Hayes Lemmerz International Reports Record Earnings
3 December 1998
Hayes Lemmerz International Reports Record Earnings; 81% Increase in Net Income and 20% Rise in Sales in Third Quarter
- Quarter Highlighted by Major Acquisition that Positions
Hayes Lemmerz as a Leading Corner Module Supplier -
ROMULUS, Mich., Dec. 3 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, today reported net income of $19.7 million or
$.62 diluted earnings per share for the third quarter ended October 31, 1998,
an 81 percent increase over net income for the same period in 1997 of
$10.9 million or $.34 diluted earnings per share.
Corresponding sales for the third quarter were $444 million, compared to
$370 million for the same quarter in 1997, a 20 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.
For the nine months ended October 31, 1998, sales were $1,241 million,
compared to $898 million for the nine months of 1997. Net income, before the
effects of certain extraordinary items, was $41.9 million, more than doubling
last year's nine-month net income of $19.4 million. Diluted earnings per
share for the same period, before the effects of certain extraordinary items,
increased 79 percent to $1.29 per share versus $.72 per share for the same
period in the prior year.
Comparisons of the third quarter 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 increases in
third quarter 1998 sales, EBITDA, and earnings from operations of 4 percent,
19 percent, and 29 percent, respectively, over the 1997 third quarter.
Pro-forma third quarter diluted earnings per share more than doubled to
$.62 per share from $.28 per share in 1997.
"Our strong customer relationships around the globe, innovative
technology, and dedication to world-class quality enable us to continue to
deliver very strong sales and earnings growth in the third quarter," said
Ron Cucuz, Chairman and CEO of Hayes Lemmerz. "We continue to realize the
benefits both in the market place, as well as from significant cost savings
programs associated with the Motor Wheel and Lemmerz acquisitions. We have
also taken another major step in positioning Hayes Lemmerz as a leading
supplier of corner components and modules with the recently announced
acquisition of CMI International, Inc., which is expected to close in
Hayes' fourth quarter. CMI is a leader in the growing lightweight aluminum
and polymer components market.
"We are excited by the CMI acquisition and all of its global opportunities
which it presents. Together Hayes and CMI will form one of the top producers
of products for the corner of the car, including wheels, brake and suspension
parts, and aluminum structural components. We also offer our customers
complete corner modules. In addition, we are looking forward to building
CMI's presence in Europe and in some of the world's emerging markets. All of
this will enhance shareholder value and lead to enhanced growth opportunities
going forward."
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 11,000 employees and 27 manufacturing facilities in 12 countries
worldwide.
For more information about Hayes Lemmerz International, please be sure to
visit the web site at http://www.hayes-lemmerz.com.
HAYES LEMMERZ INTERNATIONAL, INC.
Third Quarter Results
Quarter Ended Oct. 31
$ Millions 1998 1997
Sales $443.9 $369.8
Earnings from operations $57.1 $44.3
Net income $19.7 $10.9
Per Share Data:
Basic earnings per share data $0.65 $0.34
Diluted earnings per share data $0.62 $0.34
Basic weighted average
common shares (000's) 30,180 31,691
Diluted weighted average
common shares (000's) 32,003 31,691
HAYES LEMMERZ INTERNATIONAL, INC.
Nine Month Results
Nine Months Ended Oct. 31
$ Millions 1998 1997
Sales $1,240.8 $897.9
Earnings from operations $144.1 $99.6
Income before
extraordinary loss $41.9 $19.4
Extraordinary loss,
net of tax $8.3 $--
Net income $33.6 $19.4
Per Share Data:
Net earnings before
extraordinary loss $1.39 $0.72
Extraordinary loss,
net of tax $(0.28) $--
Basic loss per share $1.11 $ 0.72
Basic average common
shares (000's) 30,134 26,803
Net earnings before
extraordinary loss $1.29 $0.72
Extraordinary loss,
net of tax $(0.26) $--
Diluted earnings
per share $1.03 $0.72
Diluted average
common shares (000's) 32,482 26,803
HAYES LEMMERZ INTERNATIONAL, INC.
Third Quarter Results
PRO-FORMA
Quarter Ended Oct. 31
$ Millions 1998 1997
Sales $443.9 $426.9
Earnings from operations $57.1 $44.3
Net Income $19.7 $9.1
Per Share Data:
Basic earnings
per share data $0.65 $0.30
Diluted earnings
per share data $0.62 $0.28
Basic weighted average
common shares (000's) 30,180 30,180
Diluted weighted average
common shares (000's) 32,003 32,003
Nine Months Ended Oct. 31
1998* 1997
Sales $1,315.7 $1,247.2
Earnings from operations $143.9 $115.1
Net income $40.4 $17.4
Per Share Data:
Basic earnings
per share data $1.34 $0.58
Diluted earnings
per share data $1.24 $0.54
Basic weighted average
common shares (000's) 30,134 30,134
Diluted weighted average
common shares (000's) 32,482 32,482
* Excludes one-time, extraordinary charge of $8.3 million after tax for
write-off of deferred financing costs.
Note: Pro-forma for Lemmerz, N.F. Die, Borlem, Kalyani,
Min-Cer, and Alumitcech