Higher European sales helped auto supplier Hayes Lemmerz International Inc. boost first-quarter revenue, but production cuts in the U.S. and higher raw-material prices hurt earnings.
For the first quarter, which ended April 30, Northville Township, Mich.,-based Hayes Lemmerz reported a net loss of $7.7 million or 20 cents a share on revenue of $618 million. That compares with net income of $1.1 million or 3 cents on revenue of $594 million in last year's first quarter.
Sales outside the U.S. were up nearly 20 percent, but the supplier's U.S. business was down 10 percent, including some key models for the company
In Europe, Hayes Lemmerz has become the No. 1 supplier of automotive steel and aluminum wheels to Toyota and the top aluminum-wheel supplier to Honda and the Nissan/Renault alliance.
Despite high raw-material prices, Hayes Lemmerz was successful in getting some price recovery from customers in the first quarter.
For the year, Hayes Lemmerz said it expects revenue of $2.3 billion to $2.4 billion and adjusted earnings before interest, taxes, depreciation and amortization of $220 million to $235 million. Cash flow is expected to be negative for 2005.
Hayes Lemmerz is 55th on the Automotive News ranking of top suppliers to North American manufacturers with $920 million in original equipment sales in 2004.