Financial Overview

(in million dollars)

	FY2008	FY2007	Rate of change(%)	Factors
Net Sales	754.9	956.9	(21.1)	1)
Gross Profit	6.6	32.5	(79.7)	-

Factors
1)
-Consolidated net sales decreased 202.0 million USD or 21%, to 754.9 million USD in 2008 from 956.9 million USD in 2007. Aluminum wheel sales decreased to 206.1 million USD in 2008 to 738.4 million USD from 944.5 million USD a year ago, a 22% decrease. Unit shipments in 2008 decreased by 22 percent. The average selling price of the wheels in 2008 was approximately the same as the average selling price a year ago, as there was no significant change in sales mix. Wheel program development revenues were $16.5 million this year compared to $12.4 million a year ago.

-Unit shipments to Ford and GM totaled 65% of total OEM unit shipments in 2008 compared to 68% a year ago. Unit shipments to Chrysler increased to 15% from 13%, while shipments to its international customers totaled 20% compared to 19% in 2007.


Restructuring
-In August 2008, the Company announced the planned closure of its wheel manufacturing facility located in Pittsburg, Kansas and workforce reductions in its other North American plants, resulting in the layoff of approximately 665 employees and the elimination of 90 open positions. In January 2009, the Company also announced the planned closure of its Van Nuys, California wheel manufacturing facility, thereby eliminating an additional 290 jobs. The Kansas facility ceased operations in December 2008 and the California facility is expected to terminate operations in June 2009. These were the latest steps in its program to rationalize its production capacity after announcements by its major customers of assembly plant closures and sweeping production cuts, particularly in the light truck and SUV platforms.

R&D Expenditure

(in million dollars)

	FY2008	FY2007	FY2006
Total	4.7	6.3	6.8

R&D Structure
-A fully staffed engineering center, located in Fayetteville, Arkansas, support its research and development manufacturing needs. The Company also has a technical center in Detroit, Michigan, that maintains a team of engineering staff located near the largest customers' headquarters, engineering, and purchasing offices.