Automotive components maker Hayes Lemmerz International has reported earnings from operations for the fiscal first quarter down to $7.4m from $13.2m a year earlier.
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Fiscal first quarter ended 30 April 30 sales were off 2.8% to $572.8m and 56% of sales came from international markets.
The company said the fall was primarily the result of unfavourable currency exchange rates and the loss of sales from divested operations, with higher international volumes being offset by lower demand in the US.
Adjusted EBITDA for the first quarter was $48.7m, down from $60.9m in the first quarter of fiscal 2005. Capital expenditures during the quarter were $12.3m, a reduction of $24.1m from the prior year period. For the quarter, the company reported a net loss of $17.6m, compared with a year earlier loss of $7.7m.
In a statement, Curtis Clawson, president, CEO and chairman said: “I am pleased with our progress in all four areas. In addition to the previously announced business unit restructuring and employee compensation actions, our newly expanded Chihuahua plant is now running at full capacity and we have a number of key product launches coming in the remainder of the year.
“In addition to reducing capital expenditures, we have focused what we do spend on growth areas, with 62% of capital expenditures during the first quarter being invested outside the US. We also improved liquidity and made substantial progress toward achieving positive free cash flow during the quarter.”
For the full 2006 fiscal year, the company expects to achieve higher adjusted EBITDA and improved free cash flow than in fiscal 2005, with capital expenditures of less than $100m.
