NORTHVILLE, MI -- Hayes Lemmerz International reported that its quarterly loss from the 2005 fiscal third quarter (ending Oct. 31) widened from $5.3 million in the third period last year to more than $13 million. The company cited higher interest costs and lower domestic auto and light truck sales.

Sales for the fiscal third quarter rose 11 percent to $604.0 million from $545.9 million for the same period last year, helped by higher international volume, significant recovery from customers of increased steel prices and favorable foreign exchange rates, while North American sales were lower than a year earlier.

"Our long-term strategy again demonstrated its value by making it possible for us to realize increased sales and higher operating income despite the difficult business environment in North America,” said Curtis Clawson, president, CEO and chairman of the board of Hayes Lemmerz.

Recently, the company sold its hubs and drums business, and this week, completed the sale of its foundry operations in Cadillac, MI.

"We will continue to cut costs, rationalize our manufacturing capacity in the U.S., and improve efficiency worldwide. Continued cash flow generation and lowering our debt level is of the highest priority," said Clawson.

The company provided revised guidance for 2005, to reflect the continued softening in the North American market, the impact to revenue, profits and cash flow from companies sold, and less favorable exchange rates. Capital expenditures for the year are still expected to be under $130 million, the company said.

Due to uncertainties in the North American market, Hayes Lemmerz is not providing financial guidance for fiscal year 2006, but announced that it is targeting positive free cash flow with capital expenditures of under $100 million.

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