Superior Industries International Inc.
) reported a 17% decline in net income to $6.7 million in the first
quarter of 2012 compared to $8.1 million in the year-ago quarter.
On a per-share basis, profits declined 14% to 25 cents per share
from 29 cents in the same quarter last year. With this, the company
has surpassed Zacks Consensus Estimate by 6 cents per share.
Revenue in the quarter hiked 7% to $202.5 million from $189.5
million in the year-ago quarter, exceeding the Zacks Consensus
Estimate of $193 million. Unit shipments boosted by 11% to 3.1
million from 2.8 million in the year-ago quarter. The increase in
sales volume led the company to operate at full capacity in order
to fulfill the customer's demands.
Average selling price decreased 3% to $65.58 in the quarter from
$67.81 in the same quarter last year. The main reason behind the
decline in selling price was the change in average aluminum
Gross profit was $17.1 million or 8.5% of sales compared to
$16.9 million or 8.9% of sales in the first quarter of 2011. The
increase in gross profit was attributable to higher sales volume in
the quarter. However, margins declined year-over-year due to
product mix changes.
Cost of sales swelled 7% to $185.3 million from $172.7 million
in the corresponding quarter of the prior year. The rise in cost
was primarily due to higher direct labor expense related to the
increased production and certain other factory costs, such as
repairs, maintenance and operating supplies.
Superior Industries recorded flat operating income of $10.2
million or 5% of sales in the quarter compared with the prior year.
Selling, general and administrative expenses went up to $6.9
million or 3% of sales from $6.7 million or 4% of sales in the
corresponding quarter last year.
As of March 25, 2012, Superior Industries had working capital of
$342.4 million including cash, cash equivalents and short-term
investments of $198.0 million. This compared with working capital
of $335.7 million including cash, cash equivalents and short-term
investment of $192.9 million as of December 31, 2011. The company's
balance sheet is devoid of any interest-bearing debt.
Based in California, 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 Company
Ford Motor Co.
), Jaguar, Land Rover, Mazda, Mercedes Benz, Mitsubishi,
Nissan Motor Co. Ltd.
), Skoda, Subaru, Suzuki,
Toyota Motor Corp.
) Volkswagen and
) for their automobiles and light trucks.
Currently, it retains a Zacks #3 Rank, which implies a Hold
rating for the short-term.
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