data $ 0.24 $ 0.14
Diluted earnings per share data $ 0.22 $ 0.13
Basic weighted average
common shares (000's) 30,124 30,124
Diluted weighted average
common shares (000's) 32,916 32,916
Six Months Ended July 31
1998(A) 1997
Sales $871.8 $820.3
Earnings from operations $ 86.7 $ 70.8
Net income $ 20.7 $ 8.3
Per Share Data:
Basic earnings per share data $ 0.69 $ 0.28
Diluted earnings per share data $ 0.63 $ 0.25
Basic weighted average
common shares (000's) 30,107 30,107
Diluted weighted average
common shares (000's) 32,668 32,668
(A) Excludes one-time, extraordinary charge of $3.3 million after tax for
write-off of deferred financing costs.
HAYES LEMMERZ INTERNATIONAL, INC.
Second Quarter Results
Quarter Ended July 31
$ Millions 1998 1997
Sales $ 383.0 $ 277.9
Earnings from operations $ 37.1 $ 30.0
Earnings before extraordinary loss $ 7.5 $ 4.7
Extraordinary loss, net of tax $ 8.3 $ --
Net income (loss) $ (0.8) $ 4.7
Per Share Data:
Net earnings before extraordinary loss $ 0.25 $ 0.20
Extraordinary loss, net of tax (0.28) --
Basic loss per share $ (0.03) $ 0.20
Basic average common shares (000's) 30,124 24,075
Net earnings before extraordinary loss $ 0.23 $ 0.20
Extraordinary loss, net of tax (0.25) --
Diluted earnings per share $ (0.02) $ 0.20
Diluted average common shares (000's) 32,916 24,075
HAYES LEMMERZ INTERNATIONAL, INC.
Six Month Results
Six Months Ended July 31
$ Millions 1998 1997
Sales $ 796.9 $528.1
Earnings from operations $ 87.0 $ 55.2
Income before extraordinary loss $ 22.2 $ 8.5
Extraordinary loss, net of tax $ 8.3 $ --
Net income (loss) $ 13.9 $ 8.5
Per Share Data:
Net earnings before extraordinary loss $ 0.74 $ 0.37
Extraordinary loss, net of tax $ (0.28) $ --
Basic loss per share $ 0.46 $ 0.37
Basic average common shares (000's) 30,107 23,246
Net earnings before extraordinary loss $ 0.68 $ 0.37
Extraordinary loss, net of tax (0.25) --
Diluted earnings per share $ 0.43 $ 0.37
Diluted average common shares (000's) 32,668 23,246