From AFX News Limited

NORTHVILLE, MI -- Automotive wheel and brake supplier Hayes Lemmerz International Inc. on Friday issued preliminary 2006 guidance and warned its 2007 revenue would probably fall, due partly to the divestiture of its suspension components business.

The company, currently in restructuring, said it expects fiscal 2007 sales of about $2.1 billion and adjusted earnings before interest, taxes, depreciation and amortization of between $195 million and $205 million. The results will not include income from the company's suspension business, which it sold in February.

For fiscal 2006, the company projects revenue of $2.3 billion and adjusted EBITDA of about $188 million. In 2005, Hayes Lemmerz booked $2.27 billion in revenue.

Hayes Lemmerz is scheduled to report its 2006 results on April 4.

Auto suppliers have also struggled recently amid production cuts at North American automakers, especially those by General Motors Corp., Ford Motor Co. and DaimlerChrysler Corp.

Shares of Hayes Lemmerz rose 20 cents, or 4.2 percent, to $5 in afternoon trading on the Nasdaq Stock Exchange. The stock has traded in a 52-week range of $1.64 to $5.58.

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