DETROIT -- Hayes Lemmerz International Inc., a maker of automotive wheels and components, reported a net loss of $462 million on sales of $2.28 billion during the fiscal year that ended Jan. 31. That compares with a loss of $62 million on sales of $2.14 billion for the previous fiscal year.
Excluding one-time write-downs and other charges, Hayes said it lost $81.4 million in the last fiscal year. After the announcement, Standard & Poor's downgraded Hayes' credit rating to B-, from B+, and said it is carrying $800 million in total debt, along with $400 million in unfunded employee-benefit obligations.
"Industry conditions for automotive suppliers have been tough because of higher raw-material costs, customer market-share shifts, product-mix changes and pricing pressure," Standard & Poor's credit analyst Martin King said in a statement.
"In addition, liquidity has become more constrained for these companies as their credit ratings have declined, reducing their borrowing availability under asset-based credit facilities and causing some vendors to tighten credit terms."