##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|           |  | For the quarterly period ended October 31, 2006                                             
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from           to                                             

Commission file number: 000-50303





Hayes Lemmerz International, Inc.


(Exact name of registrant as specified in its charter)


|                                                                                    |  |                                  
|----------------------------------------------------------------------------------- |  | ---------------------------------
|Delaware                                                                            |  | 32-0072578                       
|(State or other jurisdiction of incorporation or
    organization)                  |  | (IRS Employer Identification No.)
|                                                                                   
|15300 Centennial Drive Northville, Michigan(Address of principal executive offices) |  | 48168(Zip Code)                  

Registrants telephone number, including area code:


(734) 737-5000


þ o


12b-2


o þ o


12b-2 o þ




þ o












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##### 










HAYES LEMMERZ INTERNATIONAL, INC.


QUARTERLY REPORT ON
FORM 10-Q


TABLE OF CONTENTS


|                                                                              |  |                                                                                           |    |      |    | 
|----------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                                              |  |                                                                                           |    | Page |   
|                                                                              |  |                                                                                           |    |      |   
|PART I. FINANCIAL INFORMATION                                                
|Item 1.                                                                       |  | Financial Statements                                                                      |    |      | 2  | 
|                                                                              |  | Consolidated Statements of Operations                                                     |    |      | 2  | 
|                                                                              |  | Condensed Consolidated Balance Sheets                                                     |    |      | 3  | 
|                                                                              |  | Consolidated Statements of Cash Flows                                                     |    |      | 4  | 
|                                                                              |  | Consolidated Statements of Changes in
    Stockholders Equity (Deficit)                  |    |      | 5  | 
|                                                                              |  | Notes to Consolidated Financial
    Statements                                            |    |      | 6  | 
|Item 2.                                                                       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |    |      | 25 | 
|Item 3.                                                                       |  | Quantitative and Qualitative Disclosures
    about Market Risk                            |    |      | 37 | 
|Item 4.                                                                       |  | Controls and Procedures                                                                   |    |      | 38 | 
|                                                                             
|PART II. OTHER INFORMATION                                                   
|Item 1.                                                                       |  | Legal Proceedings                                                                         |    |      | 39 | 
|Item 1A.                                                                      |  | Risk Factors                                                                              |    |      | 39 | 
|Item 2.                                                                       |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                           |    |      | 39 | 
|Item 3.                                                                       |  | Defaults upon Senior Securities                                                           |    |      | 39 | 
|Item 4.                                                                       |  | Submission of Matters to a Vote of Security
    Holders                                   |    |      | 39 | 
|Item 5.                                                                       |  | Other Information                                                                         |    |      | 39 | 
|Item 6.                                                                       |  | Exhibits                                                                                  |    |      | 41 | 
|Signature                                                                     |  |                                                                                           | 42 |     
|Certification of Curtis J. Clawson, Chairman of the Board, President, and CEO
|Certification of James A. Yost, Vice President, Finance, and CFO             
|Certification of Curtis J. Clawson, Chairman of the Board, President, and CFO
|Certification of James A. Yost, Vice President, Finance, and CFO             



Unless otherwise indicated, references to we,
us, or our mean Hayes Lemmerz
International, Inc., a Delaware corporation, and our
subsidiaries. References to fiscal year means the
12-month period
commencing on February 1 of that year and ending January 31 of
the following year (e.g., fiscal 2006 means the period beginning
February 1, 2006, and ending January 31, 2007). This
report contains forward looking statements with respect to our
financial condition, results of operations, and business. All
statements other than statements of historical fact made in this
Quarterly Report are forward-looking. Such forward-looking
statements include, among others, those statements including the
words expect, anticipate,
intend, believe, and similar language.
These forward looking statements involve certain risks and
uncertainties. Our actual results may differ significantly from
those projected in the forward-looking statements. Factors that
may cause actual results to differ materially from those
contemplated by such forward looking statements include, among
others: (1) competitive pressure in our industry;
(2) fluctuations in the price of steel, aluminum and other
raw materials; (3) changes in general economic conditions;
(4) our dependence on the automotive industry (which has
historically been cyclical) and on a small number of major
customers for the majority of our sales; (5) pricing
pressure from automotive industry customers and the potential
for re-sourcing of business to lower-cost providers;
(6) changes in the financial markets or our debt ratings
affecting our financial structure and our cost of capital and
borrowed money; (7) the uncertainties inherent in
international operations and foreign currency fluctuations;
(8) our ability to divest non-core assets and businesses;
and (9) the risks described in our most recent Annual
Report on
Form 10-K. You are
cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date of this Quarterly
Report on
Form 10-Q. We have
no duty to update the forward looking statements in this
Quarterly Report on
Form 10-Q and we
do not intend to provide such updates.


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##### Table of Contents








|        |                     
|------- | --------------------
|Item 1. | Financial Statements

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)


|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |        |       |      |         |       |       |      | 
|-------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------- | ----- | ------------ | ---- | ----- | ----------- | ----- | ---- | ----------- | ------ | ----- | ---- | ------- | ----- | ----- | ---- | 
|                                                                                                                                             |                                                                        | Three Months                                    |                                                   |       | Three Months |      |       | Nine Months |       |      | Nine Months |       
|                                                                                                                                             |                                                                        | Ended                                           |                                                   |       | Ended        |      |       | Ended       |       |      | Ended       |       
|                                                                                                                                             |                                                                        | October 31,                                     |                                                   |       | October 31,  |      |       | October 31, |       |      | October 31, |       
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             |                                                                        | 2006                                            |                                                   |       | 2005         |      |       | 2006        |       |      | 2005        |       
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             |                                                                        | (Dollars in millions, except per share amounts) |                                                  
|Net sales                                                                                                                                    |                                                                        | $                                               | 589.5                                             |       |              | $    | 604.0 |             |       | $    | 1,745.7     |        |       | $    | 1,749.2 |      
|Cost of goods sold                                                                                                                           |                                                                        |                                                 | 536.1                                             |       |              |      | 548.7 |             |       |      | 1,582.9     |        |       |      | 1,600.5 |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Gross profit                                                           |                                                 |                                                   | 53.4  |              |      |       | 55.3        |       |      |             | 162.8  |       |      |         | 148.7 |      
|Marketing, general, and administrative                                                                                                       |                                                                        |                                                 | 35.4                                              |       |              |      | 37.5  |             |       |      | 118.9       |        |       |      | 123.0   |      
|Asset impairments and other restructuring charges                                                                                            |                                                                        |                                                 | 41.5                                              |       |              |      | 3.8   |             |       |      | 48.1        |        |       |      | 37.6    |      
|Other (income) expense, net                                                                                                                  |                                                                        |                                                 | 4.1                                               |       |              |      | (2.8  | )           |       |      | 5.2         |        |       |      | 6.8     |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Earnings (loss) from operations                                        |                                                 |                                                   | (27.6 | )            |      |       | 16.8        |       |      |             | (9.4   | )     |      |         | (18.7 | )    
|Interest expense, net                                                                                                                        |                                                                        |                                                 | 19.4                                              |       |              |      | 18.1  |             |       |      | 56.8        |        |       |      | 49.2    |      
|Other non-operating expense                                                                                                                  |                                                                        |                                                 |                                                  |       |              |      | 0.2   |             |       |      |            |        |       |      | 0.6     |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Loss from continuing operations before taxes and minority
    interest |                                                 |                                                   | (47.0 | )            |      |       | (1.5        | )     |      |             | (66.2  | )     |      |         | (68.5 | )    
|Income tax expense                                                                                                                           |                                                                        |                                                 | 9.5                                               |       |              |      | 10.2  |             |       |      | 30.4        |        |       |      | 18.8    |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Loss from continuing operations before minority interest               |                                                 |                                                   | (56.5 | )            |      |       | (11.7       | )     |      |             | (96.6  | )     |      |         | (87.3 | )    
|Minority interest                                                                                                                            |                                                                        |                                                 | 3.1                                               |       |              |      | 2.4   |             |       |      | 7.5         |        |       |      | 7.5     |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Loss from continuing operations                                        |                                                 |                                                   | (59.6 | )            |      |       | (14.1       | )     |      |             | (104.1 | )     |      |         | (94.8 | )    
|Income from discontinued operations, net of tax of $0.4 and $0.8
    for the three and nine months ending October 31, 2005,
    respectively |                                                                        |                                                 |                                                  |       |              |      | 0.8   |             |       |      |            |        |       |      | 3.5     |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             | Net loss                                                               |                                                 | $                                                 | (59.6 | )            |      | $     | (13.3       | )     |      | $           | (104.1 | )     |      | $       | (91.3 | )    
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|Loss per common share data                                                                                                                   |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |        |       |      |         |      
|Basic and diluted:                                                                                                                           |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |        |       |      |         |      
|                                                                                                                                             | Loss from continuing operations                                        |                                                 | $                                                 | (1.55 | )            |      | $     | (0.37       | )     |      | $           | (2.72  | )     |      | $       | (2.50 | )    
|                                                                                                                                             | Income from discontinued operations                                    |                                                 |                                                   |      |              |      |       | 0.02        |       |      |             |       |       |      |         | 0.09  |      
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             |                                                                        | Net loss                                        |                                                   | $     | (1.55        | )    |       | $           | (0.35 | )    |             | $      | (2.72 | )    |         | $     | (2.41 | )   
|                                                                                                                                             |                                                                        |                                                 |                                                   |       |              |      |       |             |       |      |             |       
|                                                                                                                                             |                                                                        |                                                 | Weighted average shares outstanding (in millions) |       |              | 38.4 |       |             |       | 38.0 |             |        |       | 38.3 |         |       |       | 37.9 | 



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                        |                                                                                                                      |                                                                                                                                                |       |        |             |  |       |        |         | 
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | ----- | ------ | ----------- |  | ----- | ------ | ------- | 
|                                        |                                                                                                                      | October 31,                                                                                                                                    |       |        | January 31, | 
|                                        |                                                                                                                      | 2006                                                                                                                                           |       |        | 2006        | 
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | (Dollars in millions)                                                                                                                          |      
|ASSETS                                 
|Current assets:                         |                                                                                                                      |                                                                                                                                                |       |        |             |  |       |       
|                                        | Cash and cash equivalents                                                                                            |                                                                                                                                                | $     | 59.7   |             |  | $     | 42.5   |        
|                                        | Receivables                                                                                                          |                                                                                                                                                |       | 296.1  |             |  |       | 255.6  |        
|                                        | Other receivables                                                                                                    |                                                                                                                                                |       | 40.8   |             |  |       | 101.0  |        
|                                        | Inventories                                                                                                          |                                                                                                                                                |       | 199.3  |             |  |       | 179.9  |        
|                                        | Prepaid expenses and other current assets                                                                            |                                                                                                                                                |       | 17.3   |             |  |       | 23.5   |        
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | Total current assets                                                                                                                           |       |        | 613.2       |  |       |        | 602.5   | 
|Property, plant, and equipment, net     |                                                                                                                      |                                                                                                                                                | 697.4 |        |             |  | 758.1 |       
|Goodwill                                |                                                                                                                      |                                                                                                                                                | 206.2 |        |             |  | 197.8 |       
|Intangible assets, net                  |                                                                                                                      |                                                                                                                                                | 173.6 |        |             |  | 187.7 |       
|Other assets                            |                                                                                                                      |                                                                                                                                                | 48.3  |        |             |  | 53.1  |       
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | Total assets                                                                                                                                   |       | $      | 1,738.7     |  |       | $      | 1,799.2 | 
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                       
|LIABILITIES AND STOCKHOLDERS EQUITY   
|Current liabilities:                    |                                                                                                                      |                                                                                                                                                |       |        |             |  |       |       
|                                        | Bank borrowings and other notes                                                                                      |                                                                                                                                                | $     | 24.3   |             |  | $     | 25.5   |        
|                                        | Current portion of long-term debt                                                                                    |                                                                                                                                                |       | 9.2    |             |  |       | 19.2   |        
|                                        | Accounts payable and accrued liabilities                                                                             |                                                                                                                                                |       | 402.8  |             |  |       | 367.8  |        
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | Total current liabilities                                                                                                                      |       |        | 436.3       |  |       |        | 412.5   | 
|Long-term debt, net of current portion  |                                                                                                                      |                                                                                                                                                | 667.0 |        |             |  | 684.3 |       
|Deferred tax liabilities                |                                                                                                                      |                                                                                                                                                | 66.6  |        |             |  | 62.7  |       
|Pension and other long-term liabilities |                                                                                                                      |                                                                                                                                                | 409.4 |        |             |  | 409.2 |       
|Minority interest                       |                                                                                                                      |                                                                                                                                                | 53.3  |        |             |  | 47.2  |       
|Commitments and contingencies           |                                                                                                                      |                                                                                                                                                |      |        |             |  |      |       
|Stockholders equity:                   |                                                                                                                      |                                                                                                                                                |       |        |             |  |       |       
|                                        | Preferred stock, 1,000,000 shares authorized, none issued
    or outstanding at October 31, 2006 or January 31, 2006 |                                                                                                                                                |       |       |             |  |       |       |        
|                                        | Common stock, par value $0.01 per share:                                                                             |                                                                                                                                                |       |        |             |  |       |        |        
|                                        |                                                                                                                      | 100,000,000 shares authorized; 38,468,213 and 37,991,269
    issued and outstanding at October 31, 2006 and
    January 31, 2006, respectively |       |        | 0.4         |  |       |        | 0.4     | 
|                                        | Additional paid in capital                                                                                           |                                                                                                                                                |       | 677.9  |             |  |       | 675.9  |        
|                                        | Accumulated deficit                                                                                                  |                                                                                                                                                |       | (670.6 | )           |  |       | (566.3 | )      
|                                        | Accumulated other comprehensive income                                                                               |                                                                                                                                                |       | 98.4   |             |  |       | 73.3   |        
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | Total stockholders equity                                                                                                                     |       |        | 106.1       |  |       |        | 183.3   | 
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 
|                                        |                                                                                                                      | Total liabilities and stockholders equity                                                                                                     |       | $      | 1,738.7     |  |       | $      | 1,799.2 | 
|                                        |                                                                                                                      |                                                                                                                                                |       |        |             | 



