Superior Industries Inc.
) saw a significant decline in profits to $2.7 million or 10
cents per share in the fourth quarter of 2012 from $12.0 million
or 44 cents in the same quarter of 2011 (excluding income tax
benefit of $28.2 million). Earnings per share were substantially
lower than the Zacks Consensus Estimate of 26 cents.
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Revenues in the quarter fell 3% to $210.0 million due to flat
sales volume and a reduction in average selling price due to
lower aluminum prices. Gross profit decreased to $12.8 million or
6% of sales, from $18.1 million, or 8% in the prior year quarter.
The decrease was attributable to higher costs for maintenance and
labor, partially offset by lower aluminum prices which are
normally passed through customers.
Selling, general and administrative expenses in the quarter rose
to $7.4 million or 4% of net sales, from $6.2 million, or 3% for
the comparable period in 2011. The increase was attributable to a
$1.5 million benefit in 2011 for reduction in the deferred
compensation liability, partially offset by lower net cost in
For full year 2012, Superior Industries reported a decline in
profits to $30.9 million, or $1.13 per share from $67.2 million
or $2.46 in 2011. The decline was largely attributable to a swing
to income tax expense of $3.6 million in 2012 from a $25.2
million income tax benefit in 2011. Earnings per share were lower
than Zacks Consensus Estimate of $1.28.
Revenues for the year declined marginally to $821.5 million from
$822.2 million in 2011. The decline was mainly caused by a 7%
rise in sales volume to12.5 million units that was more than
offset by a reduction in average selling price, primarily due to
a decline in aluminum prices.
Gross profit decreased to $60.6 million or 7% of net sales, from
$67.1 million, or 8% in 2011. The decline was caused by
higher manufacturing costs, mainly labor and maintenance. The
higher manufacturing costs resulted from higher sales volume, as
well as equipment reliability and other challenges that reduced
operating efficiencies, especially in the older U.S. facilities.
The company continued to operate its facilities at high
utilization rates throughout the year.
As of Dec 31, 2012, Superior Industries had a working capital of
$338.3 million, including cash, cash equivalents and short-term
investments of $207.3 million. This compared with a working
capital of $335.7 million, including cash, cash equivalents and
short-term investments of $192.9 million. The company has no bank
or other interest bearing debt at the end of the year.
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.
Ford Motor Co.
), Jaguar, Land Rover, Mazda, Mercedes Benz, Mitsubishi, Nissan
Motor Co., Skoda, Subaru, Suzuki and
Toyota Motor Corp.
). It currently retains a Zacks Rank #4 (Sell).