Superior Industries International Inc.
) saw its profit slide 56.5% year over year to $6.4 million in
second-quarter 2012. The company earned 23 cents per share in the
quarter compared with 53 cents per share in the corresponding
quarter last year, missing the Zacks Consensus Estimate of 29
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Revenues increased 3% to $215.1 million in the reported quarter,
also missing the Zacks Consensus Estimate of $222 million. Average
unit selling price declined 10% year over year to $64.22 per wheel
in the quarter due to a fall in average aluminum price and
depreciation of Mexican peso relative to the U.S. dollar, thus
leading to a drop in revenues. Meanwhile, unit shipment jumped 14%
to 3.3 million compared with 2.9 million recorded in the year ago
Revenues from U.S. operations swelled 14% to $86.1 million in the
quarter. The year- over-year improvement reflects a 23% increase in
unit shipments, offset by an 8% decrease in the average selling
Revenues from Mexico operations dipped 3% to $129 million. The
decline was due to an 11% fall in the average selling price owing
to a fall in aluminum price, which offset a 9% rise in shipments
Gross profit was $15.7 million or 7.3% of sales compared with $19.5
million or 9.4% of sales in the second quarter of 2011. The
reduction in gross profit was attributable to product mix
challenges, adverse effects of foreign currency translation and
manufacturing challenges in the U.S.
Selling, general and administrative expenses went up 17.2% to $7.5
million in the quarter from $6.4 million in the same quarter last
year, driven by an increase in legal, audit and consulting
expenses. The operating income slipped 36% to $8.2 million from
$12.9 million a year ago. Operating income was adversely affected
by an unfavorable product mix and foreign currency translation.
As of June 30, 2012, Superior Industries had a working capital of
$344.6 million including cash, cash equivalents and short-term
investments of $212.3 million. This is compared with a working
capital of $335.7 million including cash, cash equivalents and
short-term investments 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 major customers of the company are
General Motors Company
Ford Motor Co.
Ford, General Motors and Chrysler accounted for 37%, 26% and 11% of
Superior's total unit shipment, respectively, in the second
quarter. Currently, Superior has a Zacks #3 Rank, which translates
into a short term (1 to 3 months) Hold rating.