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                               |                                                                                      |                                          |                                                  |       |             |       |       |       |       |       |  
|-------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------- | ------------------------------------------------ | ----- | ----------- | ----- | ----- | ----- | ----- | ----- | -
|                                                                                                               |                                                                                      | Nine Months                              |                                                  |       | Nine Months |      
|                                                                                                               |                                                                                      | Ended                                    |                                                  |       | Ended       |      
|                                                                                                               |                                                                                      | October 31,                              |                                                  |       | October 31, |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               |                                                                                      | 2006                                     |                                                  |       | 2005        |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               |                                                                                      | (Unaudited)                              |                                                 
|                                                                                                               |                                                                                      | (Dollars in millions)                    |                                                 
|Cash flows from operating activities:                                                                          |                                                                                      |                                          |                                                  |       |             |       |       |      
|Loss from continuing operations                                                                                |                                                                                      | $                                        | (104.1                                           | )     |             | $     | (94.8 | )    
|Adjustments to reconcile net loss from operations to net cash
    provided by (used for) operating activities: |                                                                                      |                                          |                                                  |       |             |       |       |      
|                                                                                                               | Depreciation and amortization                                                        |                                          |                                                  | 99.3  |             |       |       | 126.2 |      
|                                                                                                               | Interest income from fair value adjustment of Series A and
    Series B warrants     |                                          |                                                  |      |             |       |       | (0.5  | )    
|                                                                                                               | Change in deferred income taxes                                                      |                                          |                                                  | 11.4  |             |       |       | (7.3  | )    
|                                                                                                               | Asset impairments                                                                    |                                          |                                                  | 39.7  |             |       |       | 32.6  |      
|                                                                                                               | Minority interest                                                                    |                                          |                                                  | 7.7   |             |       |       | 8.1   |      
|                                                                                                               | Equity compensation expense                                                          |                                          |                                                  | 2.0   |             |       |       | 4.9   |      
|                                                                                                               | Loss (gain) on sale of assets and businesses                                         |                                          |                                                  | 3.4   |             |       |       | (1.3  | )    
|                                                                                                               | Amortization of deferred financing fees                                              |                                          |                                                  | 4.3   |             |       |       | 4.8   |      
|                                                                                                               | Changes in operating assets and liabilities that increase
    (decrease) cash flows: |                                          |                                                  |       |             |       |       |       |      
|                                                                                                               |                                                                                      | Receivables                              |                                                  |       | (45.3       | )     |       |       | (63.1 | )    
|                                                                                                               |                                                                                      | Other receivables                        |                                                  |       | 60.1        |       |       |       | (41.7 | )    
|                                                                                                               |                                                                                      | Inventories                              |                                                  |       | (20.3       | )     |       |       | 16.0  |      
|                                                                                                               |                                                                                      | Prepaid expenses and other               |                                                  |       | 5.0         |       |       |       | (3.3  | )    
|                                                                                                               |                                                                                      | Accounts payable and accrued liabilities |                                                  |       | 20.7        |       |       |       | 12.7  |      
|                                                                                                               | Payments related to Chapter 11 Filings                                               |                                          |                                                  |      |             |       |       | (0.1  | )    
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               |                                                                                      |                                          | Cash provided by (used for) operating activities |       |             | 83.9  |       |       |       | (6.8  | )
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|Cash flows from investing activities:                                                                          |                                                                                      |                                          |                                                  |       |             |       |       |      
|                                                                                                               | Purchase of property, plant, equipment, and tooling                                  |                                          |                                                  | (50.6 | )           |       |       | (95.6 | )    
|                                                                                                               | Proceeds from sale of assets                                                         |                                          |                                                  | 17.6  |             |       |       | 18.5  |      
|                                                                                                               | Capital contributed by minority shareholders                                         |                                          |                                                  | 0.4   |             |       |       |      |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               |                                                                                      |                                          | Cash used for investing activities               |       |             | (32.6 | )     |       |       | (77.1 | )
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|Cash flows from financing activities:                                                                          |                                                                                      |                                          |                                                  |       |             |       |       |      
|                                                                                                               | Changes in bank borrowings and credit facilities                                     |                                          |                                                  | (2.5  | )           |       |       | 23.9  |      
|                                                                                                               | Redemption of Term Loan B, net of related fees                                       |                                          |                                                  |      |             |       |       | (73.8 | )    
|                                                                                                               | Proceeds from Term Loan C                                                            |                                          |                                                  |      |             |       |       | 150.0 |      
|                                                                                                               | Bank finance fees paid                                                               |                                          |                                                  | (2.9  | )           |       |       |      |      
|                                                                                                               | Borrowing (repayment) of long-term debt                                              |                                          |                                                  | (28.3 | )           |       |       | 33.7  |      
|                                                                                                               | Dividends paid to minority shareholders                                              |                                          |                                                  | (1.8  | )           |       |       |      |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               |                                                                                      |                                          | Cash (used for) provided by financing activities |       |             | (35.5 | )     |       |       | 133.8 |  
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|Cash flows of discontinued operations (revised see Note 12):                                                   |                                                                                      |                                          |                                                  |       |             |       |       |      
|                                                                                                               | Net cash used for operating activities                                               |                                          |                                                  |      |             |       |       | 3.2   |      
|                                                                                                               | Net cash used for investing activities                                               |                                          |                                                  |      |             |       |       | (0.7  | )    
|                                                                                                               | Net cash provided by financing activities                                            |                                          |                                                  |      |             |       |       |      |      
|Effect of exchange rate changes on cash and cash equivalents                                                   |                                                                                      |                                          | 1.4                                              |       |             |       | (0.7  | )    
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|                                                                                                               | Increase in cash and cash equivalents                                                |                                          |                                                  | 17.2  |             |       |       | 51.7  |      
|Cash and cash equivalents at beginning of period                                                               |                                                                                      |                                          | 42.5                                             |       |             |       | 34.9  |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|Cash and cash equivalents at end of period                                                                     |                                                                                      | $                                        | 59.7                                             |       |             | $     | 86.6  |      
|                                                                                                               |                                                                                      |                                          |                                                  |       |             |      
|Supplemental data:                                                                                             |                                                                                      |                                          |                                                  |       |             |       |       |      
|                                                                                                               | Cash paid for interest                                                               |                                          | $                                                | 49.4  |             |       | $     | 37.5  |      
|                                                                                                               | Cash paid for income taxes                                                           |                                          | $                                                | 14.9  |             |       | $     | 18.3  |      



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(DEFICIT)


(Unaudited)


|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |   |       |       |   |   |       |        |        |  
|---------------------------------------------------------------------------------- | ---------------------------------- | ------------------------------------------- | ---------- | --- | ----- | - | ------- | -------- | - | ------------ | ----------- | - | ------------- | ------ | ------ | ------ | ----- | - | ----- | ----- | - | - | ----- | ------ | ------ | -
|                                                                                   |                                    |                                             |            |     |       |   |         | Retained |   |              | Accumulated |   |               |       
|                                                                                   |                                    |                                             |            |     |       |   |         | Earnings |   |              | Other       |   |               |       
|                                                                                   |                                    |                                             |            | Par |       |   | Paid in |          |   | (Accumulated |             |   | Comprehensive |        |        |       
|                                                                                   |                                    | Shares                                      |            |     | Value |   |         | Capital  |   |              | Deficit)    |   |               | Income |        |        | Total |  
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|                                                                                   |                                    | (Dollars in millions, except share amounts) |           
|Balance at January 31, 2006                                                        |                                    |                                             | 37,991,269 |     |       | $ | 0.4     |          |   | $            | 675.9       |   |               | $      | (566.3 | )      |       | $ | 73.3  |       |   | $ | 183.3 |       
|                                                                                   | Preferred stock dividends declared |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        | (0.2   | )     |   |       |      |   |   |       | (0.2   | )     
|Comprehensive income:                                                              |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |   |       |       |   |   |       |       
|                                                                                   | Net loss                           |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        | (104.1 | )     |   |       |      |   |   |       | (104.1 | )     
|                                                                                   | Currency translation adjustment    |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        |       |       |   |       | 28.8  |   |   |       | 28.8   |       
|                                                                                   | Unrealized loss on derivatives     |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        |       |       |   |       | (3.7  | ) |   |       | (3.7   | )     
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|                                                                                   |                                    | Total comprehensive income                  |            |     |      |   |         |          |  |              |             |   |              |        |        |        |      |   |       |       |  |   |       |        | (79.0  | )
|Shares issued for vested RSUs                                                      |                                    |                                             | 471,871    |     |       |   |        |          |   |              |            |   |               |        |       |        |       |   |      |       |   |   |      |       
|Shares of redeemable preferred stock of subsidiary converted
    into common stock |                                    |                                             | 5,073      |     |       |   |        |          |   |              |            |   |               |        |       |        |       |   |      |       |   |   |      |       
|Equity compensation expense                                                        |                                    |                                             |           |     |       |   |        |          |   |              | 2.0         |   |               |        |       |        |       |   |      |       |   |   | 2.0   |       
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|Balance at October 31, 2006                                                        |                                    |                                             | 38,468,213 |     |       | $ | 0.4     |          |   | $            | 677.9       |   |               | $      | (670.6 | )      |       | $ | 98.4  |       |   | $ | 106.1 |       
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|Balance at January 31, 2005                                                        |                                    |                                             | 37,865,962 |     |       | $ | 0.4     |          |   | $            | 670.6       |   |               | $      | (108.8 | )      |       | $ | 139.1 |       |   | $ | 701.3 |       
|Comprehensive income:                                                              |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |   |       |       |   |   |       |       
|                                                                                   | Net loss                           |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        | (91.3  | )     |   |       |      |   |   |       | (91.3  | )     
|                                                                                   | Currency translation adjustment    |                                             |            |    |       |   |         |         |   |              |             |  |               |        |        |       |       |   |       | (65.3 | ) |   |       | (65.3  | )     
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|                                                                                   |                                    | Total comprehensive income                  |            |     |      |   |         |          |  |              |             |   |              |        |        |        |      |   |       |       |  |   |       |        | (156.6 | )
|Shares issued for vested RSUs                                                      |                                    |                                             | 116,921    |     |       |   |        |          |   |              |            |   |               |        |       |        |       |   |      |       |   |   |      |       
|Equity compensation expense                                                        |                                    |                                             |           |     |       |   |        |          |   |              | 4.9         |   |               |        |       |        |       |   |      |       |   |   | 4.9   |       
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  
|Balance at October 31, 2005                                                        |                                    |                                             | 37,982,883 |     |       | $ | 0.4     |          |   | $            | 675.5       |   |               | $      | (200.1 | )      |       | $ | 73.8  |       |   | $ | 549.6 |       
|                                                                                   |                                    |                                             |            |     |       |   |         |          |   |              |             |   |               |        |        |        |       |  



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Three and Nine Months Ended October 31, 2006 and 2005


(Unaudited)


(Dollars in millions, unless otherwise stated)




|        |                        
|------- | -----------------------
|Note 1. | Description of Business

10-K




| |                        
| | -----------------------
| | Description of Business







|        |                      
|------- | ---------------------
|Note 2. | Basis of Presentation









|        |                         
|------- | ------------------------
|Note 3. | Stock-Based Compensation





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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














|                                |           |                                                 |           |          |                |   |       |       |       | 
|------------------------------- | --------- | ----------------------------------------------- | --------- | -------- | -------------- | - | ----- | ----- | ----- | 
|                                |           |                                                 |           | Weighted |               
|                                |           | Number of                                       |           |          | Average        |  
|                                |           | Shares                                          |           |          | Exercise Price |  
|                                |           |                                                 |           |          |                |  
|Outstanding at January 31, 2006 |           |                                                 | 1,749,765 |          |                | $ | 13.54 |      
|                                | Granted   |                                                 |           |         |                |   |       |      |      
|                                | Exercised |                                                 |           |         |                |   |       |      |      
|                                | Canceled  |                                                 |           | (311,925 | )              |   |       | 13.74 |      
|                                |           |                                                 |           |          |                |  
|                                |           | Outstanding and exercisable at October 31, 2006 |           |          | 1,437,840      |   |       | $     | 13.50 | 
|                                |           |                                                 |           |          |                |  

