Superior Industries International First Quarter Earnings Exceed Expectations on Record Revenue and Unit Shipments
VAN NUYS, Calif.--April 18, 2002--Superior Industries International, Inc. today reported that net income for the first quarter of 2002 significantly exceeded analysts' expectations as revenue and unit wheel shipments increased to new all-time records.
First Quarter Results
For the three months ended March 31, 2002, net income increased 7.6% to $17,172,000, or $0.65 per diluted share. This compares to net income of $15,957,000, or $0.61 per diluted share, for the first quarter of 2001. On the strength of a 16.0% increase in unit shipments of aluminum road wheels, revenue for the first quarter of 2002 increased 12.3% to $186,532,000, an all-time high for the Company. For the first quarter of 2001, revenue was $166,093,000.
This year's first quarter results included the write-off of non-recurring start-up costs of $1,653,000 related to the launch of Superior's new aluminum suspension components business. Results for the Company's second aluminum wheel manufacturing facility in Chihuahua, Mexico, which recently started-up, were included in gross profit for the period. The Company's joint venture aluminum wheel manufacturing operation in Hungary continues to post profitable results which are included in miscellaneous income.
At March 31, 2002, Superior reported working capital of $223.9 million, including cash and short-term investments of $117.8 million, and no debt.
Business Remains Strong
"Superior's aluminum wheel business is better than it's ever been, and all signs point to continued strength in the months to come," said Chairman and President Louis L. Borick. "We continue to win large new and replacement wheel contracts that underscore our OEM customers' confidence in Superior's performance and solidify our bullish outlook for the future. In addition to expanding our share of the aluminum wheel market, we also are making solid progress in our design, engineering and marketing programs for our new aluminum suspension components business, which represents a significant incremental growth opportunity for Superior."
Executive Vice President, Steven J. Borick said, "The wisdom of the capacity expansion program we completed last year is becoming increasingly apparent. Our plants are operating efficiently, and Superior is well positioned to accommodate the increased volume we anticipate this year. I am especially pleased by the outstanding job our people are doing as we bring our new facilities on-line and rapidly move up the learning curve at these state-of-the-art plants."
Stock Repurchase Update
Superior has repurchased 4,392,500 shares of its common stock since 1995. No shares were repurchased during the first quarter of 2002. 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
March 31
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2002 2001
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NET SALES $ 186,532 $ 166,093
Costs and Expenses
Cost of Sales 154,703 136,204
Selling and Administrative Expenses 5,140 4,867
Start-up and Pre-production Costs 1,653 2,970
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INCOME FROM OPERATIONS 25,036 22,052
Interest Income, net 785 1,307
Miscellaneous Income, net 598 913
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INCOME BEFORE TAXES 26,419 24,272
Income Tax Expense 9,247 8,315
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NET INCOME $ 17,172 $ 15,957
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DILUTED EARNINGS PER SHARE $ 0.65 $ 0.61
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WEIGHTED AVERAGE AND
EQUIVALENT SHARES OUTSTANDING 26,607,000 26,257,000
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SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
As of March 31
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2002 2001
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CURRENT ASSETS $ 312,456 $ 269,490
PROPERTY, PLANT AND EQUIPMENT, net 227,353 224,515
OTHER ASSETS 35,169 27,753
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$ 574,978 $ 521,758
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CURRENT LIABILITIES $ 88,554 $ 91,250
OTHER LONG-TERM LIABILITIES 20,698 17,543
SHAREHOLDERS' EQUITY 465,726 412,965
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$ 574,978 $ 521,758
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