Superior Industries International Inc.
) reported adjusted earnings per share of 36 cents in the third
quarter of 2012 (excluding income tax benefit), significantly
higher than 13 cents in the year-ago quarter and outpaced the
Zacks Consensus Estimate by 17 cents.
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Net income increased significantly to $9.9 million from $3.3
million in the third quarter of 2011. Meanwhile, on a reported
basis, profits increased to $15.1 million or 55 cents per share
in the quarter from $4.2 million or 16 cents in the year-ago
quarter. The year-over-year growth in earnings was attributable
to decreases in cost of sales and selling, general and
administrative expenses (SG&A).
Cost of sales went down 8% to $178.9 million from $194.5 million
in the year ago quarter. SG&A fell 9.8% to $6.0 million from
$6.6 million in the same quarter a year ago. SG&A was
positively impacted by lower environmental compliance costs, and
labor and fringe benefit expenses.
Revenues in the quarter declined 6.3% to $193.9 billion, missing
the Zacks Consensus Estimate of $209.0 million. The fall in
revenues was driven by an 8% year-over-year decline in average
selling prices due to lower average aluminum prices, partially
offset by a 2% rise in unit shipments to 2.95 million in the
Revenues from the U.S. operations declined 11% to $68.5 million
in the quarter. The year-over-year decline reflects a 6% decrease
in unit shipments and an 8% fall in average selling prices.
Revenues from Mexico operations dipped 4% to $125.4 million, due
to an 8% fall in average selling prices, partially offset by a 7%
rise in shipment volumes.
Gross profit increased 19.4% to $15.0 million or 8% of sales
compared with $12.6 million or 6% in the third quarter of 2011.
The growth in gross profit was due to a non-cash benefit of $3.5
million from resolution of a foreign consumption tax.
Operating income shot up 51.8% to $9.1 million from $6.0 million
a year ago. Operating margin improved to 5% from 3% in the
year-ago quarter. Operating income was positively impacted by a
foreign consumption tax reserve, partially offset by unfavorable
impacts from changes in product mix.
As of September 30, 2012, Superior Industries had a working
capital of $346.0 million including cash, cash equivalents and
short-term investments of $219.9 million 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
Cash flow from operating activities increased to $48.2 million in
the first thirty-nine weeks of 2012 from $21.3 million in the
same period of 2011. Capital expenditures increased to $14.3
million from $13.7 million in the first thirty-nine weeks of
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
General Motors Company
Ford Motor Co.
), who accounted for 76% of company sales in the first nine
months of 2012.
Currently, Superior has a Zacks #1 Rank, which translates into a
short-term (1 to 3 months) Strong Buy rating.