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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                  |             |              |   |       |             |  |   |       |  
|--------------------------------- | ----------- | ------------ | - | ----- | ----------- |  | - | ----- | -
|                                  |             | Three Months |   |       | Nine Months | 
|                                  |             | Ended        |   |       | Ended       | 
|                                  |             | October 31,  |   |       | October 31, | 
|                                  |             | 2005         |   |       | 2005        | 
|                                  |             |              |   |       |             | 
|Net loss:                         |             |              |   |       |             |  |   |      
|                                  | As reported |              | $ | (13.3 | )           |  | $ | (91.3 | )
|                                  | Pro forma   |              |   | (13.8 | )           |  |   | (93.2 | )
|Basic and diluted loss per share: |             |              |   |       |             |  |   |      
|                                  | As reported |              | $ | (0.35 | )           |  | $ | (2.41 | )
|                                  | Pro forma   |              |   | (0.36 | )           |  |   | (2.46 | )



|                              |           |                                 |           |          |            |   |       |       |      | 
|----------------------------- | --------- | ------------------------------- | --------- | -------- | ---------- | - | ----- | ----- | ---- | 
|                              |           |                                 |           | Weighted |           
|                              |           |                                 |           | Average  |           
|                              |           | Number of                       |           |          | Grant Date |  
|                              |           | Shares                          |           |          | Fair Value |  
|                              |           |                                 |           |          |            |  
|Nonvested at January 31, 2006 |           |                                 | 1,348,010 |          |            | $ | 12.23 |      
|                              | Granted   |                                 |           | 611,000  |            |   |       | 2.66  |     
|                              | Exercised |                                 |           | (359,159 | )          |   |       | 12.26 |     
|                              | Forfeited |                                 |           | (217,973 | )          |   |       | 12.31 |     
|                              |           |                                 |           |          |            |  
|                              |           | Outstanding at October 31, 2006 |           |          | 1,381,878  |   |       | $     | 7.97 | 
|                              |           |                                 |           |          |            |  







|        |            
|------- | -----------
|Note 4. | Inventories



|                         |       |             |      |       |             |   |      |       | 
|------------------------ | ----- | ----------- | ---- | ----- | ----------- | - | ---- | ----- | 
|                         |       | October 31, |      |       | January 31, |  
|                         |       | 2006        |      |       | 2006        |  
|                         |       |             |      |       |             |  
|Raw materials            |       | $           | 44.4 |       |             | $ | 41.5 |      
|Work-in-process          |       |             | 44.7 |       |             |   | 38.8 |      
|Finished goods           |       |             | 71.5 |       |             |   | 61.5 |      
|Spare parts and supplies |       |             | 38.7 |       |             |   | 38.1 |      
|                         |       |             |      |       |             |  
|                         | Total |             | $    | 199.3 |             |   | $    | 179.9 | 
|                         |       |             |      |       |             |  



|        |                     
|------- | --------------------
|Note 5. | Assets Held for Sale



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|        |                        
|------- | -----------------------
|Note 6. | Discontinued Operations









|                                    |            |              |      |     |             |   |      |     | 
|----------------------------------- | ---------- | ------------ | ---- | --- | ----------- | - | ---- | --- | 
|                                    |            | Three Months |      |     | Nine Months |  
|                                    |            | Ended        |      |     | Ended       |  
|                                    |            | October 31,  |      |     | October 31, |  
|                                    |            | 2005         |      |     | 2005        |  
|                                    |            |              |      |     |             |  
|Net sales                           |            | $            | 28.2 |     |             | $ | 85.3 |    
|Earnings before income tax expense, |            | $            | 1.2  |     |             | $ | 4.3  |    
|Income tax expense                  |            |              | 0.4  |     |             |   | 0.8  |    
|                                    |            |              |      |     |             |  
|                                    | Net income |              | $    | 0.8 |             |   | $    | 3.5 | 
|                                    |            |              |      |     |             |  



|        |                                                 
|------- | ------------------------------------------------
|Note 7. | Bank Borrowings, Other Notes, and Long-Term Debt



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                           |                |             |       |       |             |   |       |       | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------- | ----------- | ----- | ----- | ----------- | - | ----- | ----- | 
|                                                                                                                                                           |                | October 31, |       |       | January 31, |  
|                                                                                                                                                           |                | 2006        |       |       | 2006        |  
|                                                                                                                                                           |                |             |       |       |             |  
|Various foreign bank and government loans, weighted average
    interest rates of 5.8% and 5.6% at October 31, 2006 and
    January 31, 2006, respectively |                | $           | 7.8   |       |             | $ | 18.4  |      
|Term Loan B maturing 2009, weighted average interest rate
    of 9.0% and 7.7% at October 31, 2006 and January 31,
    2006, respectively                  |                |             | 328.9 |       |             |   | 332.4 |      
|Term Loan C maturing 2010, weighted average interest rate
    of 11.5% and 9.9% at October 31, 2006 and January 31,
    2006, respectively                 |                |             | 150.0 |       |             |   | 150.0 |      
|101/2% Senior
    Notes due 2010, net of discount of $0.4 million and
    $0.8 million at October 31, 2006 and January 31,
    2006, respectively          |                |             | 162.1 |       |             |   | 161.7 |      
|Mortgage note payable maturing June 3, 2008                                                                                                                |                |             | 21.9  |       |             |   | 22.0  |      
|Capital lease obligations                                                                                                                                  |                |             | 5.5   |       |             |   | 19.0  |      
|                                                                                                                                                           |                |             |       |       |             |  
|                                                                                                                                                           |                |             | 676.2 |       |             |   | 703.5 |      
|Less current portion of long-term debt                                                                                                                     |                |             | 9.2   |       |             |   | 19.2  |      
|                                                                                                                                                           |                |             |       |       |             |  
|                                                                                                                                                           | Long-term debt |             | $     | 667.0 |             |   | $     | 684.3 | 
|                                                                                                                                                           |                |             |       |       |             |  



| |                
| | ---------------
| | Credit Facility









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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |             
| | ------------
| | Senior Notes

1 2 1 2










| |                                  
| | ---------------------------------
| | Early Repayment of Long-Term Debt





| |                
| | ---------------
| | Other Financing





|        |                                                                  
|------- | -----------------------------------------------------------------
|Note 8. | Pension Plans and Postretirement Benefits Other Than
    Pensions



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                       |  |                                |      |               |                |   |         |          |  |   |      |   |  |      |     |  |      |   |      |   |  |   |     | 
|-------------------------------------- |  | ------------------------------ | ---- | ------------- | -------------- | - | ------- | -------- |  | - | ---- | - |  | ---- | --- |  | ---- | - | ---- | - |  | - | --- | 
|                                       |  | Three Months Ended October 31, |     
|                                       |  |                                |     
|                                       |  |                                |      | International |               
|                                       |  | US Plans                       |      |               | Plans          |  
|                                       |  |                                |      |               |                |  
|                                       |  | Pension                        |      |               |                |   | Pension |         
|                                       |  | Benefits                       |      |               | Other Benefits |   |         | Benefits | 
|                                       |  |                                |      |               |                |   |         |          | 
|                                       |  | 2006                           |      |               | 2005           |   |         | 2006     |  |   | 2005 |   |  | 2006 |     |  | 2005 |  
|                                       |  |                                |      |               |                |   |         |          |  |   |      |   |  |      |     |  |      |  
|Service cost                           |  | $                              | 0.2  |               |                | $ | 0.3     |          |  | $ |     |   |  | $    |    |  |      | $ | 0.3  |   |  | $ | 0.3 | 
|Interest cost                          |  |                                | 2.7  |               |                |   | 2.6     |          |  |   | 2.7  |   |  |      | 2.7 |  |      |   | 1.4  |   |  |   | 1.9 | 
|Expected return on plan assets         |  |                                | (2.6 | )             |                |   | (2.4    | )        |  |   |     |   |  |      |    |  |      |   | (0.1 | ) |  |   |    | 
|Amortization of net loss               |  |                                |     |               |                |   |        |          |  |   | (0.1 | ) |  |      |    |  |      |   |     |   |  |   | 0.1 | 
|Special termination benefit recognized |  |                                | 0.1  |               |                |   |        |          |  |   |     |   |  |      |    |  |      |   |     |   |  |   |    | 
|                                       |  |                                |      |               |                |   |         |          |  |   |      |   |  |      |     |  |      |  
|Net periodic benefit cost              |  | $                              | 0.4  |               |                | $ | 0.5     |          |  | $ | 2.6  |   |  | $    | 2.7 |  |      | $ | 1.6  |   |  | $ | 2.3 | 
|                                       |  |                                |      |               |                |   |         |          |  |   |      |   |  |      |     |  |      |  

|                                       |  |                               |      |   |      |   |      |      |  |   |      |   |  |      |     |  |      |   |      |   |  |   |     | 
|-------------------------------------- |  | ----------------------------- | ---- | - | ---- | - | ---- | ---- |  | - | ---- | - |  | ---- | --- |  | ---- | - | ---- | - |  | - | --- | 
|                                       |  | Nine Months Ended October 31, |     
|                                       |  |                               |     
|                                       |  | 2006                          |      |   | 2005 |   |      | 2006 |  |   | 2005 |   |  | 2006 |     |  | 2005 |  
|                                       |  |                               |      |   |      |   |      |      |  |   |      |   |  |      |     |  |      |  
|Service cost                           |  | $                             | 0.7  |   |      | $ | 0.8  |      |  | $ |     |   |  | $    | 0.1 |  |      | $ | 0.8  |   |  | $ | 0.8 | 
|Interest cost                          |  |                               | 8.3  |   |      |   | 8.0  |      |  |   | 8.0  |   |  |      | 8.0 |  |      |   | 4.4  |   |  |   | 5.9 | 
|Expected return on plan assets         |  |                               | (8.0 | ) |      |   | (7.1 | )    |  |   |     |   |  |      |    |  |      |   | (0.4 | ) |  |   | 0.1 | 
|Amortization of net loss               |  |                               |     |   |      |   |     |      |  |   | (0.1 | ) |  |      |    |  |      |   | 0.1  |   |  |   | 0.3 | 
|Special termination benefit recognized |  |                               | 0.1  |   |      |   |     |      |  |   |     |   |  |      |    |  |      |   |     |   |  |   |    | 
|                                       |  |                               |      |   |      |   |      |      |  |   |      |   |  |      |     |  |      |  
|Net periodic benefit cost              |  | $                             | 1.1  |   |      | $ | 1.7  |      |  | $ | 7.9  |   |  | $    | 8.1 |  |      | $ | 4.9  |   |  | $ | 7.1 | 
|                                       |  |                               |      |   |      |   |      |      |  |   |      |   |  |      |     |  |      |  







|        |                                                  
|------- | -------------------------------------------------
|Note 9. | Asset Impairments and Other Restructuring Charges



|                                                              |       |                                     |     |     |            |   |      |       |  |   |       |     |  |   |      |      | 
|------------------------------------------------------------- | ----- | ----------------------------------- | --- | --- | ---------- | - | ---- | ----- |  | - | ----- | --- |  | - | ---- | ---- | 
|                                                              |       | Three Months Ended October 31, 2006 |    
|                                                              |       |                                     |    
|                                                              |       | Automotive                          |     |     |           
|                                                              |       | Wheels                              |     |     | Components |   |      | Other |  |   | Total |    
|                                                              |       |                                     |     |     |            |   |      |       |  |   |       |    
|Facility closure costs                                        |       | $                                   | 0.4 |     |            | $ |     |       |  | $ |      |     |  | $ | 0.4  |     
|Impairment of facility, machinery, equipment, and intangibles |       |                                     |    |     |            |   | 39.0 |       |  |   |      |     |  |   | 39.0 |     
|Severance and other restructuring costs                       |       |                                     | 1.5 |     |            |   | 0.5  |       |  |   | 0.1   |     |  |   | 2.1  |     
|                                                              |       |                                     |     |     |            |   |      |       |  |   |       |    
|                                                              | Total |                                     | $   | 1.9 |            |   | $    | 39.5  |  |   | $     | 0.1 |  |   | $    | 41.5 | 
|                                                              |       |                                     |     |     |            |   |      |       |  |   |       |    

