Hayes Lemmerz Reports OP of $7.4 Million in 1Q 2006

Hayes Lemmerz International, Inc. has reported that sales for the fiscal first quarter ended 30 April 2006 totalled $572.8 million, down 2.8 per cent from $589.2 million a year earlier, with approximately 56 per cent of sales from international markets. Earnings from operations for the fiscal first quarter were $7.4 million, down from $13.2 million a year earlier.

Adjusted EBITDA for the first quarter was $48.7 million, down from $60.9 million in the first quarter of fiscal 2005. Capital expenditure during the quarter was $12.3 million, a reduction of $24.1 million from the prior year period. For the quarter, the company reported a net loss of $17.6 million, compared with a year earlier loss of $7.7 million.

“Our key goals for 2006 are to execute on our operating plan, focus our capital expenditures in growth areas, maintain adequate liquidity and drive toward positive free cash flow,” said Curtis Clawson, president, CEO, and chairman of the board. “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. 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 $100 million.”