Superior Industries International Fourth Quarter Earnings Beat Estimates
VAN NUYS, Calif.--Feb. 7, 2002--Superior Industries International, Inc. announced today that net income for the fourth quarter exceeded analysts' estimates on record sales and record unit shipments of aluminum road wheels.Fourth Quarter Results
Net income for the fourth quarter ended December 31, 2001 was $15,333,000, or $0.58 per diluted share. Unit shipments increased 3% to a new record. Revenue increased to $168,978,000, also a record. For the fourth quarter of 2000, net income was $22,350,000, or $0.85 per diluted share, on revenue of $168,879,000.
2001 Annual Results
For the twelve months ended December 31, 2001, net income was $55,354,000, or $2.10 per diluted share. This included the write-off of non-recurring start-up costs of $9,700,000 related to the launch of Superior's new aluminum suspension components business and its new, second aluminum wheel manufacturing facility in Chihuahua, Mexico. Results also included a profit of $3,877,000 from Suoftec, the Company's joint venture aluminum wheel manufacturing operation in Hungary, compared to a loss of $1,971,000 in the prior year. For 2000, net income was $79,937,000, or $3.04 per diluted share.
Superior's new Chihuahua facility, which was in "start-up" phase for the first nine months of 2001, was consolidated in the Company's operating results for the first time in the fourth quarter. For the first nine months of 2001, start-up costs amounting to $2,960,000 were written off and included in miscellaneous expense. Since this facility was producing below capacity, the consolidation of its results had a negative effect on income from operations for the period.
Revenue for 2001 was $643,395,000. Unit shipments rose 1% to a new annual record, and exceeded 12,000,000 units for the second consecutive year. Revenue for 2000 was $644,899,000.
Strong Performance in a Weak Environment
"Superior delivered in a tough year. Our debt-free balance sheet and strong cash flow gave us an important competitive advantage as we adjusted to the changing business environment. Superior's global engineering and manufacturing capabilities, supported by our culture of excellence, continues to drive further increases in our market share. We won important new contracts in our aluminum wheel business, including an unprecedented long-term supply agreement with General Motors. We also made initial shipments of our first production aluminum suspension components. We moved forward in our design, engineering and marketing programs to grow this new business.
"We faced a global recession that caused production slowdowns and unexpected plant shutdowns by some of our major OEM automotive customers. Energy costs spiked. We also absorbed significant start-up costs and heavy capital investments related to our aluminum wheel capacity expansion program and the construction of our dedicated manufacturing facility for the emerging suspension components business. Superior's team met every challenge. We managed the company to solid profitability in a difficult environment, and we completed our capacity expansion program with funding entirely from internal sources," said President and Chairman Louis L. Borick.
Stock Repurchase Update
Superior has repurchased 4,392,500 shares of its common stock since 1995, including 64,505 shares repurchased during 2001. 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 Twelve Months Ended
December 31 December 31
2001 2000 2001 2000
NET SALES $ 168,978 $ 168,879 $ 643,395 $ 644,899
Costs and Expenses
Cost of Sales 140,764 128,519 538,040 502,678
Selling and
Administrative Expenses 5,020 5,311 19,567 20,716
INCOME FROM OPERATIONS 23,194 35,049 85,788 121,505
Interest Income, net 483 1,726 4,028 7,323
Miscellaneous Expense, net 357 2,521 5,627 6,318
INCOME BEFORE TAXES 23,320 34,254 84,189 122,510
Income Tax Expense 7,987 11,904 28,835 42,573
NET INCOME $ 15,333 $ 22,350 $ 55,354 $ 79,937
DILUTED EARNINGS PER SHARE $ 0.58 $ 0.85 $ 2.10 $ 3.04
WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 26,422,000 26,186,000 26,361,000 26,255,000
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
As of December 31
2001 2000
CURRENT ASSETS $ 280,271 $ 245,579
PROPERTY, PLANT AND EQUIPMENT, net 228,181 218,713
OTHER ASSETS 32,386 27,372
$ 540,838 $ 491,664
CURRENT LIABILITIES $ 71,134 $ 75,023
OTHER LONG-TERM LIABILITIES 20,960 17,323
SHAREHOLDERS' EQUITY 448,744 399,318
$ 540,838 $ 491,664