12



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                              |       |                                     |     |     |            |   |     |       |  |       |   |   |  |   |     |     | 
|------------------------------------------------------------- | ----- | ----------------------------------- | --- | --- | ---------- | - | --- | ----- |  | ----- | - | - |  | - | --- | --- | 
|                                                              |       | Three Months Ended October 31, 2005 |    
|                                                              |       |                                     |    
|                                                              |       | Automotive                          |     |     |           
|                                                              |       | Wheels                              |     |     | Components |   |     | Other |  | Total |  
|                                                              |       |                                     |     |     |            |   |     |       |  |       |  
|Facility closure costs                                        |       | $                                   | 1.5 |     |            | $ |    |       |  | $     |  |   |  | $ | 1.5 |    
|Impairment of facility, machinery, equipment, and intangibles |       |                                     | 1.1 |     |            |   | 0.7 |       |  |       |  |   |  |   | 1.8 |    
|Severance and other restructuring costs                       |       |                                     | 0.5 |     |            |   |    |       |  |       |  |   |  |   | 0.5 |    
|                                                              |       |                                     |     |     |            |   |     |       |  |       |   |  
|                                                              | Total |                                     | $   | 3.1 |            |   | $   | 0.7   |  |       | $ |  |  |   | $   | 3.8 | 
|                                                              |       |                                     |     |     |            |   |     |       |  |       |   |  

|                                                              |       |                                    |     |     |            |   |      |       |  |   |       |     |  |   |      |      | 
|------------------------------------------------------------- | ----- | ---------------------------------- | --- | --- | ---------- | - | ---- | ----- |  | - | ----- | --- |  | - | ---- | ---- | 
|                                                              |       | Nine Months Ended October 31, 2006 |    
|                                                              |       |                                    |    
|                                                              |       | Automotive                         |     |     |           
|                                                              |       | Wheels                             |     |     | Components |   |      | Other |  |   | Total |    
|                                                              |       |                                    |     |     |            |   |      |       |  |   |       |    
|Facility closure costs                                        |       | $                                  | 1.9 |     |            | $ |     |       |  | $ |      |     |  | $ | 1.9  |     
|Impairment of facility, machinery, equipment, and intangibles |       |                                    | 0.1 |     |            |   | 39.1 |       |  |   | 0.5   |     |  |   | 39.7 |     
|Severance and other restructuring costs                       |       |                                    | 3.1 |     |            |   | 2.6  |       |  |   | 0.8   |     |  |   | 6.5  |     
|                                                              |       |                                    |     |     |            |   |      |       |  |   |       |    
|                                                              | Total |                                    | $   | 5.1 |            |   | $    | 41.7  |  |   | $     | 1.3 |  |   | $    | 48.1 | 
|                                                              |       |                                    |     |     |            |   |      |       |  |   |       |    

|                                                              |       |                                    |     |     |            |   |      |       |  |       |   |   |  |   |      |      | 
|------------------------------------------------------------- | ----- | ---------------------------------- | --- | --- | ---------- | - | ---- | ----- |  | ----- | - | - |  | - | ---- | ---- | 
|                                                              |       | Nine Months Ended October 31, 2005 |    
|                                                              |       |                                    |    
|                                                              |       | Automotive                         |     |     |           
|                                                              |       | Wheels                             |     |     | Components |   |      | Other |  | Total |  
|                                                              |       |                                    |     |     |            |   |      |       |  |       |  
|Facility closure costs                                        |       | $                                  | 2.7 |     |            | $ |     |       |  | $     |  |   |  | $ | 2.7  |     
|Impairment of facility, machinery, equipment, and intangibles |       |                                    | 1.8 |     |            |   | 30.7 |       |  |       |  |   |  |   | 32.5 |     
|Severance and other restructuring costs                       |       |                                    | 2.4 |     |            |   |     |       |  |       |  |   |  |   | 2.4  |     
|                                                              |       |                                    |     |     |            |   |      |       |  |       |   |  
|                                                              | Total |                                    | $   | 6.9 |            |   | $    | 30.7  |  |       | $ |  |  |   | $    | 37.6 | 
|                                                              |       |                                    |     |     |            |   |      |       |  |       |   |  



| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Asset Impairment Losses and Other Restructuring Charges
    for the Three Months Ended October 31, 2006

reduction-in




| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Asset Impairment Losses and Other Restructuring Charges
    for the Three Months Ended October 31, 2005



13



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Asset Impairment Losses and Other Restructuring Charges
    for the Nine Months Ended October 31, 2006

reduction-in




| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Asset Impairment Losses and Other Restructuring Charges
    for the Nine Months Ended October 31, 2005





| |                                           
| | ------------------------------------------
| | Facility Exit Costs and Severance Accruals



|                    |       |              |     |               |               |   |              |          |  |   |              |      |   |   |     |     | 
|------------------- | ----- | ------------ | --- | ------------- | ------------- | - | ------------ | -------- |  | - | ------------ | ---- | - | - | --- | --- | 
|                    |       |              |     | Accrual of    |               |   | Cash         |          |  |  
|                    |       |              |     | Severance and |               |   | Payments and |          |  |  
|                    |       |              |     | Other         |               |   | Effects of   |          |  |  
|                    |       | January 31,  |     |               | Restructuring |   |              | Foreign  |  |   | October 31,  |     
|                    |       | 2006 Accrual |     |               | Charges       |   |              | Currency |  |   | 2006 Accrual |     
|                    |       |              |     |               |               |   |              |          |  |   |              |     
|Facility exit costs |       | $            | 0.1 |               |               | $ | 1.9          |          |  | $ | (0.6         | )    |   | $ | 1.4 |    
|Severance           |       |              | 2.9 |               |               |   | 6.5          |          |  |   | (5.0         | )    |   |   | 4.4 |    
|                    |       |              |     |               |               |   |              |          |  |   |              |     
|                    | Total |              | $   | 3.0           |               |   | $            | 8.4      |  |   | $            | (5.6 | ) |   | $   | 5.8 | 
|                    |       |              |     |               |               |   |              |          |  |   |              |     



|         |                                    
|-------- | -----------------------------------
|Note 10. | Weighted Average Shares Outstanding



14



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                          |                                             |                   |        |        |      |  |        |        | 
|----------------------------------------- | ------------------------------------------- | ----------------- | ------ | ------ | ---- |  | ------ | ------ | 
|                                          |                                             | Three Months      |       
|                                          |                                             | Ended October 31, |       
|                                          |                                             |                   |       
|                                          |                                             | 2006              |        |        | 2005 | 
|                                          |                                             |                   |        |        |      | 
|Basic weighted average shares outstanding |                                             |                   | 38,405 |        |      |  | 37,983 |       
|Dilutive effect of options and warrants   |                                             |                   |       |        |      |  |       |       
|                                          |                                             |                   |        |        |      | 
|                                          | Diluted weighted average shares outstanding |                   |        | 38,405 |      |  |        | 37,983 | 
|                                          |                                             |                   |        |        |      | 

|                                          |                                             |                   |        |        |      |  |        |        | 
|----------------------------------------- | ------------------------------------------- | ----------------- | ------ | ------ | ---- |  | ------ | ------ | 
|                                          |                                             | Nine Months       |       
|                                          |                                             | Ended October 31, |       
|                                          |                                             |                   |       
|                                          |                                             | 2006              |        |        | 2005 | 
|                                          |                                             |                   |        |        |      | 
|Basic weighted average shares outstanding |                                             |                   | 38,251 |        |      |  | 37,928 |       
|Dilutive effect of options and warrants   |                                             |                   |       |        |      |  |       |       
|                                          |                                             |                   |        |        |      | 
|                                          | Diluted weighted average shares outstanding |                   |        | 38,251 |      |  |        | 37,928 | 
|                                          |                                             |                   |        |        |      | 





|         |                
|-------- | ---------------
|Note 11. | Taxes on Income



|                      |  |                                |       |   |         |   |      |    |  |   |         |   |  |   |      | 
|--------------------- |  | ------------------------------ | ----- | - | ------- | - | ---- | -- |  | - | ------- | - |  | - | ---- | 
|                      |  | Three Months Ended October 31, |      
|                      |  |                                |      
|                      |  | 2006                           |       |   | 2005    |  
|                      |  |                                |       |   |         |  
|                      |  | US                             |       |   | Foreign |   |      | US |  |   | Foreign |  
|                      |  |                                |       |   |         |   |      |    |  |   |         |  
|Pre-tax income (loss) |  | $                              | (71.9 | ) |         | $ | 24.9 |    |  | $ | (16.3   | ) |  | $ | 14.8 | 
|Income tax expense    |  |                                | 0.4   |   |         |   | 9.1  |    |  |   | 0.1     |   |  |   | 10.1 | 

|                      |  |                               |        |   |         |   |      |    |  |   |         |   |  |   |      | 
|--------------------- |  | ----------------------------- | ------ | - | ------- | - | ---- | -- |  | - | ------- | - |  | - | ---- | 
|                      |  | Nine Months Ended October 31, |       
|                      |  |                               |       
|                      |  | 2006                          |        |   | 2005    |  
|                      |  |                               |        |   |         |  
|                      |  | US                            |        |   | Foreign |   |      | US |  |   | Foreign |  
|                      |  |                               |        |   |         |   |      |    |  |   |         |  
|Pre-tax income (loss) |  | $                             | (121.7 | ) |         | $ | 55.5 |    |  | $ | (110.4  | ) |  | $ | 41.9 | 
|Income tax expense    |  |                               | 1.3    |   |         |   | 29.1 |    |  |   | 0.7     |   |  |   | 18.1 | 







15



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                               
|-------- | ------------------------------
|Note 12. | Prior Period Accounting Errors









|         |                  
|-------- | -----------------
|Note 13. | Segment Reporting







|                                                  |  |                                     |       |  |            |   |       |       |  |   |       |   |  |   |       |  
|------------------------------------------------- |  | ----------------------------------- | ----- |  | ---------- | - | ----- | ----- |  | - | ----- | - |  | - | ----- | -
|                                                  |  | Three Months Ended October 31, 2006 |      
|                                                  |  |                                     |      
|                                                  |  | Automotive                          |       |  |           
|                                                  |  | Wheels                              |       |  | Components |   |       | Other |  |   | Total |  
|                                                  |  |                                     |       |  |            |   |       |       |  |   |       |  
|Net sales                                         |  | $                                   | 432.6 |  |            | $ | 156.9 |       |  | $ |      |   |  | $ | 589.5 |  
|Asset impairments and other restructuring charges |  |                                     | 1.9   |  |            |   | 39.5  |       |  |   | 0.1   |   |  |   | 41.5  |  
|Earnings (loss) from operations                   |  |                                     | 23.4  |  |            |   | (45.7 | )     |  |   | (5.3  | ) |  |   | (27.6 | )

16



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                  |  |                                     |       |  |            |   |       |       |  |   |       |   |  |   |       | 
|------------------------------------------------- |  | ----------------------------------- | ----- |  | ---------- | - | ----- | ----- |  | - | ----- | - |  | - | ----- | 
|                                                  |  | Three Months Ended October 31, 2005 |      
|                                                  |  |                                     |      
|                                                  |  | Automotive                          |       |  |           
|                                                  |  | Wheels                              |       |  | Components |   |       | Other |  |   | Total |  
|                                                  |  |                                     |       |  |            |   |       |       |  |   |       |  
|Net sales                                         |  | $                                   | 423.3 |  |            | $ | 180.7 |       |  | $ |      |   |  | $ | 604.0 | 
|Asset impairments and other restructuring charges |  |                                     | 3.1   |  |            |   | 0.7   |       |  |   |      |   |  |   | 3.8   | 
|Earnings (loss) from operations                   |  |                                     | 22.2  |  |            |   | (1.7  | )     |  |   | (3.7  | ) |  |   | 16.8  | 

|                                                  |  |                                    |         |  |            |   |       |       |  |   |       |   |  |   |         |  
|------------------------------------------------- |  | ---------------------------------- | ------- |  | ---------- | - | ----- | ----- |  | - | ----- | - |  | - | ------- | -
|                                                  |  | Nine Months Ended October 31, 2006 |        
|                                                  |  |                                    |        
|                                                  |  | Automotive                         |         |  |           
|                                                  |  | Wheels                             |         |  | Components |   |       | Other |  |   | Total |  
|                                                  |  |                                    |         |  |            |   |       |       |  |   |       |  
|Net sales                                         |  | $                                  | 1,255.9 |  |            | $ | 489.8 |       |  | $ |      |   |  | $ | 1,745.7 |  
|Asset impairments and other restructuring charges |  |                                    | 5.1     |  |            |   | 41.7  |       |  |   | 1.3   |   |  |   | 48.1    |  
|Earnings (loss) from operations                   |  |                                    | 52.6    |  |            |   | (46.9 | )     |  |   | (15.1 | ) |  |   | (9.4    | )

|                                                  |  |                                    |         |  |            |   |       |       |  |   |       |   |  |   |         |  
|------------------------------------------------- |  | ---------------------------------- | ------- |  | ---------- | - | ----- | ----- |  | - | ----- | - |  | - | ------- | -
|                                                  |  | Nine Months Ended October 31, 2005 |        
|                                                  |  |                                    |        
|                                                  |  | Automotive                         |         |  |           
|                                                  |  | Wheels                             |         |  | Components |   |       | Other |  |   | Total |  
|                                                  |  |                                    |         |  |            |   |       |       |  |   |       |  
|Net sales                                         |  | $                                  | 1,215.9 |  |            | $ | 533.3 |       |  | $ |      |   |  | $ | 1,749.2 |  
|Asset impairments and other restructuring charges |  |                                    | 6.9     |  |            |   | 30.7  |       |  |   |      |   |  |   | 37.6    |  
|Earnings (loss) from operations                   |  |                                    | 45.6    |  |            |   | (43.3 | )     |  |   | (21.0 | ) |  |   | (18.7   | )

|             |  |                        |         |  |            |   |       |       |  |        |  |         
|------------ |  | ---------------------- | ------- |  | ---------- | - | ----- | ----- |  | ------ |  | --------
|             |  | As of October 31, 2006
|             |  |                       
|             |  | Automotive             |         |  |           
|             |  | Wheels                 |         |  | Components |   |       | Other |  | Total 
|             |  |                        |         |  |            |   |       |       |  |       
|Total assets |  | $                      | 1,339.3 |  |            | $ | 215.8 |       |  | $183.6 |  | $1,738.7

|             |  |                        |         |  |            |   |       |       |  |        |  |         
|------------ |  | ---------------------- | ------- |  | ---------- | - | ----- | ----- |  | ------ |  | --------
|             |  | As of January 31, 2006
|             |  |                       
|             |  | Automotive             |         |  |           
|             |  | Wheels                 |         |  | Components |   |       | Other |  | Total 
|             |  |                        |         |  |            |   |       |       |  |       
|Total assets |  | $                      | 1,247.7 |  |            | $ | 321.5 |       |  | $230.0 |  | $1,799.2



|         |                                                         
|-------- | --------------------------------------------------------
|Note 14. | Minority Interest in Equity of Consolidated Subsidiaries







|                                             |  |             |      |  |             |   |      | 
|-------------------------------------------- |  | ----------- | ---- |  | ----------- | - | ---- | 
|                                             |  | October 31, |      |  | January 31, |  
|                                             |  | 2006        |      |  | 2006        |  
|                                             |  |             |      |  |             |  
|Minority interest in consolidated affiliates |  | $           | 40.9 |  |             | $ | 35.1 | 
|Minority interest in preferred stock         |  |             | 12.4 |  |             |   | 12.1 | 

