Hayes Lemmerz 3Q Sales Up 11 per cent
Hayes Lemmerz International, Inc today reported that sales for the fiscal third quarter ended 31 October 2005, rose 11 per cent to $604.0 million from $545.9 million for the same period last year. However Hayes Lemmerz reported net losses of $13.3 million, compared with $5.3 million in the same period last year, and issued revised guidance for 2005.
The company reported earnings from operations of $16.8 million, up 29 per cent from $13 million in the year earlier quarter. Adjusted EBITDA was $60.8 million for the third quarter of 2005, down slightly from $62.4 million a year earlier.
The company also provided revised guidance for 2005. Adjusted EBITDA is now expected to be approximately $180 million to $190 million (revised from prior guidance of $190 million to $205 million). Revenue is now expected to be $2.2 billion to $2.3 billion for the full year, and with a free cash flow between neutral and -$15 million for the full fiscal year. Capital expenditures for the year are still expected to be under $130 million, the company said. Hayes Lemmerz declined to give guidance for 2006, apparently due to current market uncertainties.
“In the face of lower sales of domestic auto and light truck sales, we are pleased with our third quarter results,” said Curtis Clawson, president, CEO and chairman of the board of Hayes Lemmerz. “We will continue to pursue our strategic plans to expand in low-cost countries, to serve our customers as they continue to expand in markets outside of the US and Western Europe,” Mr. Clawson said.
Mr Clawson noted that Hayes Lemmerz has secured over $300 million in new and carry-over business during the first nine months of 2005, and is winning new business internationally not only with Japanese manufacturers, but also with Korean auto makers. “We are winning new business with the OEMs who are winning the global automotive competition.