The company has been quick to point out, however, that this figure includes the sum of US$39 million paid as an asset impairment charge for their suspension facilities in Indiana and Michigan. Third quarter sales for the company were also down 2.4 per cent to US$589.5 million.
In spite of these figures, good progress has been made with the company’s restructuring plans. Hayes Lemmerz sold its Southfield, Mich., suspension facility during the third quarter, a move the company believes will further reduce their dependence on the North American automotive market. And of the approximately US$475 of new business the company has gained this year, 80 per cent is with international customers, including a number of Asian and European OEMs.
Hayes Lemmerz plans to counter the pressure being exerted upon it by US auto maker production cuts by stepping up production at its plants in Czech Republic, Thailand and Turkey. The company’s US expenditure, including employee wages and incentives, will continue to be restructured. This move is currently about two-thirds complete, and Hayes Lemmerz claims that it will save the company approximately US$35 in 2006 and annually thereafter.
The company expects to achieve full year sales of US$2.2 to US$2.3 billion. Shares jumped to a 10-month high of US$3.64 and on the Nasdaq to US$3.17 upon news of the restructuring progress and reports of an increased cash flow of US$27.6 million.