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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 15.     Condensed
Consolidating Financial Statements








| |                                                
| | -----------------------------------------------
| | Guarantor and Nonguarantor Financial Statements



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


For the Nine Months Ended October 31, 2006


|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |   |        |       |  |   |         |        |  
|------------------------------------------------------------------ | ------------------------------------------------------------------------------------------- | --------------------- | ----- | ------ | ------ | --------- | ---- | ------------ | ------------ | - | ------------ | ----- | - | ------------ | ------- | ----- | ----- | - | ------ | ----- |  | - | ------- | ------ | -
|                                                                   |                                                                                             |                       |       |        |        | Guarantor |      |              | Nonguarantor |   |              |       |   |             
|                                                                   |                                                                                             | Parent                |       |        | Issuer |           |      | Subsidiaries |              |   | Subsidiaries |       |   | Eliminations |         |       | Total |  
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   |                                                                                             | (Dollars in millions) |      
|                                                                   |                                                                                             | (Unaudited)           |      
|Net sales                                                          |                                                                                             | $                     |      |        |        | $         | 0.3  |              |              | $ | 630.8        |       |   | $            | 1,146.8 |       |       | $ | (32.2  | )     |  | $ | 1,745.7 |       
|Cost of goods sold                                                 |                                                                                             |                       |      |        |        |           | 13.7 |              |              |   | 596.7        |       |   |              | 1,004.7 |       |       |   | (32.2  | )     |  |   | 1,582.9 |       
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Gross profit (loss)                                                                         |                       |       |       |        |           |      | (13.4        | )            |   |              | 34.1  |   |              |         | 142.1 |       |   |        |      |  |   |         | 162.8  |  
|Marketing, general, and administrative                             |                                                                                             |                       |      |        |        |           | 2.4  |              |              |   | 52.5         |       |   |              | 64.0    |       |       |   |        |       |  |   | 118.9   |       
|Equity in (earnings) losses of subsidiaries and joint
    ventures |                                                                                             |                       | 104.1 |        |        |           | 50.0 |              |              |   | (4.2         | )     |   |              |        |       |       |   | (149.9 | )     |  |   |        |       
|Asset impairments and other restructuring charges                  |                                                                                             |                       |      |        |        |           | 3.0  |              |              |   | 43.0         |       |   |              | 2.1     |       |       |   |       |       |  |   | 48.1    |       
|Other (income) expense, net                                        |                                                                                             |                       |      |        |        |           | (1.9 | )            |              |   | 4.5          |       |   |              | 1.1     |       |       |   | 1.5    |       |  |   | 5.2     |       
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from operations                                                             |                       |       | (104.1 | )      |           |      | (66.9        | )            |   |              | (61.7 | ) |              |         | 74.9  |       |   |        | 148.4 |  |   |         | (9.4   | )
|Interest expense, net                                              |                                                                                             |                       |      |        |        |           | 36.9 |              |              |   | 1.1          |       |   |              | 18.8    |       |       |   |       |       |  |   | 56.8    |       
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from continuing operations before taxes on
    income and minority interest |                       |       | (104.1 | )      |           |      | (103.8       | )            |   |              | (62.8 | ) |              |         | 56.1  |       |   |        | 148.4 |  |   |         | (66.2  | )
|Income tax expense                                                 |                                                                                             |                       |      |        |        |           | 0.3  |              |              |   | 1.0          |       |   |              | 29.1    |       |       |   |       |       |  |   | 30.4    |       
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from continuing operations before minority
    interest                     |                       |       | (104.1 | )      |           |      | (104.1       | )            |   |              | (63.8 | ) |              |         | 27.0  |       |   |        | 148.4 |  |   |         | (96.6  | )
|Minority interest                                                  |                                                                                             |                       |      |        |        |           |     |              |              |   |             |       |   |              | 7.5     |       |       |   |       |       |  |   | 7.5     |       
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Net income (loss)                                                                           |                       | $     | (104.1 | )      |           | $    | (104.1       | )            |   | $            | (63.8 | ) |              | $       | 19.5  |       |   | $      | 148.4 |  |   | $       | (104.1 | )
|                                                                   |                                                                                             |                       |       |        |        |           |      |              |              |   |              |       |   |              |         |       |       |  

19



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


For the Nine Months Ended October 31, 2005


|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |   |        |       |  |   |         |       |  
|------------------------------------------------------------------ | ------------------------------------------------------------------------------------------- | --------------------- | ---- | ----- | ------ | --------- | ---- | ------------ | ------------ | - | ------------ | ----- | - | ------------ | ------- | ----- | ----- | - | ------ | ----- |  | - | ------- | ----- | -
|                                                                   |                                                                                             |                       |      |       |        | Guarantor |      |              | Nonguarantor |   |              |       |   |             
|                                                                   |                                                                                             | Parent                |      |       | Issuer |           |      | Subsidiaries |              |   | Subsidiaries |       |   | Eliminations |         |       | Total |  
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   |                                                                                             | (Dollars in millions) |     
|                                                                   |                                                                                             | (Unaudited)           |     
|Net sales                                                          |                                                                                             | $                     |     |       |        | $         | 2.5  |              |              | $ | 726.7        |       |   | $            | 1,047.9 |       |       | $ | (27.9  | )     |  | $ | 1,749.2 |      
|Cost of goods sold                                                 |                                                                                             |                       |     |       |        |           | 15.8 |              |              |   | 694.7        |       |   |              | 917.9   |       |       |   | (27.9  | )     |  |   | 1,600.5 |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Gross profit (loss)                                                                         |                       |      |      |        |           |      | (13.3        | )            |   |              | 32.0  |   |              |         | 130.0 |       |   |        |      |  |   |         | 148.7 |  
|Marketing, general, and administrative                             |                                                                                             |                       |     |       |        |           | 3.0  |              |              |   | 61.9         |       |   |              | 58.1    |       |       |   |       |       |  |   | 123.0   |      
|Equity in (earnings) losses of subsidiaries and joint
    ventures |                                                                                             |                       | 91.8 |       |        |           | 44.9 |              |              |   | (2.6         | )     |   |              |        |       |       |   | (134.1 | )     |  |   |        |      
|Asset impairments and other restructuring charges                  |                                                                                             |                       |     |       |        |           | 1.2  |              |              |   | 35.2         |       |   |              | 1.2     |       |       |   |       |       |  |   | 37.6    |      
|Other (income) expense, net                                        |                                                                                             |                       |     |       |        |           | 1.2  |              |              |   | (1.3         | )     |   |              | 6.9     |       |       |   |       |       |  |   | 6.8     |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from operations                                                             |                       |      | (91.8 | )      |           |      | (63.6        | )            |   |              | (61.2 | ) |              |         | 63.8  |       |   |        | 134.1 |  |   |         | (18.7 | )
|Interest (income) expense, net                                     |                                                                                             |                       | (0.5 | )     |        |           | 27.1 |              |              |   | 0.7          |       |   |              | 21.9    |       |       |   |       |       |  |   | 49.2    |      
|Other non-operating expense                                        |                                                                                             |                       |     |       |        |           | 0.6  |              |              |   |             |       |   |              |        |       |       |   |       |       |  |   | 0.6     |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from continuing operations before taxes on
    income and minority interest |                       |      | (91.3 | )      |           |      | (91.3        | )            |   |              | (61.9 | ) |              |         | 41.9  |       |   |        | 134.1 |  |   |         | (68.5 | )
|Income tax expense                                                 |                                                                                             |                       |     |       |        |           | 0.5  |              |              |   | 0.2          |       |   |              | 18.1    |       |       |   |       |       |  |   | 18.8    |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Earnings (loss) from continuing operations before minority
    interest                     |                       |      | (91.3 | )      |           |      | (91.8        | )            |   |              | (62.1 | ) |              |         | 23.8  |       |   |        | 134.1 |  |   |         | (87.3 | )
|Minority interest                                                  |                                                                                             |                       |     |       |        |           |     |              |              |   |             |       |   |              | 7.5     |       |       |   |       |       |  |   | 7.5     |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Income (loss) from continuing operations                                                    |                       |      | (91.3 | )      |           |      | (91.8        | )            |   |              | (62.1 | ) |              |         | 16.3  |       |   |        | 134.1 |  |   |         | (94.8 | )
|Income from discontinued operations, net of tax                    |                                                                                             |                       |     |       |        |           |     |              |              |   | 2.4          |       |   |              | 1.1     |       |       |   |       |       |  |   | 3.5     |      
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  
|                                                                   | Net income (loss)                                                                           |                       | $    | (91.3 | )      |           | $    | (91.8        | )            |   | $            | (59.7 | ) |              | $       | 17.4  |       |   | $      | 134.1 |  |   | $       | (91.3 | )
|                                                                   |                                                                                             |                       |      |       |        |           |      |              |              |   |              |       |   |              |         |       |       |  

20



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEETS


As of October 31, 2006


|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |   |          |        |   |   |        |         | 
|--------------------------------------------- | ------------------------------------------ | ------ | ------ | ----- | ------ | --------------------- | ------ | ------------ | ------------ | - | ------------ | ----- |  | ------------ | ------ | ------- | ----- | - | -------- | ------ | - | - | ------ | ------- | 
|                                              |                                            |        |        |       |        | Guarantor             |        |              | Nonguarantor |   |              |       |  |             
|                                              |                                            | Parent |        |       | Issuer |                       |        | Subsidiaries |              |   | Subsidiaries |       |  | Eliminations |        |         | Total |  
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              |                                            |        |        |       |        | (Dollars in millions) |        |              |             
|                                              |                                            |        |        |       |        | (Unaudited)           |        |              |             
|Cash and cash equivalents                     |                                            | $      |       |       |        | $                     | (3.3   | )            |              | $ | 0.6          |       |  | $            | 62.4   |         |       | $ |         |        |   | $ | 59.7   |        
|Receivables                                   |                                            |        |       |       |        |                       | (85.3  | )            |              |   | 96.6         |       |  |              | 284.8  |         |       |   |         |        |   |   | 296.1  |        
|Other receivables                             |                                            |        |       |       |        |                       | 40.8   |              |              |   |             |       |  |              |       |         |       |   |         |        |   |   | 40.8   |        
|Inventories                                   |                                            |        |       |       |        |                       | (0.4   | )            |              |   | 72.0         |       |  |              | 127.7  |         |       |   |         |        |   |   | 199.3  |        
|Prepaid expenses and other                    |                                            |        |       |       |        |                       | 2.1    |              |              |   | 7.7          |       |  |              | 7.5    |         |       |   |         |        |   |   | 17.3   |        
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total current assets                       |        |        |      |        |                       |        | (46.1        | )            |   |              | 176.9 |  |              |        | 482.4   |       |   |          |       |   |   |        | 613.2   | 
|Property, plant, and equipment, net           |                                            |        |       |       |        |                       | 30.1   |              |              |   | 125.0        |       |  |              | 542.3  |         |       |   |         |        |   |   | 697.4  |        
|Goodwill and other assets                     |                                            |        | 106.6  |       |        |                       | 789.2  |              |              |   | (144.8       | )     |  |              | 384.9  |         |       |   | (707.8   | )      |   |   | 428.1  |        
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total assets                               |        | $      | 106.6 |        |                       | $      | 773.2        |              |   | $            | 157.1 |  |              | $      | 1,409.6 |       |   | $        | (707.8 | ) |   | $      | 1,738.7 | 
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|Bank borrowings and other notes               |                                            | $      |       |       |        | $                     |       |              |              | $ |             |       |  | $            | 24.3   |         |       | $ |         |        |   | $ | 24.3   |        
|Current portion of long-term debt             |                                            |        |       |       |        |                       | 4.6    |              |              |   | 1.0          |       |  |              | 3.6    |         |       |   |         |        |   |   | 9.2    |        
|Accounts payable and accrued liabilities      |                                            |        | 0.1    |       |        |                       | 63.1   |              |              |   | 61.0         |       |  |              | 278.6  |         |       |   |         |        |   |   | 402.8  |        
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total current liabilities                  |        |        | 0.1   |        |                       |        | 67.7         |              |   |              | 62.0  |  |              |        | 306.5   |       |   |          |       |   |   |        | 436.3   | 
|Long-term debt, net of current portion        |                                            |        |       |       |        |                       | 658.2  |              |              |   | 4.5          |       |  |              | 4.3    |         |       |   |         |        |   |   | 667.0  |        
|Pension and other long-term liabilities       |                                            |        |       |       |        |                       | 224.3  |              |              |   | 0.8          |       |  |              | 250.9  |         |       |   |         |        |   |   | 476.0  |        
|Minority interest                             |                                            |        |       |       |        |                       | 12.4   |              |              |   |             |       |  |              | 40.9   |         |       |   |         |        |   |   | 53.3   |        
|Parent loans                                  |                                            |        | 0.4    |       |        |                       | (231.5 | )            |              |   | (30.9        | )     |  |              | 256.9  |         |       |   | 5.1      |        |   |   |       |        
|Common stock                                  |                                            |        | 0.4    |       |        |                       |       |              |              |   |             |       |  |              |       |         |       |   |         |        |   |   | 0.4    |        
|Additional paid-in capital                    |                                            |        | 677.9  |       |        |                       | 687.6  |              |              |   | 482.8        |       |  |              | 569.1  |         |       |   | (1,739.5 | )      |   |   | 677.9  |        
|Retained earnings (accumulated deficit)       |                                            |        | (670.6 | )     |        |                       | (653.6 | )            |              |   | (369.3       | )     |  |              | (102.6 | )       |       |   | 1,125.5  |        |   |   | (670.6 | )      
|Accumulated other comprehensive income (loss) |                                            |        | 98.4   |       |        |                       | 8.1    |              |              |   | 7.2          |       |  |              | 83.6   |         |       |   | (98.9    | )      |   |   | 98.4   |        
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total stockholders equity                 |        |        | 106.1 |        |                       |        | 42.1         |              |   |              | 120.7 |  |              |        | 550.1   |       |   |          | (712.9 | ) |   |        | 106.1   | 
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total liabilities and stockholders equity |        | $      | 106.6 |        |                       | $      | 773.2        |              |   | $            | 157.1 |  |              | $      | 1,409.6 |       |   | $        | (707.8 | ) |   | $      | 1,738.7 | 
|                                              |                                            |        |        |       |        |                       |        |              |              |   |              |       |  |              |        |         |       |  

