Superior Industries Sets New Fourth Quarter Records for Revenue, Unit Shipments and Net Income
VAN NUYS, Calif.--Feb. 6, 2003--Superior Industries International, Inc. :| -- | Revenue Up 16% to $196.7 Million |
| -- | Net Income Up 46% to $0.83 Per Diluted Share |
| -- | 2002 Revenue Also Rises to New High of $782.6 Million |
| -- | 2002 Unit Wheel Shipments Exceed 14.5 Million |
| -- | 2002 Net Income Is Second-Highest on Record at $2.91 Per Diluted Share |
| -- | Cash and Short-Term Investments Exceed $155 Million |
Superior Industries International, Inc. announced today that it set new records for revenue, unit wheel shipments and net income in the fourth quarter of 2002, completing a year that exceeded analysts' estimates.
Fourth Quarter Results
For the three months ended December 31, 2002, revenue increased 16% to $196,735,000 from $168,978,000 on a 13% increase in unit wheel shipments. Net income increased 46% to $22,431,000, or $0.83 per diluted share, from $15,333,000, or $0.58 per diluted share, for the fourth quarter of 2001.
This year's fourth quarter results included the write-off of non-recurring start-up costs of $2,560,000 related to the launch of Superior's new aluminum suspension components business.
2002 Results
For the twelve months ended December 31, 2002, revenue increased 22% to a record $782,599,000 as wheel shipments rose 22% to exceed 14,500,000 units for the first time. Net income increased 41% to $78,250,000, or $2.91 per diluted share, the second-highest net income in Superior's history. For 2001, net income was $55,354,000, or $2.10 per diluted share.
This year's results included the write-off of non-recurring start-up costs of $8,530,000 related to the launch of Superior's new aluminum suspension components business. The company's share of profits from our joint venture aluminum wheel manufacturing operation in Hungary was $6,215,000.
At December 31, 2002, Superior had working capital of $271,818,000, including cash and short-term investments of $155,200,000, and no debt.
Contract Wins
Superior was awarded many significant new and replacement aluminum wheel supply contracts in 2002, the continuation of a long upward trend in this most important performance category.
From General Motors, Superior won new orders to supply aluminum wheels for the 2003 Hummer 2; painted and chrome wheels for the Buick LeSabre; and chrome wheels for the Cadillac Escalade. Key replacement contracts included redesigned wheels for the Chevrolet Silverado and GMC Sierra pickup trucks and the Cadillac Deville.
From Ford, Superior was named aluminum road wheel supplier for the 2003 model year Ford Expedition and Lincoln Navigator. This business consists of multiple wheel styles and represents both replacement and incremental new business for Superior. Superior has been a supplier of aluminum road wheels for the popular Expedition and Navigator models for several years.
From DaimlerChrysler, Superior was named aluminum road wheel supplier for the Chrysler PT Cruiser, the Dodge Dakota and Durango, and the Dodge Ram. Wheels for each of these programs are now in production.
Platform for Growth
Chairman and Chief Executive Officer Louis Borick said, "The combination of Superior's advanced manufacturing facilities, skilled employees, experienced management, and strong financial condition creates an efficient operating platform that is our most important asset. We invested heavily in expanding and improving our manufacturing capabilities, adding new plants and expanding and updating existing facilities. At the same time, our Culture of Excellence and employee training programs are yielding meaningful productivity gains and reducing costs throughout our organization. Superior's operating platform is international in scope, well financed, professionally managed, efficient and productive. We expect it to be the foundation for even greater success in the years to come. We are optimistic that 2003 will be another successful year for Superior."
Preparing for the Future
"During the past two years we increased manufacturing capacity by over 20% in our North American plants. With the steady expansion of our OEM wheel business, virtually all of this new capacity was successfully utilized for increased customer orders in this fiscal year. Because our book of business continues to grow as we win additional supply contracts, late in the year we announced a new expansion plan aimed at increasing annual capacity by a further 25% over the next two years. In addition, we added approximately 25% to the capacity of our joint venture manufacturing facility in Tatabanya, Hungary. As usual, we expect to finance these programs exclusively from internal sources," said President and COO Steve Borick.
The COO continued, "2002 was a great year for Superior. We are not satisfied. Superior is at the top of the industry, a position we achieved through many years of dedication and hard work. We aim to deliver sustained growth, high returns on invested capital, and value for shareholders. To get there, we know that Superior will have to adjust to the rapidly changing realities in the marketplace. The challenges we face are clear, both in the short term and the long term. We have the resources we need to meet these challenges -- strong market position, reputation, and financial position -- and the dedicated management committed to make it happen."
Stock Repurchase Update
Superior has repurchased 4,492,000 shares of its common stock since 1995, including 99,500 shares repurchased during 2002. Approximately 3,509,000 shares could still be repurchased 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, Audi, BMW, Isuzu, Land Rover, Mazda, MG Rover, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. 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
2002 2001 2002 2001
NET SALES $196,735 $168,978 $782,599 $643,395
Costs and Expenses
Cost of Sales 157,551 140,764 642,289 538,040
Selling and
Administrative Expenses 5,143 5,020 22,313 19,567
Start-up and
Pre-production Costs 2,560 1,753 8,530 9,682
INCOME FROM OPERATIONS 31,481 21,441 109,467 76,106
Interest Income 1,133 488 3,519 4,048
Equity Earnings
of Joint Ventures 1,714 1,392 6,260 3,941
Miscellaneous Income, net 181 (1) 1,138 94
INCOME BEFORE TAXES 34,509 23,320 120,384 84,189
Income Tax Expense 12,078 7,987 42,134 28,835
NET INCOME $22,431 $15,333 $78,250 $55,354
DILUTED EARNINGS PER SHARE $0.83 $0.58 $2.91 $2.10
WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 27,004,000 26,422,000 26,907,000 26,361,000
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
As of December 31
2002 2001
CURRENT ASSETS $368,941 $280,271
PROPERTY, PLANT AND EQUIPMENT, net 235,566 228,181
OTHER ASSETS 41,289 32,386
$645,796 $540,838
CURRENT LIABILITIES $97,123 $71,137
LONG-TERM LIABILITIES 18,242 20,960
SHAREHOLDERS' EQUITY 530,431 448,741
$645,796 $540,838