Superior Industries First-Quarter Net Income Surges to New Record As Revenue and Unit Shipments Also Reach All-Time Highs
VAN NUYS, Calif.--April 11, 2003--Superior Industries International, Inc. announced today that net income for the first three months of 2003 increased 30% to a new record, as revenue and unit wheel shipments also rose to all-time first quarter highs.
First-Quarter Results
For the three months ended March 31, 2003, revenue increased 12% to $207,985,000 from $186,532,000 a year earlier. Unit wheel shipments increased 3%. Net income rose to $22,266,000, or $0.83 per diluted share, from $17,172,000, or $0.65 per diluted share, for the first quarter of 2002.
This year's first-quarter results included the write-off of non-recurring start-up costs of $2,500,000 related to the launch of Superior's new aluminum suspension components business. The company's share of profits from its joint venture aluminum wheel manufacturing operation in Hungary was $1,948,000.
At March 31, 2003, Superior had working capital of $272,293,000, including cash and short-term investments of $155,620,000, and no debt.
Efficiency Gains
Chairman and Chief Executive Officer Louis Borick said, "The increase in net profit margin for the first quarter to 10.7% from 9.2% a year earlier was primarily the result of efficiency improvements in both of our facilities in Mexico, especially at our newest plant in Chihuahua that came on-line in late 2001. Our managers and staff deserve a great deal of credit for this accomplishment. Superior's strong bottom-line results also reflected a favorable mix of wheel production for this year's first quarter, with more large-diameter and chrome-plated wheels in the total than last year.
"We built Superior by consistently meeting our customers' toughest design and engineering specifications, cost requirements, and delivery schedules. This well-earned reputation is the reason we are winning major new wheel supply contracts from current customers and adding important OEM accounts. Our aggressive expansion plan will allow us to sustain our superior performance at the far higher production rates that our customers will require in the future."
Investing in Growth
President and COO Steve Borick said, "Our geographic expansion has been enormously successful -- our plants in Mexico and our joint venture facility in Hungary are among the most advanced in the world. These plants also have served as test beds of Superior's ability to operate internationally. The experience has taught us valuable lessons that will be increasingly important as we prepare for further international expansion in the years ahead.
"Capacity expansion is only one of the ways we are investing in Superior's growth. In addition to our Commitment to Excellence and employee training, we have implemented programs to identify best practices within our organization and are developing a formal mechanism to ensure that they quickly are adopted throughout our company. We also are improving our operating controls and reporting processes, which will be facilitated by the upgrades to our management information systems and internal computer networks planned for 2003. We are listening to new ideas coming both from management ranks as well as from our manufacturing employees -- we are open to bottom-up as well as top-down improvements. These programs will help us maintain the quality Superior is known for while we achieve savings at every one of our plants and in every aspect of our business, from the shop floor to engineering to sales to finance."
Outlook
The COO continued, "Superior delivered an outstanding first quarter, especially in view of current geopolitical events and continued economic uncertainty. We continue to gain share of the aluminum wheel market, and based on new wheel supply programs already announced or in the pipeline, the outlook for the year's second half is encouraging. However, we are cautious as we look into the next couple of months, because production cut-backs for certain models recently announced by some of our OEM customers are likely to affect aluminum wheel demand in the second quarter."
Stock Repurchase Update
Superior has repurchased 4,573,000 shares of its common stock since 1995, including 81,000 shares repurchased during the first quarter of 2003. Approximately 3,428,000 shares remain to be repurchased under the March 2000 Board of Directors' authorization.
About Superior Industries
Superior supplies aluminum wheels and other aluminum automotive components to Ford, General Motors, DaimlerChrysler, Audi, BMW, Isuzu, Land Rover, Mazda, MG Rover, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. For additional information, visit Superior's Web site at www.supind.com.
Forward-Looking Statements
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Condensed Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended
March 31
2003 2002
Net Sales $207,985 $186,532
Costs and Expenses
Cost of Sales 168,106 154,703
Selling and Administrative Expenses 5,756 5,140
Suspension Components Start-up Costs 2,500 1,653
Income From Operations 31,623 25,036
Equity in Earnings of Joint Ventures 1,934 772
Interest Income, net 912 785
Miscellaneous Expense, net (213) (174)
Income Before Income Taxes 34,256 26,419
Income Taxes 11,990 9,247
Net Income $22,266 $17,172
Earnings Per Share:
Basic $0.84 $0.66
Diluted $0.83 $0.65
Weighted Average and
Equivalent Shares Outstanding:
Basic 26,597,000 25,988,000
Diluted 26,958,000 26,607,000
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Condensed Balance Sheets (Unaudited)
(Dollars in Thousands)
As of March 31
2003 2002
Current Assets $386,654 $312,456
Property, Plant and Equipment, net 250,376 227,353
Investments and Other Assets 44,274 35,169
$681,304 $574,978
Current Liabilities $114,361 $88,555
Long-Term Liabilities 18,987 20,698
Shareholders' Equity 547,956 465,725
$681,304 $574,978