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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEETS


As of January 31, 2006


|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |   |          |        |   |   |        |         | 
|--------------------------------------------- | ------------------------------------------ | --------------------- | ------ | ----- | ------ | --------- | ------ | ------------ | ------------ | - | ------------ | ----- |  | ------------ | ------ | ------- | ----- | - | -------- | ------ | - | - | ------ | ------- | 
|                                              |                                            |                       |        |       |        | Guarantor |        |              | Nonguarantor |   |              |       |  |             
|                                              |                                            | Parent                |        |       | Issuer |           |        | Subsidiaries |              |   | Subsidiaries |       |  | Eliminations |        |         | Total |  
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              |                                            | (Dollars in millions) |       
|Cash and cash equivalents                     |                                            | $                     |       |       |        | $         | (4.1   | )            |              | $ | 0.6          |       |  | $            | 46.0   |         |       | $ |         |        |   | $ | 42.5   |        
|Receivables                                   |                                            |                       |       |       |        |           | (112.1 | )            |              |   | 126.6        |       |  |              | 241.1  |         |       |   |         |        |   |   | 255.6  |        
|Other receivables                             |                                            |                       |       |       |        |           | 101.0  |              |              |   |             |       |  |              |       |         |       |   |         |        |   |   | 101.0  |        
|Inventories                                   |                                            |                       |       |       |        |           | 1.3    |              |              |   | 66.0         |       |  |              | 112.6  |         |       |   |         |        |   |   | 179.9  |        
|Prepaid expenses and other                    |                                            |                       |       |       |        |           | 4.7    |              |              |   | 9.3          |       |  |              | 9.5    |         |       |   |         |        |   |   | 23.5   |        
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total current assets                       |                       |        |      |        |           |        | (9.2         | )            |   |              | 202.5 |  |              |        | 409.2   |       |   |          |       |   |   |        | 602.5   | 
|Property, plant, and equipment, net           |                                            |                       |       |       |        |           | 34.1   |              |              |   | 173.1        |       |  |              | 550.9  |         |       |   |         |        |   |   | 758.1  |        
|Goodwill and other assets                     |                                            |                       | 183.5  |       |        |           | 840.6  |              |              |   | (102.4       | )     |  |              | 384.5  |         |       |   | (867.6   | )      |   |   | 438.6  |        
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total assets                               |                       | $      | 183.5 |        |           | $      | 865.5        |              |   | $            | 273.2 |  |              | $      | 1,344.6 |       |   | $        | (867.6 | ) |   | $      | 1,799.2 | 
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|Bank borrowings and other notes               |                                            | $                     |       |       |        | $         |       |              |              | $ | 1.0          |       |  | $            | 24.5   |         |       | $ |         |        |   | $ | 25.5   |        
|Current portion of long-term debt             |                                            |                       |       |       |        |           | 4.6    |              |              |   | 3.0          |       |  |              | 11.6   |         |       |   |         |        |   |   | 19.2   |        
|Accounts payable and accrued liabilities      |                                            |                       |       |       |        |           | 68.7   |              |              |   | 70.0         |       |  |              | 229.1  |         |       |   |         |        |   |   | 367.8  |        
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total current liabilities                  |                       |        |      |        |           |        | 73.3         |              |   |              | 74.0  |  |              |        | 265.2   |       |   |          |       |   |   |        | 412.5   | 
|Long-term debt, net of current portion        |                                            |                       |       |       |        |           | 661.7  |              |              |   | 15.5         |       |  |              | 7.1    |         |       |   |         |        |   |   | 684.3  |        
|Pension and other long-term liabilities       |                                            |                       |       |       |        |           | 236.6  |              |              |   | 0.6          |       |  |              | 234.7  |         |       |   |         |        |   |   | 471.9  |        
|Minority interest                             |                                            |                       |       |       |        |           | 12.1   |              |              |   |             |       |  |              | 35.1   |         |       |   |         |        |   |   | 47.2   |        
|Parent loans                                  |                                            |                       | 0.2    |       |        |           | (265.3 | )            |              |   | (30.4        | )     |  |              | 292.3  |         |       |   | 3.2      |        |   |   |       |        
|Common stock                                  |                                            |                       | 0.4    |       |        |           |       |              |              |   |             |       |  |              |       |         |       |   |         |        |   |   | 0.4    |        
|Additional paid-in capital                    |                                            |                       | 675.9  |       |        |           | 685.6  |              |              |   | 519.0        |       |  |              | 570.6  |         |       |   | (1,775.2 | )      |   |   | 675.9  |        
|Retained earnings (accumulated deficit)       |                                            |                       | (566.3 | )     |        |           | (549.3 | )            |              |   | (305.5       | )     |  |              | (122.1 | )       |       |   | 976.9    |        |   |   | (566.3 | )      
|Accumulated other comprehensive income (loss) |                                            |                       | 73.3   |       |        |           | 10.8   |              |              |   |             |       |  |              | 61.7   |         |       |   | (72.5    | )      |   |   | 73.3   |        
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total stockholders equity                 |                       |        | 183.3 |        |           |        | 147.1        |              |   |              | 213.5 |  |              |        | 510.2   |       |   |          | (870.8 | ) |   |        | 183.3   | 
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  
|                                              | Total liabilities and stockholders equity |                       | $      | 183.5 |        |           | $      | 865.5        |              |   | $            | 273.2 |  |              | $      | 1,344.6 |       |   | $        | (867.6 | ) |   | $      | 1,799.2 | 
|                                              |                                            |                       |        |       |        |           |        |              |              |   |              |       |  |              |        |         |       |  

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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


For the Nine Months Ended October 31, 2006


|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |       |       |  
|------------------------------------------------------ | -------------------------------------------------- | ---------------------------------- | - | ------ | - | --------- | ------------ | ---- | ------------ | ------------ | ---- | ----- | ------------ | - | ----- | ----- | ----- | - | - | - | - | - | ---- | ----- | ----- | -
|                                                       |                                                    |                                    |   |        |   | Guarantor |              |      | Nonguarantor |              |      |       |              |  
|                                                       |                                                    | Parent                             |   | Issuer |   |           | Subsidiaries |      |              | Subsidiaries |      |       | Eliminations |   | Total |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |      
|                                                       |                                                    | (Dollars in millions)              |  
|                                                       |                                                    | (Unaudited)                        |  
|Cash flows provided by (used for) operating activities |                                                    | $                                  |  |        |   | $         | (24.3        | )    |              | $            | 0.6  |       |              | $ | 107.6 |       |       | $ |  |   |   | $ | 83.9 |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|Cash flows from investing activities:                  |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |      
|                                                       | Purchase of property, plant, equipment and tooling |                                    |   |       |   |           |              |     |              |              |      | (17.0 | )            |   |       | (33.6 | )     |   |   |  |   |   |      | (50.6 | )    
|                                                       | Proceeds from disposal of assets and businesses    |                                    |   |       |   |           |              |     |              |              |      | 16.6  |              |   |       | 1.0   |       |   |   |  |   |   |      | 17.6  |      
|                                                       | Capital contributed by minority shareholders       |                                    |   |       |   |           |              |     |              |              |      |      |              |   |       | 0.4   |       |   |   |  |   |   |      | 0.4   |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|                                                       |                                                    | Cash used for investing activities |   |        |  |           |              |      |             |              |      |       | (0.4         | ) |       |       | (32.2 | ) |   |   |  |   |      |       | (32.6 | )
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|Cash flows from financing activities:                  |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |      
|                                                       | Changes in bank borrowings and credit facility     |                                    |   |       |   |           |              |     |              |              |      | (1.0  | )            |   |       | (1.5  | )     |   |   |  |   |   |      | (2.5  | )    
|                                                       | Repayment of long term debt                        |                                    |   |       |   |           |              | (3.4 | )            |              |      | (13.1 | )            |   |       | (11.8 | )     |   |   |  |   |   |      | (28.3 | )    
|                                                       | Bank finance fees paid                             |                                    |   |       |   |           |              | (2.9 | )            |              |      |      |              |   |       |      |       |   |   |  |   |   |      | (2.9  | )    
|                                                       | Dividends paid to minority shareholders            |                                    |   |       |   |           |              |     |              |              |      |      |              |   |       | (1.8  | )     |   |   |  |   |   |      | (1.8  | )    
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|                                                       |                                                    | Cash used for financing activities |   |        |  |           |              |      | (6.3         | )            |      |       | (14.1        | ) |       |       | (15.1 | ) |   |   |  |   |      |       | (35.5 | )
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|Increase (decrease) in parent loans and advances       |                                                    |                                    |  |        |   |           | 31.4         |      |              |              | 13.9 |       |              |   | (45.3 | )     |       |   |  |   |   |   |     |      
|Effect of exchange rates on cash and cash equivalents  |                                                    |                                    |  |        |   |           |             |      |              |              |     |       |              |   | 1.4   |       |       |   |  |   |   |   | 1.4  |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|                                                       | Increase in cash and cash equivalents              |                                    |   |       |   |           |              | 0.8  |              |              |      |      |              |   |       | 16.4  |       |   |   |  |   |   |      | 17.2  |      
|Cash and cash equivalents at beginning of period       |                                                    |                                    |  |        |   |           | (4.1         | )    |              |              | 0.6  |       |              |   | 46.0  |       |       |   |  |   |   |   | 42.5 |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  
|Cash and cash equivalents at end of period             |                                                    | $                                  |  |        |   | $         | (3.3         | )    |              | $            | 0.6  |       |              | $ | 62.4  |       |       | $ |  |   |   | $ | 59.7 |      
|                                                       |                                                    |                                    |   |        |   |           |              |      |              |              |      |       |              |   |       |       |       |  

