Hayes Lemmerz International Reports Record First Quarter Earnings
3 June 1999
Hayes Lemmerz International Reports Record First Quarter Earnings; Company Beats First Call Estimates of $.46 By More Than 10%
ROMULUS, Mich., June 3 -- Hayes Lemmerz International, Inc.
, one of the world's leading suppliers of wheels, brakes,
suspension, structural and other lightweight components to the automotive and
commercial highway markets, today announced record first quarter results.
Net income for first quarter 1999 was $16.3 million or $.51 diluted earnings
per share compared to last year's first quarter net income and diluted
earnings per share of $14.7 million and $.45 respectively. Diluted earnings
per share beat the First Call consensus estimate of $.46 by more than
10 percent.
First quarter sales increased from $414 million in 1998 to $588 million in
1999 as a result of several global acquisitions made in 1998 and the
acquisition of CMI completed at the start of 1999. The record first quarter
performance was the result of strong vehicle production in North America and
significant productivity improvements, including acquisition-related
synergies.
"The first quarter was another record quarter for Hayes Lemmerz," said
Ron Cucuz, Chairman and C.E.O. "Hayes Lemmerz has delivered significant sales
and earnings growth in 1997, 1998 and now in first quarter 1999. Sales
continue to grow, driven by strategic acquisitions, strong customer demand,
and successful new product launches, in both North America and Europe. We
also have a strong book of business and several important incremental
platforms launching later this year.
"The first quarter reflects the benefits of our relentless focus on cost
reduction and productivity improvement across all of our businesses. Our
leading edge technology has resulted in new products, which drive our growth,
and our high quality, low cost position. We leverage our new technology and
manufacturing improvements across our businesses globally so that all of our
facilities are world class."
He added, "We have also delivered significant synergies from our recent
acquisitions, including restructuring of our aluminum wheel plants in Belgium
and in Kentucky and expansion of the Czech Republic steel wheel facility
related to the Lemmerz and Alumitech acquisitions. In addition, the
integration related to the CMI acquisition is on track and we are realizing
significant benefits in 1999.
"The recent CMI acquisition combines two market leaders in lightweight
suspension components and expands our future growth opportunities. The
combined company provides the capabilities to design and deliver complete
suspension modules. It also positions the Company with one of the broadest
product lines of growing lightweight aluminum components. With our expanded
product line and successful track record of growth, we are confident that we
are well positioned to continue to deliver strong results through 1999 and
into 2000 and beyond."
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 40 plants, 11 joint venture facilities 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
First Quarter Results
Quarter Ended April 30
$ Millions 1999 1998
Sales $587.9 $413.9
Earnings from Operations $ 68.8 $ 49.9
Net Income $ 16.3 $ 14.7
Per Share Data:
Basic earnings per share data $ 0.54 $ 0.49
Diluted earnings per share data $ 0.51 $ 0.45
Basic weighted average common shares (000's) 30,324 30,091
Diluted weighted average common shares (000's) 31,710 32,429
HAYES LEMMERZ INTERNATIONAL
First Quarter Results
Pro-Forma
Quarter Ended April 30
$ Millions 1999 1998
Sales $587.9 $597.7
Earnings from Operations $ 68.8 $ 62.9
Net Income $ 16.3 $ 13.2
Per Share Data:
Basic earnings per share data $ 0.54 $ 0.44
Diluted earnings per share data $ 0.51 $ 0.42
Basic weighted average common shares (000's) 30,324 30,324
Diluted weighted average common shares (000's) 31,710 31,706
CONTACT: William D. Shovers
Hayes Lemmerz International, Inc., 734-942-4187
Peter Collins
Rubenstein Associates, Inc., 212-843-8050