NORTHVILLE, MI — Hayes Lemmerz International reported that sales for the fiscal first quarter, which ended on April 30, rose 15 percent to $594.1 million from $515.3 million a year earlier. Earnings from operations for the first quarter rose to $26.2 million, compared with $14.4 million a year earlier, excluding fresh start accounting adjustments and reorganization items.
According to Curtis Clawson, president, CEO and chairman Hayes Lemmerz, this is the company’s best quarter yet since emerging from Chapter 11 in June 2003. “Our intense focus on operational excellence and financial discipline is bearing fruit,” said Clawson.
The company reported a net loss of $2.7 million for the first quarter of fiscal 2004, after taking a charge of $12.2 million for early extinguishment of debt. This compares with a year earlier loss of $22.6 million.
Cash generated from operations rose strongly in the quarter to $71.9 million, from $17.1 million in the year-earlier quarter. Capital expenditures were $29.3 million in the recent quarter, compared with $20 million a year earlier.
During the first quarter, Hayes Lemmerz redeemed $87.5 million of its 10-1/2 percent Senior Notes and prepaid $16.0 million of its Term Loan B, following completion of a $125.5 million follow-on equity offering on February 11. First quarter results reflected a $12.2 million charge for early debt extinguishment.
With those debt reductions, net debt at the end of first quarter was $578.6 million, a reduction of $150 million from year-end fiscal 2003. The company has not borrowed under its $100 million revolving credit facility since its emergence from Chapter 11. Because Hayes Lemmerz emerged from Chapter 11 reorganization in June 2003, financial results for the current year and prior year are not fully comparable, the company noted.
For more information about Hayes Lemmerz, visit: www.hayes-lemmerz.com.
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