Hayes Lemmerz International Reports Record Second Quarter Earnings
2 September 1999
Hayes Lemmerz International Reports Record Second Quarter Earnings
NORTHVILLE, Mich., Sept. 2 -- 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 second quarter results.
Net income for second quarter 1999 was $13.3 million or $0.41 diluted earnings
per share compared to last year's second quarter net income and diluted
earnings per share of $7.5 million and $0.23 respectively, before an
extraordinary charge in 1998 for the write-off of deferred financing costs.
Diluted earnings per share of $0.41 beat the First Call consensus estimate of
$0.39.
Second quarter sales increased from $383 million in 1998 to $544 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 second quarter
performance was the result of strong vehicle production in North America and
significant productivity improvements, including acquisition-related
synergies.
"The second 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 the first two quarters of 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. We have recently inaugurated new plants
including an aluminum wheel facility in the Czech Republic as well as a
wheel/tire sub-assembly facility for the Mercedes C Class vehicles in Bremen,
Germany."
"The second quarter also 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 $21 million related to the Lemmerz acquisition. 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. is one of the world's leading global
suppliers of automotive and commercial highway wheels, brakes, suspension,
structural and other lightweight components. The company has annual sales of
close to $2.5 billion with 40 plants, 8 joint venture facilities and
15,000 employees worldwide.
More information about Hayes Lemmerz International is available at
http://www.hayes-lemmerz.com, and a complete list of current and
archived press releases is available at http://www.hayes-lemmerz.com/press_kit
Hayes Lemmerz International
Second Quarter Results
Quarter Ended July 31
$ Millions 1999 1998
Sales $544.4 $383.0
Earnings from operations $ 62.6 $ 37.1
Earnings before extraordinary loss $ 13.3 $ 7.5
Extraordinary loss, net of tax $ -- $ (8.3)
Net income (loss) $ 13.3 $ (0.8)
Per Share Data:
Basic net earnings per before extraordinary loss $ 0.44 $ 0.25
Extraordinary loss, net of tax $ -- $(0.28)
Basic earnings (loss) per share $ 0.44 $(0.03)
Basic average common shares (000's) 30,337 30,124
Diluted net earnings before extraordinary loss $ 0.41 $ 0.23
Extraordinary loss, net of tax $ -- $(0.25)
Diluted earnings (loss) per share $ 0.41 $(0.02)
Diluted weighted average common shares (000's) 32,219 32,916
Hayes Lemmerz International
Six Month Results
Six Months Ended July 31
$ Millions 1999 1998
Sales $1,132.3 $ 796.9
Earnings from Operations $ 131.4 $ 87.0
Income before extraordinary loss $ 29.6 $ 22.2
Extraordinary loss, net of tax $ -- $ (8.3)
Net Income $ 29.6 $ 13.9
Per Share Data:
Net earnings before extraordinary loss $ 0.98 $ 0.74
Extraordinary loss, net of tax $ -- $ (0.28)
Basic earnings per share $ 0.98 $ 0.46
Basic average common share (000's) 30,330 30,107
Net earnings before extraordinary loss $ 0.93 $ 0.68
Extraordinary loss, net of tax $ -- $ (0.25)
Diluted earnings per share $ 0.93 $ 0.43
Diluted average common shares (000's) 31,977 32,668
Hayes Lemmerz International
Second Quarter Results
Pro-Forma
Quarter Ended July 31
$ Millions 1999 1998*
Sales $544.4 $532.3
Earnings from Operations $ 62.6 $ 48.3
Net Income $ 13.3 $ 4.7
Per Share Data:
Basic earnings per share data $ 0.44 $ 0.15
Diluted earnings per share data $ 0.41 $ 0.14
Basic weighted average common shares (000's) 30,337 30,337
Diluted weighted average common shares (000's) 32,219 32,219
Six Months Ended July 31
1999 1998*
Sales $1,132.3 $1,130.0
Earnings from Operations $ 131.4 $ 111.2
Net Income $ 29.6 $ 17.9
Per Share Data:
Basic earnings per share data $ 0.98 $ 0.59
Diluted earnings per share data $ 0.93 $ 0.56
Basic weighted average common shares (000's) 30,330 30,330
Diluted weighted average common shares (000's) 31,977 31,977
* Excludes one-time, extraordinary charge of $8.3 million after tax for
write-off of deferred financing costs.
CONTACTS: William D. Shovers of Hayes Lemmerz International, Inc.,
734-737-5100; or Peter Collins of Rubenstein Associates, Inc., 212-843-8050,
for Hayes Lemmerz International, Inc.