23



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


For the Nine Months Ended October 31, 2005


|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |       |       |  
|-------------------------------------------------------------------------- | -------------------------------------------------- | ------------------------------------- | - | ------ | - | --------- | ------------ | ----- | ------------ | ------------ | ---- | ----- | ------------ | - | ----- | ----- | ----- | - | - | - | - | - | ---- | ----- | ----- | -
|                                                                           |                                                    |                                       |   |        |   | Guarantor |              |       | Nonguarantor |              |      |       |              |  
|                                                                           |                                                    | Parent                                |   | Issuer |   |           | Subsidiaries |       |              | Subsidiaries |      |       | Eliminations |   | Total |      
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |      
|                                                                           |                                                    | (Dollars in millions)                 |  
|                                                                           |                                                    | (Unaudited)                           |  
|Cash flows provided by (used for) operating activities                     |                                                    | $                                     |  |        |   | $         | (83.8        | )     |              | $            | 15.2 |       |              | $ | 61.8  |       |       | $ |  |   |   | $ | (6.8 | )    
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|Cash flows from investing activities:                                      |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |      
|                                                                           | Purchase of property, plant, equipment and tooling |                                       |   |       |   |           |              | (0.9  | )            |              |      | (46.9 | )            |   |       | (47.8 | )     |   |   |  |   |   |      | (95.6 | )    
|                                                                           | Proceeds from disposal of assets and businesses    |                                       |   |       |   |           |              | 0.5   |              |              |      | 13.7  |              |   |       | 4.3   |       |   |   |  |   |   |      | 18.5  |      
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|                                                                           |                                                    | Cash used for investing activities    |   |        |  |           |              |       | (0.4         | )            |      |       | (33.2        | ) |       |       | (43.5 | ) |   |   |  |   |      |       | (77.1 | )
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|Cash flows from financing activities:                                      |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |   |   |   |   |   |      |      
|Changes in bank borrowings and credit facility                             |                                                    |                                       |  |        |   |           |             |       |              |              |     |       |              |   | 23.9  |       |       |   |  |   |   |   | 23.9 |      
|                                                                           | Repayment of Term Loan B, net of related fees      |                                       |   |       |   |           |              | (73.8 | )            |              |      |      |              |   |       |      |       |   |   |  |   |   |      | (73.8 | )    
|                                                                           | Borrowings from Term Loan C                        |                                       |   |       |   |           |              | 150.0 |              |              |      |      |              |   |       |      |       |   |   |  |   |   |      | 150.0 |      
|                                                                           | Borrowings (repayment) of long term debt           |                                       |   |       |   |           |              | 29.9  |              |              |      | 6.3   |              |   |       | (2.5  | )     |   |   |  |   |   |      | 33.7  |      
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|                                                                           |                                                    | Cash provided by financing activities |   |        |  |           |              |       | 106.1        |              |      |       | 6.3          |   |       |       | 21.4  |   |   |   |  |   |      |       | 133.8 |  
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|Increase (decrease) in parent loans and advances                           |                                                    |                                       |  |        |   |           | (13.9        | )     |              |              | 6.0  |       |              |   | 7.9   |       |       |   |  |   |   |   |     |      
|Net cash used for operating activities from discontinued
    operations    |                                                    |                                       |  |        |   |           |             |       |              |              | 6.3  |       |              |   | (3.1  | )     |       |   |  |   |   |   | 3.2  |      
|Net cash used for investing activities from discontinued
    operations    |                                                    |                                       |  |        |   |           |             |       |              |              | (0.3 | )     |              |   | (0.4  | )     |       |   |  |   |   |   | (0.7 | )    
|Net cash provided by financing activities from discontinued
    operations |                                                    |                                       |  |        |   |           |             |       |              |              |     |       |              |   |      |       |       |   |  |   |   |   |     |      
|Effect of exchange rates on cash and cash equivalents                      |                                                    |                                       |  |        |   |           |             |       |              |              |     |       |              |   | (0.7  | )     |       |   |  |   |   |   | (0.7 | )    
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|                                                                           |                                                    | Increase in cash and cash equivalents |   |        |  |           |              |       | 8.0          |              |      |       | 0.3          |   |       |       | 43.4  |   |   |   |  |   |      |       | 51.7  |  
|Cash and cash equivalents at beginning of period                           |                                                    |                                       |  |        |   |           | (9.3         | )     |              |              | (0.2 | )     |              |   | 44.4  |       |       |   |  |   |   |   | 34.9 |      
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  
|Cash and cash equivalents at end of period                                 |                                                    | $                                     |  |        |   | $         | (1.3         | )     |              | $            | 0.1  |       |              | $ | 87.8  |       |       | $ |  |   |   | $ | 86.6 |      
|                                                                           |                                                    |                                       |   |        |   |           |              |       |              |              |      |       |              |   |       |       |       |  

24



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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Executive Summary


10-K




| |                 
| | ----------------
| | Company Overview

12-month












25



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##### Table of Contents



Results of Operations




| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Consolidated Results  Comparison of the Three
    Months Ended October 31, 2006 to the Three Months Ended
    October 31, 2005



|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |       |       |   |        |        |      |   
|------------------------------------------------------- | ------------------------------- | ------------ | ---- | ----- | ------------ | - | ---- | -------- | ----- | - | -------- | ----- | ----- | - | ------ | ------ | ---- | --
|                                                        |                                 | Three Months |      |       | Three Months |   |      |          |       |  
|                                                        |                                 | Ended        |      |       | Ended        |   |      |          |       |  
|                                                        |                                 | October 31,  |      |       | October 31,  |   |      |          |       |  
|                                                        |                                 | 2006         |      |       | 2005         |   |      | $ Change |       |   | % Change |      
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|Net sales:                                              |                                 |              |      |       |              |   |      |          |       |   |          |       |       |   |        |       
|                                                        | Automotive Wheels               |              | $    | 432.6 |              |   | $    | 423.3    |       |   | $        | 9.3   |       |   |        | 2.2    | %   
|                                                        | Components                      |              |      | 156.9 |              |   |      | 180.7    |       |   |          | (23.8 | )     |   |        | (13.2  | )%  
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|                                                        |                                 | Total        |      | $     | 589.5        |   |      | $        | 604.0 |   |          | $     | (14.5 | ) |        |        | (2.4 | )%
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|Gross profit                                            |                                 | $            | 53.4 |       |              | $ | 55.3 |          |       | $ | (1.9     | )     |       |   | (3.4   | )%    
|Marketing, general, and administrative                  |                                 |              | 35.4 |       |              |   | 37.5 |          |       |   | (2.1     | )     |       |   | (5.6   | )%    
|Asset impairments and other restructuring charges       |                                 |              | 41.5 |       |              |   | 3.8  |          |       |   | 37.7     |       |       |   | 992.1  | %     
|Other expense, net                                      |                                 |              | 4.1  |       |              |   | (2.8 | )        |       |   | 6.9      |       |       |   | 246.4  | %     
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|                                                        | Earnings from operations        |              |      | (27.6 | )            |   |      | 16.8     |       |   |          | (44.4 | )     |   |        | (264.3 | )%  
|Interest expense, net                                   |                                 |              | 19.4 |       |              |   | 18.1 |          |       |   | 1.3      |       |       |   | 7.2    | %     
|Other non-operating expense                             |                                 |              |     |       |              |   | 0.2  |          |       |   | (0.2     | )     |       |   | (100.0 | )%    
|Income tax expense                                      |                                 |              | 9.5  |       |              |   | 10.2 |          |       |   | (0.7     | )     |       |   | (6.9   | )%    
|Minority interest                                       |                                 |              | 3.1  |       |              |   | 2.4  |          |       |   | 0.7      |       |       |   | 29.2   | %     
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|                                                        | Loss from continuing operations |              |      | (59.6 | )            |   |      | (14.1    | )     |   |          | (45.7 | )     |   |        | (324.1 | )%  
|Income from discontinued operations, net of tax of $0.4 |                                 |              |     |       |              |   | 0.8  |          |       |   | (0.8     | )     |       |   | (100.0 | )%    
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      
|                                                        | Net loss                        |              | $    | (59.6 | )            |   | $    | (13.3    | )     |   | $        | (46.3 | )     |   |        | (348.1 | )%  
|                                                        |                                 |              |      |       |              |   |      |          |       |   |          |      



| |      
| | -----
| | Sales





| |             
| | ------------
| | Gross profit



26



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##### Table of Contents





| |                                       
| | --------------------------------------
| | Marketing, general, and administrative





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges

reduction-in






| |                      
| | ---------------------
| | Interest expense, net





| |             
| | ------------
| | Income taxes





| |                        
| | -----------------------
| | Discontinued operations





| |         
| | --------
| | Net loss



27



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##### Table of Contents





| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | Segment Results  Comparison of the Three Months
    Ended October 31, 2006 to the Three Months Ended
    October 31, 2005



| |                  
| | -----------------
| | Automotive Wheels



|                                                   |                                                  |                                                         |       |     |              |   |       |          |     |   |     |      |      |  
|-------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------------- | ----- | --- | ------------ | - | ----- | -------- | --- | - | --- | ---- | ---- | -
|                                                   |                                                  | Three Months                                            |       |     | Three Months |   |       |         
|                                                   |                                                  | Ended                                                   |       |     | Ended        |   |       |         
|                                                   |                                                  | October 31,                                             |       |     | October 31,  |   |       |         
|                                                   |                                                  | 2006                                                    |       |     | 2005         |   |       | $ Change |    
|                                                   |                                                  |                                                         |       |     |              |   |       |          |    
|Net sales                                          |                                                  | $                                                       | 432.6 |     |              | $ | 423.3 |          |     | $ | 9.3 |     
|Asset impairments and other restructuring charges: |                                                  |                                                         |       |     |              |   |       |          |     |   |     |     
|                                                   | Facility closure costs                           |                                                         | $     | 0.4 |              |   | $     | 1.5      |     |   | $   | (1.1 | )   
|                                                   | Impairment of facility, machinery, and equipment |                                                         |       |    |              |   |       | 1.1      |     |   |     | (1.1 | )   
|                                                   | Severance and other restructuring costs          |                                                         |       | 1.5 |              |   |       | 0.5      |     |   |     | 1.0  |     
|                                                   |                                                  |                                                         |       |     |              |   |       |          |    
|                                                   |                                                  | Total asset impairments and other restructuring charges |       | $   | 1.9          |   |       | $        | 3.1 |   |     | $    | (1.2 | )
|Earnings from operations                           |                                                  | $                                                       | 23.4  |     |              | $ | 22.2  |          |     | $ | 1.2 |     



| |          
| | ---------
| | Net sales





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges





| |                         
| | ------------------------
| | Earnings from operations



28



---



##### Table of Contents





| |           
| | ----------
| | Components



|                                                   |                                                               |                                                         |       |      |              |   |       |          |     |   |       |      |      | 
|-------------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------------------- | ----- | ---- | ------------ | - | ----- | -------- | --- | - | ----- | ---- | ---- | 
|                                                   |                                                               | Three Months                                            |       |      | Three Months |   |       |         
|                                                   |                                                               | Ended                                                   |       |      | Ended        |   |       |         
|                                                   |                                                               | October 31,                                             |       |      | October 31,  |   |       |         
|                                                   |                                                               | 2006                                                    |       |      | 2005         |   |       | $ Change |    
|                                                   |                                                               |                                                         |       |      |              |   |       |          |    
|Net sales                                          |                                                               | $                                                       | 156.9 |      |              | $ | 180.7 |          |     | $ | (23.8 | )   
|Asset impairments and other restructuring charges: |                                                               |                                                         |       |      |              |   |       |          |     |   |       |     
|                                                   | Impairment of facility, machinery, equipment, and intangibles |                                                         | $     | 39.0 |              |   | $     | 0.7      |     |   | $     | 38.3 |     
|                                                   | Severance and other restructuring costs                       |                                                         |       | 0.5  |              |   |       |         |     |   |       | 0.5  |     
|                                                   |                                                               |                                                         |       |      |              |   |       |          |    
|                                                   |                                                               | Total asset impairments and other restructuring charges |       | $    | 39.5         |   |       | $        | 0.7 |   |       | $    | 38.8 | 
|Loss from operations                               |                                                               | $                                                       | (45.7 | )    |              | $ | (1.7  | )        |     | $ | (44.0 | )   



| |          
| | ---------
| | Net sales





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges

reduction-in




| |                     
| | --------------------
| | Loss from operations





| |      
| | -----
| | Other



|                     |  |              |      |   |              |   |      |          |  |   |      |  
|-------------------- |  | ------------ | ---- | - | ------------ | - | ---- | -------- |  | - | ---- | -
|                     |  | Three Months |      |   | Three Months |   |      |         
|                     |  | Ended        |      |   | Ended        |   |      |         
|                     |  | October 31,  |      |   | October 31,  |   |      |         
|                     |  | 2006         |      |   | 2005         |   |      | $ Change | 
|                     |  |              |      |   |              |   |      |          | 
|Loss from operations |  | $            | (5.3 | ) |              | $ | (3.7 | )        |  | $ | (1.6 | )

29



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##### Table of Contents





| |                     
| | --------------------
| | Loss from operations



Results of Operations




| |                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------
| | Consolidated Results  Comparison of the Nine
    Months Ended October 31, 2006 to the Nine Months Ended
    October 31, 2005



|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |       |      |   |        |       |      |   
|------------------------------------------------------- | ------------------------------- | ------------------------------- | ----- | ------- | ----------- | - | ----- | -------- | ------- | - | -------- | ----- | ---- | - | ------ | ----- | ---- | --
|                                                        |                                 | Nine Months                     |       |         | Nine Months |   |       |          |         |  
|                                                        |                                 | Ended                           |       |         | Ended       |   |       |          |         |  
|                                                        |                                 | October 31,                     |       |         | October 31, |   |       |          |         |  
|                                                        |                                 | 2006                            |       |         | 2005        |   |       | $ Change |         |   | % Change |      
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|Net sales:                                              |                                 |                                 |       |         |             |   |       |          |         |   |          |       |      |   |        |      
|                                                        | Automotive Wheels               |                                 | $     | 1,255.9 |             |   | $     | 1,215.9  |         |   | $        | 40.0  |      |   |        | 3.3   | %   
|                                                        | Components                      |                                 |       | 489.8   |             |   |       | 533.3    |         |   |          | (43.5 | )    |   |        | (8.2  | )%  
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|                                                        |                                 | Total                           |       | $       | 1,745.7     |   |       | $        | 1,749.2 |   |          | $     | (3.5 | ) |        |       | (0.2 | )%
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|Gross profit                                            |                                 | $                               | 162.8 |         |             | $ | 148.7 |          |         | $ | 14.1     |       |      |   | 9.5    | %    
|Marketing, general, and administrative                  |                                 |                                 | 118.9 |         |             |   | 123.0 |          |         |   | (4.1     | )     |      |   | (3.3   | )%   
|Asset impairments and other restructuring charges       |                                 |                                 | 48.1  |         |             |   | 37.6  |          |         |   | 10.5     |       |      |   | 27.9   | %    
|Other expense, net                                      |                                 |                                 | 5.2   |         |             |   | 6.8   |          |         |   | (1.6     | )     |      |   | (23.5  | )%   
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|                                                        |                                 | Earnings (loss) from operations |       |         | (9.4        | ) |       |          | (18.7   | ) |          |       | 9.3  |   |        |       | 49.7 | % 
|Interest expense, net                                   |                                 |                                 | 56.8  |         |             |   | 49.2  |          |         |   | 7.6      |       |      |   | 15.4   | %    
|Other non-operating expense                             |                                 |                                 |      |         |             |   | 0.6   |          |         |   | (0.6     | )     |      |   | (100.0 | )%   
|Income tax expense                                      |                                 |                                 | 30.4  |         |             |   | 18.8  |          |         |   | 11.6     |       |      |   | 61.7   | %    
|Minority interest                                       |                                 |                                 | 7.5   |         |             |   | 7.5   |          |         |   |         |       |      |   | 0.0    | %    
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|                                                        | Loss from continuing operations |                                 |       | (104.1  | )           |   |       | (94.8    | )       |   |          | (9.3  | )    |   |        | (9.8  | )%  
|Income from discontinued operations, net of tax of $0.8 |                                 |                                 |      |         |             |   | 3.5   |          |         |   | (3.5     | )     |      |   | (100.0 | )%   
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      
|                                                        | Net loss                        |                                 | $     | (104.1  | )           |   | $     | (91.3    | )       |   | $        | (12.8 | )    |   |        | (14.0 | )%  
|                                                        |                                 |                                 |       |         |             |   |       |          |         |   |          |      



| |      
| | -----
| | Sales





| |             
| | ------------
| | Gross profit



30



---



##### Table of Contents







| |                                       
| | --------------------------------------
| | Marketing, general, and administrative





