Hayes Lemmerz Reports Record Earnings in 1998
10 March 1999
Hayes Lemmerz Reports Record Earnings in 1998
Company CEO, Despite Fourth Quarter Results, Sees
'Significant Sales and Earnings Growth' in 1999 and Beyond
ROMULUS, Mich., March 10 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, today reported net income of $10.1 million or
$.31 diluted earnings per share for the fourth quarter ended January 31, 1999,
compared to net income for the same period in 1997 of $12.0 million or
$.38 diluted earnings per share.
Corresponding sales for the fourth quarter were $432 million, compared to
$372 million for the same quarter in 1997.
For the full 1998 fiscal year ended January 31, 1999, sales were
$1,673 million, compared to $1,270 million for the full year 1997. Net
income, before the effects of certain extraordinary items, was $52.0 million,
a 66 percent increase over last year's net income of $31.4 million. Diluted
earnings per share for the same period, before the effects of certain
extraordinary items, increased 43 percent to $1.60 per share versus $1.12 per
share for the same period in the prior year.
"Hayes Lemmerz had a record year in 1998 that resulted in dramatic profit
improvement and a near doubling of earnings over 1997. We remain confident
that both 1999 and 2000 will continue to show significant sales and earnings
growth," said Ron Cucuz, Chairman and C.E.O. "These strong results were
possible in spite of the downturn in developing markets, the impact of the
General Motors strike in the second quarter, and a production issue in our
North American fabricated wheel business. We expect to see steady
improvements throughout 1999 because we have taken the necessary actions to
reduce costs, to increase exports in Brazil and to improve equipment uptime in
our fabricated wheel business.
"Fiscal 1998 profit growth was driven by strong results in all of our
European businesses and the successful implementation of cost reduction
programs for our brake business and North American and European aluminum wheel
businesses," continued Mr. Cucuz. "The reductions in costs, gains in market
share across all of our businesses, the expansion of our aluminum product line
and of our enhanced suspension module capabilities through the acquisition of
CMI make us extremely confident that we will continue to deliver strong
results in the future."
Hayes Lemmerz International Inc., with the completion of its acquisition
of CMI International, is one of the world's leading global suppliers of
automotive and commercial highway wheels, brakes, suspension, structural and
other light weight components. Together, the company has pro forma sales of
close to $2.5 billion with 36 plants, eleven joint ventures and over 15,000
employees 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
Fourth Quarter Results
$ Millions
Quarter Ended Jan. 31
1999 1998
Sales $432.1 $371.9
Earnings from Operations $ 43.9 $ 45.9
Net Income $ 10.1 $ 12.0
Per Share Data:
Basic earnings per share data $ 0.33 $ 0.40
Diluted earnings per share data $ 0.31 $ 0.38
Basic weighted average common shares (000's) 30,324 30,108
Diluted weighted average common shares (000's) 32,286 31,751
HAYES LEMMERZ INTERNATIONAL
Fourth Quarter and Full Year Results
Pro-Forma
$ Millions
Quarter Ended Jan. 31
1999 1998
Sales $432.1 $424.7
Earnings from Operations $ 43.9 $ 44.7
Net Income $ 10.1 $ 10.0
Per Share Data:
Basic earnings per share data $ 0.33 $ 0.33
Diluted earnings per share data $ 0.31 $ 0.31
Basic weighted average common shares (000's) 30,324 30,324
Diluted weighted average common shares (000's) 32,286 32,286
Twelve Months Ended Jan. 31
1999* 1998
Sales $1,748.2 $1,671.9
Earnings from Operations $ 187.4 $ 159.8
Net Income $ 49.6 $ 27.4
Per Share Data:
Basic earnings per share data $ 1.64 $ 0.91
Diluted earnings per share data $ 1.53 $ 0.84
Basic weighted average common shares (000's) 30,217 30,217
Diluted weighted average common shares (000's) 32,474 32,474
* 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
Alumitech.
HAYES LEMMERZ INTERNATIONAL
Full Year Results
$ Millions
Twelve Months Ended Jan. 31
1999 1998
Sales $1,672.9 $1,269.8
Earnings from Operations $ 188.0 $ 145.5
Income before extraordinary loss $ 52.0 $ 31.4
Extraordinary loss, net of tax $ 8.3 $ --
Net Income $ 43.7 $ 31.4
Per Share Data:
Net earnings before extraordinary loss $ 1.72 $ 1.19
Extraordinary loss, net of tax $ (0.27) $ --
Basic earnings per share $ 1.45 $ 1.19
Basic average common share (000's) 30,217 26,512
Net earnings before extraordinary loss $ 1.60 $ 1.12
Extraordinary loss, net of tax $ (0.25) $ --
Diluted earnings per share $ 1.35 $ 1.12
Diluted average common shares (000's) 32,474 28,132