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HAYES WHEELS REPORTS FIRST-QUARTER RESULTS WELL ABOVE LAST YEAR

 ROMULUS, Mich., May 24 /PRNewswire/ -- Following are the first- quarter results for Hayes Wheels International, Inc. (NYSE: HAY):
 HAYES WHEELS INTERNATIONAL, INC.
 (Dollars in millions except share data)
 Quarter ended April 30: 1993 1992
 Sales $111.7 $107.0
 Earnings from operations $13.8 $10.5
 Income (loss) before cumulative effect
 of accounting changes $6.0 $1.1
 Cumulative effect of accounting changes $24.6 ---
 Net income (loss) ($18.6) $1.1
 Earnings (loss) per share data:
 Earnings (loss) before cumulative effect
 of accounting changes $0.34 $0.14
 Cumulative effect of accounting changes ($1.40) ---
 Earnings (loss) per share ($1.06) $0.14
 Average common shares 17,574,000 8,144,000
 Pro forma comparison:
 Earnings per share before cumulative
 effect of accounting changes $0.34 $0.25
 Average common shares 17,574,000 17,574,000
 Hayes Wheels International, Inc. today reported after-tax profit of $6.0 million, or $0.34 per share, for the first quarter of 1993, before one-time charges for changes in accounting principles related to employee benefits and income taxes. This is a significant increase from 1992 first-quarter net income of $1.1 million, or $0.14 per share, and 1992 pro forma net income of $4.4 million or $0.25 per share. Sales for the first quarter increased 4 percent from $107.0 million to $111.7 million.
 Three changes in accounting principles were adopted in the first quarter of 1993. The changes in accounting principles include SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," SFAS No. 109, "Accounting for Income Taxes" and SFAS No. 112, "Employers' Accounting for Postemployment Benefits."
 SFAS No. 106 requires the accrual of certain retiree benefits other than pensions -- primarily health-care benefits -- during the years employees provide services. SFAS No. 112 establishes accounting standards for employers who provide benefits to former or inactive employees after employment but before retirement. Those benefits include, but are not limited to, supplemental unemployment benefits, severance benefits, disability-related benefits (including workers' compensation), and continuation of benefits such as health-care benefits and life insurance. SFAS No. 109 relates to the accounting for income taxes. Consistent with Hayes Wheels' prospectus and annual report, the recognition of these changes in accounting principles is being recognized as a one-time charge resulting in a $24.6 million after-tax reduction in its first-quarter net results.
 The net loss for the first quarter, including the $24.6 million effect of the one-time accounting changes, was ($18.6) million, or ($1.06) per share.
 "The strength of our first-quarter performance is evidenced by our increase in earnings from operations, which rose 31 percent from prior year levels despite absorbing $1.1 million in additional ongoing expenses related to SFAS No. 106," said Ron Cucuz, president and CEO. "It's important to note that all areas of the business, Fabricated Wheels, North American Aluminum Wheels and European Aluminum Wheels, contributed to this strong performance," he added.
 Operating profit for North American Aluminum Wheels increased more than 45 percent from 1992 levels due to increased sales volume (up 33 percent from 1992 levels) and improved productivity. The Fabricated Wheels group improved operating profit close to 25 percent on flat sales because of productivity improvements implemented in 1992 and 1993. The European Aluminum Wheels business contributed operating results equal to 1992 levels despite a significant drop in European automobile production. This was accomplished through improved material and labor productivity.
 Interest expense for the first quarter of 1993 decreased significantly versus 1992 as a result of the restructuring that occurred during the company's initial public offering in late 1992. This restructuring had the combined impact of reducing debt as well as reducing the interest rate on the borrowings.
 Hayes Wheels is the world leader in the manufacture, design and supply of aluminum and steel wheels to original equipment manufacturers of passenger cars and light trucks.
 -0- 5/24/93
 /CONTACT: John Salvette of Hayes Wheels, 313-942-8689/
 (HAY)


CO: Hayes Wheels International, Inc. ST: Michigan IN: AUT SU: ERN

KE-JG -- DE002 -- 1477 05/24/93 07:18 EDT
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Publication:PR Newswire
Date:May 24, 1993
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