Superior Industries International Reports Third Quarter and Nine Month Results
VAN NUYS, Calif.--Oct. 16, 2001--Superior Industries International, Inc. announced today that net income for the third quarter ended September 30, 2001 was $10,708,000, or $0.41 per diluted share, in line with analysts' expectations.For last year's third quarter, net income was $17,231,000, or $0.66 per diluted share. Revenue for the period was $146,417,000 compared to $144,813,000 for the third quarter of 2000.
For the nine months ended September 30, 2001, net income was $40,021,000, or $1.52 per diluted share. This compares to net income of $57,587,000, or $2.19 per diluted share, for the first nine months of last year. Revenue was $474,417,000 compared to $476,020,000 for the same period of 2000.
The decline in net income reflected decreasing factory utilization rates, which reduced gross margin for the third quarter. The significant factor in relative quarterly margins was related to sudden major OEM plant shutdowns during the quarter. Ford Motor Company, a major customer, reported a 31% year over year drop in production in September. In addition, gross margin was reduced by higher energy costs.
"We continue to aggressively manage costs by adjusting our work force, minimizing overtime, and reducing discretionary spending during this period of industry weakness. Longer term, we are optimistic about Superior's performance as we continue to win large new and replacement aluminum wheel supply contracts both from existing and new customers that solidify our dominant position in the industry. Recent major contract wins include the new Dodge Ram, Chevrolet Avalanche, Ford Thunderbird, Toyota Camry and Buick Rendezvous programs. In addition, we believe that the aluminum suspension components business ultimately has significant potential for the future of our company," a spokesman said.
The company repurchased approximately 4,390,500 shares of its common stock since 1995, including 47,200 shares during the third quarter. Approximately 3,600,000 shares remain for repurchase 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, BMW, Volkswagen, Audi, Land Rover, MG Rover, Toyota, Mazda, Mitsubishi, Nissan and Isuzu. For additional information, visit Superior's Web site at www.supind.com.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors and risks discussed from time to time in the company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30 September 30
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2001 2000 2001 2000
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NET SALES $146,417 $144,813 $474,417 $476,020
Costs and Expenses
Cost of Sales 123,998 114,295 397,276 374,160
Selling and Administrative
Expenses 4,804 5,010 14,547 15,405
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INCOME FROM OPERATIONS 17,615 25,508 62,594 86,455
Interest Income, net 774 2,017 3,545 5,597
Miscellaneous Expense,
net 2,104 1,118 5,270 3,796
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INCOME BEFORE TAXES 16,285 26,407 60,869 88,256
Income Tax Expense 5,577 9,176 20,848 30,669
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NET INCOME $10,708 $17,231 $40,021 $57,587
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DILUTED EARNINGS
PER SHARE $0.41 $0.66 $1.52 $2.19
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WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 26,418,000 26,136,000 26,336,000 26,270,000
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SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
As of September 30
2001 2000
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CURRENT ASSETS $280,651 $272,955
PROPERTY, PLANT AND EQUIPMENT, net 224,860 215,386
OTHER ASSETS 30,264 30,285
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$535,775 $518,626
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CURRENT LIABILITIES $85,894 $113,266
CAPITALIZED LEASES -- 95
OTHER LONG-TERM LIABILITIES 17,404 20,651
SHAREHOLDERS' EQUITY 432,477 384,614
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$535,775 $518,626
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