Hayes Lemmerz Announces Second Quarter Results
6 September 2000
Hayes Lemmerz Announces Second Quarter Results
NORTHVILLE, Mich., Sept. 6 Hayes Lemmerz International,
Inc. , today announced results for the second quarter ended
July 31, 2000. Second quarter sales were $543 million compared to
$544 million in second quarter 1999. Second quarter 2000 diluted earnings per
share was $.21, versus $.41 in the second quarter last year. Sales for the
first six months of 2000 were $1,138 million compared to $1,132 million in
first half of 1999, while 2000 diluted earnings per share for the first half
was $.73 compared to $.93 per share last year.
Earnings per share for the second quarter and the first six months were
impacted primarily by the drop in heavy truck production in the United States,
coupled with the devaluation of the euro versus the dollar. Second quarter
results also include the auto companies' model changeover period, and the
company experienced certain inefficiencies in the second quarter related to
new model production launches. These production inefficiencies will be
eliminated as production is ramped up through the third quarter.
The company approved a stock buyback program in the second quarter, to
purchase up to $30 million of its common stock outstanding. As of August 31,
2000, the company has acquired close to 1.3 million shares for approximately
$18 million.
"Our second quarter global OEM sales volumes continued to remain
relatively strong," said Ron Cucuz, Chairman and CEO of Hayes Lemmerz
International. "However, our second quarter earnings were below last year as
we continued to be impacted by lower truck production in the U.S. and the euro
devaluation. We have taken actions to reduce manpower and other costs in our
heavy truck business, as well as to target incremental market share, to
maintain margins. We also had several new model launches in the second
quarter and we experienced certain operating inefficiencies that will
dissipate as these new products reach full production.
"We continue to successfully expand aluminum wheel capacity in the United
States, Mexico, the Czech Republic, Thailand and South Africa to meet the
strong demand for our aluminum wheels globally. Our North American steel
wheel business is benefiting from the major restructuring and introduction of
innovative new products the last several years, and is delivering strong
results, while the restructuring program for our steel wheel business in
Europe continues on target this year.
"We also continued to strengthen our strategic position as a leading
supplier of suspension components," continued Ron Cucuz. "We continue to gain
significant new contracts in North America. We also announced the formation
of our European Chassis Components Group in late 1999 and recently announced
the acquisition of the Schenk foundry in Germany, positioning ourselves to
grow our aluminum suspension business in Europe as well."
Hayes Lemmerz International
Second Quarter Results
$ Millions Quarter Ended July 31
2000 1999
Sales $542.8 $544.4
Earnings from Operations $52.0 $62.6
Net Income $6.5 $13.3
Per Share Data:
Basic earnings per share data $0.21 $0.44
Diluted earnings per share data $0.21 $0.41
Basic weighted average common shares (000's) 30,357 30,337
Diluted weighted average common shares (000's) 30,446 32,219
Hayes Lemmerz International
Second Quarter Results
$ Millions Six Months Ended July 31
2000 1999
Sales $1,137.6 $1,132.3
Earnings from Operations $119.5 $131.4
Net Income $22.2 $29.6
Per Share Data:
Basic earnings per share data $0.73 $0.98
Diluted earnings per share data $0.73 $0.93
Basic weighted average common shares (000's) 30,357 30,330
Diluted weighted average common shares (000's) 30,575 31,977