Share price of
Superior Industries International Inc.
) decreased 3.2% on May 2, 2014 to $20.24 after the company
reported first-quarter 2014 earnings of 18 cents per share, missing
the Zacks Consensus Estimate of 20 cents. Earnings per share were
in line with the comparable quarter of 2013. Net income declined
2.3% to $4.8 million from $4.9 million in the year-ago quarter.
Revenues for the quarter dropped 11.2% year over year to $183.4
million, lagging the Zacks Consensus Estimate of $187 million. The
year-over-year decline was due to an 8% decrease in unit shipments
to 2.8 million wheels and a 4% decline in the average selling price
resulting from lower aluminum component sales.
Gross profit increased 15.7% to $15.6 million (or 8.5% of sales)
from $13.5 million (or 6.5% of sales) in the prior-year quarter.
The increase was attributable to lower costs, including labor,
maintenance and supply costs, and benefits derived from capital
Selling, general and administrative expenses (SG&A) increased
10.1% to $7.9 million in the quarter, or 4% of net sales, from $7.2
million or 3% in the prior-year quarter. The increase in expenses
was due to executive severance costs partially offset by lower
Operating income increased 22.1% to $7.7 million from $6.3 million
a year ago. The increase was due to higher gross profit.
As of Mar 30, 2014, Superior Industries had a working capital of
$257 million, including cash, cash equivalents and short-term
investments of $161.5 million. This compared unfavorably with the
working capital of $284.8 million including cash, cash equivalents
and short-term investments of $203.1 million as of Dec 29, 2013.
The decline in working capital is due to the construction of a new
wheel manufacturing plant in Mexico, which will start operation
from the first half of 2015. The company had no bank or other
interest-bearing debt at the end of the quarter.
Other Stocks to Consider
Superior Industries carries a Zacks Rank #3 (Hold). Some other
stocks worth considering in the same industry are
Modine Manufacturing Company
Magna International Inc.
). Both Gentherm and Modine Manufacturing sport a Zacks Rank #1
(Strong Buy), while Magna carries a Zacks Rank #2 (Buy).
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