Hayes Lemmerz International has reported a net loss of $US10.0 million, or 26 cents a share, for the second fiscal quarter ended July 31, 2004. No comparative figures were given.
For the first half, the company reported a net loss of $12.7 million, or 34 cents a share.
For the second fiscal quarter of 2004, earnings from operations excluding fresh start accounting adjustments and reorganisation items was $9.5 million, compared with $20.4 million a year earlier.
Sales for the second quarter rose 4% to $523.7 million compared with $502.8 million a year earlier. Sales for the six months ended July 31, 2004 were $1,117.8 million compared to $1,018.1 million a year earlier, an increase of 10%.
Increased volumes and favourable exchange rates abroad were offset by lower OEM production requirements in North America, lower unit pricing globally, and increased steel and iron prices.
For the six months ended July 31, 2004, earnings from operations with those exclusions amounted to $35.7 million, compared with $34.8 million a year earlier.
“I am encouraged by our continuing progress in making Hayes Lemmerz more cost-efficient and customer-focused in our operations,” said Curtis Clawson, chairman, president, and CEO.
“Given the challenges faced by our industry, including sharply higher steel costs and soft new vehicle sales, we did well in the second quarter.”
Clawson cautioned that Hayes Lemmerz will continue to face high materials costs, and also the impacts of new global competitors, especially in China.
“Our industry remains under intense pricing pressure from competitors, and from our major customers,” he said.
The second quarter results included $0.9 million of restructuring charges, primarily arising from severance and related closure costs of the Howell, Michigan, manufacturing plant as part of ongoing rationalisation.