Hayes Lemmerz Financial Results
“This is by far our best quarter, both operationally and financially, since Hayes Lemmerz emerged from chapter 11 reorganization in June 2003. Our sales were up strongly across all segments of the business and our operational efficiency continued to improve, with gross margins increasing to 12.5% from 10% a year ago,” said Curtis Clawson, president, chief executive officer and chairman of the board.
The company reported a net loss of $2.7 million for this first quarter after taking charge of $12.2 million for early extinguishment of debt. This compares with a $22.6 million loss from the corresponding period of 2003.
With those debt reductions, net debt at the end of the first quarter was $578.6 million, a reduction of $150 million from year-end fiscal 2003. The company has not borrowed under its $100 million revolving credit facility since its emergence from chapter 11.