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 ROMULUS, Mich., Nov. 18 /PRNewswire/ -- Hayes Wheels International, Inc. (NYSE: HAY), announced improved sales and earnings for the third quarter ended Oct. 31, 1993. Net income was up 76 percent for the quarter versus pro forma 1992 results, despite the negative impact of the new federal tax legislation.
 Ron Cucuz, president and chief executive officer, said, "We are very pleased with Hayes Wheels earnings for the third quarter. Despite the recession in Europe and the charge for federal tax changes, we showed substantial earnings growth. Our North American Aluminum Wheels Business posted a 32-percent sales increase for the quarter due to strong sales to Chrysler and the launch of new models for the General Motors S-Trucks. Our Fabricated Wheel Business registered substantially improved earnings due to continued gains in productivity -- despite sluggish sales from General Motors."
 For the third quarter, net sales increased 10 percent to $107.4 million, up from $97.7 million recorded for the same period last year. Sales were down 34 percent in Europe due to the recession and currency devaluation, which was more than offset by an 18 percent sales increase in North America.
 Net income for the third quarter rose to $5.3 million, or 30 cents per share. In 1992, the company reported a net loss of $0.4 million or negative 5 cents per share for the third quarter. Net income for the third quarter in 1993 was 76 percent above pro forma fiscal year 1992 third-quarter net income of 17 cents per share, restated to reflect the financial restructuring from the company's December 1992 initial public offering. Included in the 1993 third-quarter results was a negative adjustment of $1.1 million, or 6 cents per share, to reflect the 1993 year-to-date impact of the new federal tax legislation.
 For the nine months ended Oct. 31, 1993, sales were up 2 percent to $317.9 million from $313.1 million for the first nine months of fiscal year 1992. Excluding one-time accounting charges, net income for the nine months was $16.9 million, or 96 cents per share. This represents a 34-percent improvement over pro forma 1992. Net income in the prior year was $2.6 million or 32 cents per share, representing $12.6 million or 72 cents per share on a pro forma basis.
 Including a first-quarter charge of $24.6 million for the effects of a one-time change of accounting principles to reflect SFAS No. 106, SFAS No. 109 and SFAS No. 112, the company showed a net loss for the first nine months of $7.7 million. Also included in the 1993 year-to- date net income were ongoing costs for SFAS No. 106 of $2.7 million or 15 cents per share, versus $0.5 million or 3 cents per share in pro forma 1992.
 "We expect fourth-quarter sales to show double-digit growth over last year," Cucuz added. "And we are in a strong position heading into 1994, when we will being shipping wheels for the Chrysler Neon and Ford Windstar."
 Hayes Wheels International is a world leader in the design, engineering and manufacture of steel and aluminum wheels for the automotive market in North America, Europe and Asia. Hayes Wheels is an affiliate of the Kelsey-Hayes Group of Companies.
 Third Quarter Results
 ($ Millions)
 Quarter Ended Oct. 31
 1993 1992
 Sales $107.4 $97.7
 Earnings from operations $14.4 $8.9
 Net income (loss) $5.3 ($0.4)
 Earnings (loss) per share
 data:(A) $0.30 ($0.05)
 Average common shares 17,574,000 8,144,000
 Pro forma:
 Earnings per share(A) $0.30 $0.17
 Average common shares 17,574,000 17,574,000
 Nine Months Ended Oct. 31
 1993 1992
 Sales $317.9 $313.1
 Earnings from operations $40.6 $31.0
 Income (loss) before
 cumulative effect of
 accounting changes $16.9 $2.6
 Cumulative effect of
 accounting changes ($24.6) ---
 Net income (loss) ($7.7) $2.6
 Earnings (loss) per share
 Earnings (loss) before
 cumulative effect of
 accounting changes(A) $0.96 $0.32
 Cumulative effect of
 accounting changes ($1.40) ---
 Earnings (loss) per share(A) ($0.44) $0.32
 Pro forma earnings/(loss)
 per share:(A) $0.96 $0.72
 (A) Included in the third quarter 1993 results are unfavorable adjustments related to the new corporate income tax rate as applied to the company's deferred tax liabilities ($0.04 per share) and to current year's earnings ($0.02 per share).
 -0- 11/18/93
 /CONTACT: John A. Salvette of Hayes Wheels International, 313-942-8689/

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

ML -- DETH01 -- 5826 11/18/93 07:16 EST
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Publication:PR Newswire
Date:Nov 18, 1993

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