Hayes Lemmerz Achieves Record Fourth Quarter and Full Year Results
9 March 2000
Hayes Lemmerz Achieves Record Fourth Quarter and Full Year Results
Total Year Diluted Earnings Per Share Up 29%, to $2.06
NORTHVILLE, Mich., March 9 Hayes Lemmerz International,
Inc. , one of the world's leading suppliers of wheels, brakes,
suspension, and other lightweight components to the automotive and commercial
highway markets, today announced record 1999 fourth quarter and full year
results. Highlights include:
Fourth quarter diluted earnings per share is up 65%, from $.31 to
$.51, and is better than the First Call consensus of $.48. Total year diluted
earnings per share is up 29%, to $2.06.
Fourth quarter and full year sales increased 31% and 37% respectively,
resulting from the CMI acquisition as well as growth in the base business,
especially aluminum wheels.
Operating profit increased 55% in the fourth quarter and 45% for total
1999, and operating margins continued to grow, from 11.2% in 1998 to 11.9% in
1999.
The CMI integration was successful and cost synergies of $11 million were
achieved in 1999 as originally targeted.
"We are pleased to announce another record year for sales and
profitability," said Ron Cucuz, Chairman and CEO of Hayes Lemmerz
International. "Not only did we deliver significant sales growth, but it was
very profitable growth with margins continuing to expand, all of which drove
diluted earnings per share up 29% over 1998."
The Company reported net income of $15.6 million, or $.51 per diluted
share, for the fourth quarter of fiscal 1999, which is up 65% from net income
of $10.1 million, or $.31 per diluted share for the fourth quarter of fiscal
1998. Total year earnings per share for the 1999 fiscal year ending, January
31, 2000, is $2.06, up 29% over fiscal 1998 earnings per share of $1.60.
Sales for the fourth quarter of fiscal 1999 were $566 million, up 31% over
fourth quarter 1998 sales of $432 million. Total fiscal 1999 sales were
$2,296 million, up 37% from $1,673 million in fiscal 1998. Sales continue to
grow due to the acquisition of CMI and organic growth, particularly in the
company's aluminum wheel business.
"Our wheel businesses continued to grow in 1999 and extend our global
leadership. Strong volumes in 1999 challenged our operations, but we
successfully expanded aluminum wheel capacity in the United States, Mexico and
the Czech Republic, and we acquired majority control of a strong aluminum
wheel venture in Thailand. Our wheel/tire assembly business continues to
expand as we launched two new facilities during the year and obtained a
contract for our sixth facility for BMW in Munich.
"We also continued to benefit from outsourcing in 1999," continued Ron
Cucuz, "as we were awarded all of the Ford in-house steel wheel production.
This new business includes several platforms and exceeds $50 million annually.
We successfully launched all of these parts in four plants in the
United States, Mexico and Brazil, which will benefit our 2000 results.
"This last year was also very important as we dramatically expanded our
product and process capabilities with the acquisition of CMI. The combination
of Hayes Lemmerz and CMI produces a world class supplier of suspension
components, provides expanded capabilities to design and develop suspension
modules and brings top technology in rapidly growing aluminum components. The
integration has gone extremely well and we delivered the $11 million of cost
synergies targeted for 1999. We have obtained new contracts and continue to
believe the growth prospects for aluminum suspension components are excellent.
"In summary 1999 was a very successful year," concluded Ron Cucuz, "as we
set new records in sales, operating profits and earnings per share. We
continued to expand our base business by obtaining significant new contracts,
and we successfully added new capacity around the world. We also expanded our
product and process technology with the acquisition of CMI and successfully
integrated operations realizing significant synergies. We remain confident
that we are well positioned to continue to grow sales, profits and shareholder
value in 2000 and beyond."
Hayes Lemmerz International, Inc is a leading global supplier of
automotive and commercial highway wheels, brakes, powertrain, suspension,
structural and other lightweight components. The Company has annual sales of
$2.3 billion with 43 plants, 8 joint venture facilities and over
15,000 employees worldwide.
Hayes Lemmerz International will be hosting a conference call to discuss
the companies fourth quarter earnings at 11 a.m. EST today, March 9, 2000.
The dial in number for domestic participants is 888-391-0089 and for
international participants is 415-904-2412. The reservation number is
14040080. Please dial into the conference call approximately five minutes
prior to the call.
A recording of this call will be available from 1 p.m. EST on March 9,
2000 thru 1 p.m. EST on March 13, 2000. To access this recording domestic
participants should dial 800-633-8284 and international participants should
dial 858-812-6440. The reservation number is 14040080.
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those expressed or implied in these statements
including but not limited to economic conditions in the automotive components
industry, risks associated with conducting business in foreign countries and
other factors discussed in the company's Securities and Exchange Commission
filings.
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
Fourth Quarter Results
Quarter Ended Jan. 31
$ Millions 2000 1999
Sales $565.6 $432.1
Earnings from operations $68.0 43.9
Net income $15.6 $10.1
Per Share Data:
Basic earnings per share $0.51 $0.33
Diluted earnings per share $0.51 $0.31
Basic average common shares (000's) 30,354 30,324
Diluted weighted average common shares (000's) 30,769 32,286
Hayes Lemmerz International
Full Year Results
Twelve Months Ended Jan. 31
$ Millions 2000 1999
Sales $2,296.4 $1,672.9
Earnings from Operations $272.7 $188.0
Income before extraordinary loss $65.1 $52.0
Extraordinary loss, net of tax -- (8.3)
Net Income $65.1 $43.7
Per Share Data:
Net earnings before extraordinary loss $2.15 $1.72
Extraordinary loss, net of tax -- $(0.27)
Basic earnings per share $2.15 $1.45
Basic average common share (000's) 30,335 30,217
Net earnings before extraordinary loss $2.06 $1.60
Extraordinary loss, net of tax -- $(0.25)
Diluted earnings per share $2.06 $1.60
Diluted average common shares (000's) 31,512 32,474
Hayes Lemmerz International
Fourth Quarter and Full Year Results
Pro-Forma
Quarter Ended Jan. 31
$ Millions 2000 1999
Sales $565.6 $546.4
Earnings from Operations $68.0 $50.6
Net Income $15.6 $5.7
Per Share Data:
Basic earnings per share data $0.51 $0.19
Diluted earnings per share data $0.51 $0.19
Basic weighted average common shares (000's) 30,354 30,354
Diluted weighted average common shares (000's) 30,769 30,769
Twelve Months Ended Jan. 31
2000 1999
Sales $2,296 $2,250.3
Earnings from Operations $272.4 $235.4
Net Income $65.1 $43.3
Per Share Data:
Basic earnings per share data $2.15 $1.43
Diluted earnings per share data $2.06 $1.37
Basic weighted average common shares (000's) 30,335 30,335
Diluted weighted average common shares (000's) 31,512 31,512
CONTACT: William D. Shovers of Hayes Lemmerz International, 734-737-5100;
or Peter Collins of Rubenstein Associates, 212-843-8050,
for Hayes Lemmerz International