Superior Industries Announces First Quarter Results
VAN NUYS, Calif.--April 16, 2004--| Revenue Hits New All-Time High Unit Shipments Set New First Quarter Record Net Income Declines As Anticipated to $0.51 Per Share |
Superior Industries International, Inc. today announced operating results for the first quarter of 2004, highlighted by record revenue and unit wheel shipments. Net income declined as anticipated in the company's press release on February 6, 2004, the result of the intense global competitive environment and operating issues at several of the company's recently expanded manufacturing facilities where focused improvement programs have been implemented.
First Quarter Results
For the three months ended March 31, 2004, revenue increased 10.7% to $234,191,000, an all-time high, compared to $211,492,000 for the same period last year. Unit wheel shipments increased 10.2% to a new first quarter record. Net income decreased to $13,667,000, or $0.51 per diluted share, compared to $22,266,000, or $0.83 per diluted share, for the first quarter of 2003.
Operating results for the first quarter of 2004 were impacted by additional developmental expenses related to new program opportunities and included a loss from Superior's aluminum suspension components business of approximately $2,943,000 compared to $2,500,000 in 2003. The company's share of profits from its joint venture aluminum wheel manufacturing operation in Hungary for this year's first quarter was $2,172,000 compared to $1,948,000 a year ago, primarily due to the favorable exchange rate.
At March 31, 2004, Superior had working capital of $303,560,000, including cash and cash equivalents of $142,663,000, and no debt. The company repurchased 103,600 shares of stock in the open market during the quarter.
Operations Review
President and Chief Operating Officer Steve Borick said, "While profitability in the first quarter continued to be affected by the difficult global pricing environment and unusual expenses and inefficiencies at several of our recently expanded plants, the growth in revenue and unit wheel shipments gives us confidence in the future. Also encouraging is that following a great year for new contract wins in 2003, the flow of new business remained robust in the first quarter of 2004, including initial shipments of cast aluminum wheels for Nissan's new Titan full size truck and Pathfinder Armada SUV. Additional large contracts are in the pipeline with a diversified list of OEM customers.
"We made progress during the first quarter toward resolving the operating issues that have affected Superior's recent performance. Longer term, pricing pressure remains our most formidable challenge. We are responding aggressively with programs to increase efficiency and productivity through automation, employee training, and the implementation of best practices throughout our organization. Achieving all of the gains we anticipate from these programs will take time, but we are committed to meeting the design, quality, delivery and price requirements our customers have come to expect from the industry leader while at the same time delivering value to our shareholders."
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Condensed Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended
March 31
2004 2003
---- ----
Net Sales $234,191 $211,492
Costs and Expenses
Cost of Sales 209,620 174,084
Selling and Administrative Expenses 5,882 5,785
Income From Operations 18,689 31,623
Equity in Earnings of Joint Ventures 2,183 1,934
Interest Income, net 591 912
Miscellaneous Expense, net (598) (213)
Income Before Income Taxes 20,865 34,256
Income Taxes 7,198 11,990
Net Income $13,667 $22,266
Earnings Per Share:
Basic $0.51 $0.84
Diluted $0.51 $0.83
Weighted Average and
Equivalent Shares Outstanding:
Basic 26,704,000 26,597,000
Diluted 26,978,000 26,958,000
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Condensed Balance Sheets (Unaudited)
(Dollars in Thousands)
As of March 31
2004 2003
---- ----
Current Assets $410,956 $386,654
Property, Plant and Equipment, net 266,846 250,376
Investments and Other Assets 56,397 44,274
$734,199 $681,304
Current Liabilities $107,396 $114,361
Long-Term Liabilities 28,046 18,987
Shareholders' Equity 598,757 547,956
$734,199 $681,304
