Hayes Lemmerz International Inc. said today that sales rose $91.6 million during the third quarter, but restructuring charges contributed to a larger net loss.
For the third quarter ending Oct. 31 Hayes reported a net loss of $62.7 million on sales of $554.9 million. For the same period last year the company reported a net loss of $59.6 million on sales of $463.3 million.
Hayes said the quarter included $50 million in write-downs and restructuring costs, while the year-earlier results included a large loss from discontinued operations.
During the third quarter Hayes sold a brake division with $250 million in annual sales to Curno, Italy-based Brembo S.p.A. for about $57 million. Hayes also wrote down the value of four plants.
I think we are getting closer to an endpoint in terms of restructuring Hayes Lemmerz, Hayes CEO Curtis Clawson said during a conference call earlier today with analysts.
Hayes makes wheels and other components for the automotive and commercial truck industries.
While the company has been selling divisions in recent years it also has been expanding its global manufacturing presence for its core wheel business.
In 2005 the companys wheel business generated earnings before income, taxes, deprecation and amortization of $139 million. This year Hayes estimates core profits from wheels be between $190 million and $200 million.
Our core wheel business is profitable and growing on a global basis, Clawson said.
Hayes, based in suburban Detroit, ranks No. 73 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $2.06 billion in 2006.