Hayes Lemmerz says third-quarter cash flow, liquidity improves

By Lisa Kerner

Charlotte, N.C., Dec. 11 - Hayes Lemmerz International, Inc. president and chief executive officer Curt Clawson said that while his company's third-quarter results "weren't bad" for the year to date, it will have to "play ball in the fourth quarter."

Clawson made the remarks during the Northville, Mich., automotive supplier's conference call for investors on Monday.

His team's "organizational focus" contributed to increased free cash flow of $27.6 million and improved liquidity of $158 million, up $6 million from the second quarter and $66 million from the prior-year period, Clawson noted.

"We've always managed liquidity well. We feel real comfortable with liquidity now. It gives us the safety line we need if industry storms gather on the horizon," Clawson said.

Clawson said the company is spreading its liquidity programs out globally to maintain adequate liquidity for the company as a whole. A new Czech securitization program provides about $16 million of liquidity, according to the call.

Cash flow was positively impacted by the third-quarter sale of Hayes Lemmerz's suspension machining plant in Southfield, Mich. - a good, but "pretty capex plant," Clawson said.

"We would rather spend money in wheel and rim plants," Clawson explained.

Capital expenditures were down $20 million from the previous year due to fewer requirements and completed projects.

The company was able to reduce its overall debt by roughly $24 million in the third quarter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.