Superior Industries: Earnings Increase 53% set new all-time records
VAN NUYS, Calif.--July 18, 2002--Superior Industries International, Inc. announced today that net income per share for the second quarter increased 53%, exceeding analysts' estimates, as revenue and aluminum wheel shipments set new all-time records.
Second Quarter Results
For the three months ended June 30, 2002, net income increased to $20,954,000, or $0.78 per diluted share. This compares to net income of $13,356,000, or $0.51 per diluted share, for the second quarter of 2001. Revenue increased 31% to $211,968,000, from $161,907,000 a year earlier. Unit wheel shipments increased 31%.
This year's second quarter results included the write-off of non-recurring start-up costs of $2,121,000 related to the launch of Superior's new aluminum suspension components business. Profits from the Company's joint venture aluminum wheel manufacturing operation in Hungary were included in miscellaneous income.
"This was an exceptional quarter. Capacity utilization exceeded our expectations, and wheel shipments benefited from high production of cars and light trucks by our OEM customers. In addition, the launch of several new wheel programs during the period aided our shipments," said Chairman and President, Louis L. Borick.
At June 30, 2002, Superior reported working capital of $256.9 million, including cash and short-term investments of $142.2 million, and no debt.
First Half Results
For the six months ended June 30, 2002, net income increased 30% to $38,126,000, or $1.42 per diluted share. Net income for last year's first half was $29,313,000, or $1.11 per diluted share. Revenue increased 21% to $398,500,000 from $328,000,000 for the first half of 2001.
Growth Drives Profit Margins Higher
"Superior's culture of excellence -- in design, engineering and manufacturing -- and our intense focus on controlling costs are the keys to our success. We support our customers with the product pricing and product quality they expect from the industry leader. That's why we continue to win large new and replacement aluminum wheel supply contracts from major OEM customers and increase our market share. Our capacity modernization and expansion programs position Superior for further gains in efficiency and growth in earnings in the years ahead," Borick said.
"Superior's strong second quarter results demonstrate the operating leverage that we have built into our company. Net income as a percentage of sales improved to 9.9% for this year's second quarter from 8.2% for the same period last year, reflecting efficiency in our plant operations. We are especially pleased with the outstanding job being turned in by the managers and staff at our newest facilities, which are quickly moving up the learning curve and producing results that meet or exceed our expectations," added Executive Vice President, Steven J. Borick.
Stock Repurchase Update
Superior has repurchased 4,416,000 shares of its common stock since 1995, including 23,500 shares repurchased during the second quarter of 2002. 3,585,000 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, Subaru 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 Six Months Ended
June 30 June 30
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2002 2001 2002 2001
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NET SALES $ 211,968 $ 161,907 $ 398,500 $ 328,000
Costs and Expenses
Cost of Sales 174,716 137,074 329,419 273,278
Selling and
Administrative
Expenses 6,393 4,876 11,533 9,743
Start-up and
Pre-production
Costs 2,121 2,524 3,774 5,494
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INCOME FROM OPERATIONS 28,738 17,433 53,774 39,485
Interest Income, net 654 1,464 1,439 2,771
Miscellaneous
Income, net 2,844 1,415 3,442 2,328
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INCOME BEFORE TAXES 32,236 20,312 58,655 44,584
Income Tax Expense 11,282 6,956 20,529 15,271
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NET INCOME $ 20,954 $ 13,356 $ 38,126 $ 29,313
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DILUTED EARNINGS PER
SHARE $ 0.78 $ 0.51 $ 1.42 $ 1.11
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WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 26,967,000 26,383,000 26,786,000 26,321,000
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SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
As of June 30
2002 2001
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CURRENT ASSETS $ 348,726 $ 269,461
PROPERTY, PLANT AND EQUIPMENT, net 224,623 231,855
OTHER ASSETS 37,215 29,091
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$ 610,564 $ 530,407
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CURRENT LIABILITIES $ 91,834 $ 84,311
LONG-TERM LIABILITIES 17,496 19,239
SHAREHOLDERS' EQUITY 501,234 426,857
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$ 610,564 $ 530,407
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