Superior Industries Inc. ( SUP ) posted a 28%
decline in earnings per share to 18 cents in the first quarter of
2013 compared with 25 cents in the year ago quarter. Earnings per
share were in line with the Zacks Consensus Estimate. Net income
declined 26.7% to $4.9 million from $6.7 million in the year-ago
quarter.FORD MOTOR CO (F): Free Stock Analysis ReportGENERAL MOTORS (GM): Free Stock Analysis ReportSUPERIOR INDS (SUP): Free Stock Analysis ReportTOYOTA MOTOR CP (TM): Free Stock Analysis
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Revenues in the quarter rose 1.97% to $206.4 million, beating the
Zacks Consensus Estimate of $199.0 million. The year over year
improvement was driven by stronger sales mix. Unit shipments
remained flat at 3.1 million units compared with the year-ago
Gross profit decreased 21% to $13.5 million or 6.5% of sales, from
$17.1 million, or 8.5% in the prior-year quarter. The decrease was
attributable to higher operating costs in the largest and oldest
U.S. facility of the company and increased labor payments.
Selling, general and administrative expenses in the quarter rose
4.7% to $7.2 million or 3.5% of net sales, from $6.9 million, or
3.4% for the comparable period in 2012. Operating income declined
38.3% to $6.3 million from $10.2 million year ago, mainly due to a
drop in gross profit.
As of Mar 31, 2013, Superior Industries had a working capital of
$345.3 million, including cash, cash equivalents and short-term
investments of $190.1 million. This compared with a working capital
of $338.3 million, including cash, cash equivalents and short-term
investments of $207.3 million. The company has no bank or other
interest bearing debt at the end of the quarter.
Superior Industries announced that it will construct a new
manufacturing facility in Chihuahua, Mexico. It will invest around
$125 million to $135 million for the construction of the facility.
The facility has an initial capacity of 2.0 million and 2.5 million
wheels annually. The company believes with the completion of
construction of the facility by mid 2015 production capacity will
improve by 15% to 20%.
California-based Superior Industries is one of the world's largest
designers and manufacturers of cast aluminum road wheels for the
automotive industry. The company's aluminum road wheels are sold to
OEMs such as Audi, BMW, Chrysler LLC, General Motors
Co. ( GM ),
Fiat, Ford Motor Co. ( F ) , Jaguar, Land Rover,
Mazda, Mercedes Benz, Mitsubishi, Nissan Motor Co., Skoda, Subaru,
Suzuki and Toyota Motor Corp. ( TM ) . It currently
retains a Zacks Rank #5 (Strong Sell).