Alloy wheel specialist Hayes Lemmerz International has reported fiscal first quarter (30 April) sales of US$573.8m, up 15% year on year. Adjusted EBITDA improved 9% to $54.6m and core operating earnings (excluding discontinued operations and restructuring charges) improved to $25.2m from $21.1m a year earlier. The net loss for the quarter improved slightly to $12.8m, compared with a loss of $15.3m a year ago.
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“Hayes Lemmerz continues to show steady year-over-year improvement in operational results,” said president Curtis Clawson. “We made progress in the restructuring of our North American operations, and our results reflect the fruits of that long and challenging process.”
The company recently announced plans to close its aluminium wheel facility in Gainesville, Georgia by year end, due to global overcapacity in the light vehicle aluminium wheel market and increasing imports into North America from low-cost countries.
A portion of the annual production of the Gainesville facility will be transferred to Chihuahua, Mexico. The restructuring transaction will reduce costs and improve cash flow, the company said.
The supplier said it expects sales for the 2008 full fiscal year will range between $2.1 and $2.3bn, adjusted EBITDA will be between $205m and $220m, and capital expenditures will range between $95m and $105m. It continues to invest in profitable production facilities in leading-cost, high growth areas, including India, Brazil, Thailand, and Turkey.
“We are on track to achieve our primary short-term goals for 2008,” said Clawson. “We are executing our operating plan by improving core wheel financial results, and continued diversification of our business,” he added.
He noted that Hayes Lemmerz’ wheels are now on more than 200 platforms worldwide, and that no single platform accounts for more than 4% of sales.
“Our diverse customer portfolio and geographic mix helps protect us from problems experienced by any single platform or manufacturer and helps to soften the impact of lower volumes in the North American automotive market.”