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges

reduction-in






| |                      
| | ---------------------
| | Interest expense, net





| |             
| | ------------
| | Income taxes





| |                        
| | -----------------------
| | Discontinued operations



31



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##### Table of Contents





| |         
| | --------
| | Net loss





| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | Segment Results  Comparison of the Nine Months
    Ended October 31, 2006 to the Nine Months Ended
    October 31, 2005



| |                  
| | -----------------
| | Automotive Wheels



|                                                   |                                                  |                                                         |         |     |             |   |         |          |     |   |      |      |      |  
|-------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------------- | ------- | --- | ----------- | - | ------- | -------- | --- | - | ---- | ---- | ---- | -
|                                                   |                                                  | Nine Months                                             |         |     | Nine Months |   |         |         
|                                                   |                                                  | Ended                                                   |         |     | Ended       |   |         |         
|                                                   |                                                  | October 31,                                             |         |     | October 31, |   |         |         
|                                                   |                                                  | 2006                                                    |         |     | 2005        |   |         | $ Change |    
|                                                   |                                                  |                                                         |         |     |             |   |         |          |    
|Net sales                                          |                                                  | $                                                       | 1,255.9 |     |             | $ | 1,215.9 |          |     | $ | 40.0 |     
|Asset impairments and other restructuring charges: |                                                  |                                                         |         |     |             |   |         |          |     |   |      |     
|                                                   | Facility closure costs                           |                                                         | $       | 1.9 |             |   | $       | 2.7      |     |   | $    | (0.8 | )   
|                                                   | Impairment of facility, machinery, and equipment |                                                         |         | 0.1 |             |   |         | 1.8      |     |   |      | (1.7 | )   
|                                                   | Severance and other restructuring costs          |                                                         |         | 3.1 |             |   |         | 2.4      |     |   |      | 0.7  |     
|                                                   |                                                  |                                                         |         |     |             |   |         |          |    
|                                                   |                                                  | Total asset impairments and other restructuring charges |         | $   | 5.1         |   |         | $        | 6.9 |   |      | $    | (1.8 | )
|Earnings from operations                           |                                                  | $                                                       | 52.6    |     |             | $ | 45.6    |          |     | $ | 7.0  |     



| |          
| | ---------
| | Net sales





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges





| |                         
| | ------------------------
| | Earnings from operations



32



---



##### Table of Contents





| |           
| | ----------
| | Components



|                                                   |                                                               |                                                         |       |      |             |   |       |          |      |   |       |     |      | 
|-------------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------------------- | ----- | ---- | ----------- | - | ----- | -------- | ---- | - | ----- | --- | ---- | 
|                                                   |                                                               | Nine Months                                             |       |      | Nine Months |   |       |         
|                                                   |                                                               | Ended                                                   |       |      | Ended       |   |       |         
|                                                   |                                                               | October 31,                                             |       |      | October 31, |   |       |         
|                                                   |                                                               | 2006                                                    |       |      | 2005        |   |       | $ Change |     
|                                                   |                                                               |                                                         |       |      |             |   |       |          |     
|Net sales                                          |                                                               | $                                                       | 489.8 |      |             | $ | 533.3 |          |      | $ | (43.5 | )  
|Asset impairments and other restructuring charges: |                                                               |                                                         |       |      |             |   |       |          |      |   |       |    
|                                                   | Facility closure costs                                        |                                                         | $     |     |             |   | $     |         |      |   | $     |    |     
|                                                   | Impairment of facility, machinery, equipment, and intangibles |                                                         |       | 39.1 |             |   |       | 30.7     |      |   |       | 8.4 |     
|                                                   | Severance and other restructuring costs                       |                                                         |       | 2.6  |             |   |       |         |      |   |       | 2.6 |     
|                                                   |                                                               |                                                         |       |      |             |   |       |          |     
|                                                   |                                                               | Total asset impairments and other restructuring charges |       | $    | 41.7        |   |       | $        | 30.7 |   |       | $   | 11.0 | 
|Loss from operations                               |                                                               | $                                                       | (46.9 | )    |             | $ | (43.3 | )        |      | $ | (3.6  | )  



| |          
| | ---------
| | Net sales





| |                                                  
| | -------------------------------------------------
| | Asset impairments and other restructuring charges

reduction-in




| |                     
| | --------------------
| | Loss from operations



33



---



##### Table of Contents





| |      
| | -----
| | Other



|                     |  |             |       |   |             |   |       |          |  |   |     | 
|-------------------- |  | ----------- | ----- | - | ----------- | - | ----- | -------- |  | - | --- | 
|                     |  | Nine Months |       |   | Nine Months |   |       |         
|                     |  | Ended       |       |   | Ended       |   |       |         
|                     |  | October 31, |       |   | October 31, |   |       |         
|                     |  | 2006        |       |   | 2005        |   |       | $ Change | 
|                     |  |             |       |   |             |   |       |          | 
|Loss from operations |  | $           | (15.1 | ) |             | $ | (21.0 | )        |  | $ | 5.9 | 



| |                     
| | --------------------
| | Loss from operations





| |                                
| | -------------------------------
| | Liquidity and Capital Resources



| |           
| | ----------
| | Cash Flows

Operating Activities:


Investing Activities:


Financing Activities:




| |                     
| | --------------------
| | Sources of Liquidity





| |                        
| | -----------------------
| | Other Liquidity Matters



34



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##### Table of Contents













| |               
| | --------------
| | Credit Ratings



|                               |  |     |     |  |         |  |      | 
|------------------------------ |  | --- | --- |  | ------- |  | ---- | 
|                               |  | S&P |     |  | Moodys | 
|                               |  |     |     |  |         | 
|Corporate and Bank Debt rating |  |     | B-  |  |         |  | B3   | 
|Senior Note rating             |  |     | CCC |  |         |  | Caa2 | 

Off Balance Sheet Arrangements










35



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##### Table of Contents









| |                        
| | -----------------------
| | Contractual Obligations



|                                    |                   |                       |      |      |       |   |       |       |  |   |         |       |  |       |     |     |  |   |       |       | 
|----------------------------------- | ----------------- | --------------------- | ---- | ---- | ----- | - | ----- | ----- |  | - | ------- | ----- |  | ----- | --- | --- |  | - | ----- | ----- | 
|                                    |                   | Payment Due by Period |     
|                                    |                   |                       |     
|                                    |                   | Less than             |      |      | 1-3   |   |       | 4-5   |  |   | After 5 |       |  |      
|                                    |                   | 1 Year                |      |      | Years |   |       | Years |  |   | Years   |       |  | Total |    
|                                    |                   |                       |      |      |       |   |       |       |  |   |         |       |  |       |    
|Short-term borrowings               |                   | $                     | 24.3 |      |       | $ |      |       |  | $ |        |       |  | $     |    |     |  | $ | 24.3  |      
|Long-term debt                      |                   |                       | 8.0  |      |       |   | 327.7 |       |  |   | 313.1   |       |  |       |    |     |  |   | 648.8 |      
|Mortgage note payable               |                   |                       | 0.2  |      |       |   | 21.7  |       |  |   |        |       |  |       |    |     |  |   | 21.9  |      
|Capital lease obligations           |                   |                       | 1.0  |      |       |   | 2.1   |       |  |   | 2.4     |       |  |       |    |     |  |   | 5.5   |      
|Operating leases                    |                   |                       | 7.7  |      |       |   | 8.1   |       |  |   | 1.0     |       |  |       | 0.3 |     |  |   | 17.1  |      
|Capital expenditures                |                   |                       | 28.3 |      |       |   |      |       |  |   |        |       |  |       |    |     |  |   | 28.3  |      
|United States pension contributions |                   |                       | 19.8 |      |       |   | 14.1  |       |  |   | 6.7     |       |  |       | 1.3 |     |  |   | 41.9  |      
|                                    |                   |                       |      |      |       |   |       |       |  |   |         |       |  |       |    
|                                    | Total obligations |                       | $    | 89.3 |       |   | $     | 373.7 |  |   | $       | 323.2 |  |       | $   | 1.6 |  |   | $     | 787.8 | 
|                                    |                   |                       |      |      |       |   |       |       |  |   |         |       |  |       |    



| |                        
| | -----------------------
| | Other Cash Requirements



|                      |  |  |      | 
|--------------------- |  |  | ---- | 
|Interest              |  |  | 24.1 | 
|Taxes                 |  |  | 4.8  | 
|United States pension |  |  | 3.0  | 
|Restructuring costs   |  |  | 5.2  | 



| |                              
| | -----------------------------
| | New Accounting Pronouncements





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|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk



Foreign Exchange






37



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##### Table of Contents



Interest Rates




Commodities









|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures




13a-15(e) 15d-15(e) 10-K


Changes in Internal Control over Financial Reporting


10-K Internal Control 
Integrated Framework.


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##### Table of Contents







| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| |  | increase the rigor of reviewer and spreadsheet controls over
    accounting for income taxes   
|
| |  | ensure the tax department has an appropriate level of resources
    and tax accounting training
|
| |  | automate a significant portion of the international tax
    provision computation              










PART II. OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

10-Q







|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K.







|        |                                          
|------- | -----------------------------------------
|Item 2. | Changes in Securities and Use of Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information



39



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|                   |  |         |           |  |               |         |            |             |  |   |           |  |  |           |         |  |  |   |         | 
|------------------ |  | ------- | --------- |  | ------------- | ------- | ---------- | ----------- |  | - | --------- |  |  | --------- | ------- |  |  | - | ------- | 
|                   |  |         |           |  |               | Payable |            |             |  |   |          
|                   |  | Total   |           |  |               |         | July 2006, |             |  |   |           | 
|                   |  | Award   |           |  | Percentage of |         |            | Deferred to |  |   | Payable   |  |  | Payable   |        
|Name               |  | Payable |           |  | Base Salary   |         |            | 2007        |  |   | July 2007 |  |  | July 2008 |        
|                   |  |         |           |  |               |         |            |             |  |   |           |  |  |           |        
|Curtis J. Clawson  |  | $       | 1,800,000 |  |               |         | 225        | %           |  | $ | 600,000   |  |  | $         | 600,000 |  |  | $ | 600,000 | 
|James A. Yost      |  | $       | 810,000   |  |               |         | 180        | %           |  | $ | 270,000   |  |  | $         | 270,000 |  |  | $ | 270,000 | 
|Fred Bentley       |  | $       | 684,000   |  |               |         | 180        | %           |  | $ | 228,000   |  |  | $         | 228,000 |  |  | $ | 228,000 | 
|Daniel M. Sandberg |  | $       | 350,000   |  |               |         | 100        | %           |  | $ | 116,667   |  |  | $         | 116,666 |  |  | $ | 116,666 | 



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|        |         
|------- | --------
|Item 6. | Exhibits

| |    |    |  |                                                                                                                                                                                                                          
| | -- | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 31 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President, and Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.*                                                   
| | 31 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.*                                                                
| | 32 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President, and Chief Executive Officer, Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.*
| | 32 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.*             






|  |                               
|- | ------------------------------
|* | Filed electronically herewith.

41



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SIGNATURES






| |                                                     
| | ----------------------------------------------------
| | Hayes Lemmerz
    International, Inc.               
|
| | /s/ James A. Yost                                   
| |                                                     
| | James A. Yost                                       
| | Vice President, Finance, and Chief Financial Officer



42



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HAYES LEMMERZ INTERNATIONAL, INC.


10-Q EXHIBIT
INDEX


| |    |    |  |                                                                                                                                                                                                                          
| | -- | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 31 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President, and Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.*                                                   
| | 31 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.*                                                                
| | 32 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President, and Chief Executive Officer, Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.*
| | 32 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.*             






|  |                               
|- | ------------------------------
|* | Filed electronically herewith.