Superior Industries Reports Second Quarter Results
VAN NUYS, Calif.--July 17, 2003--Superior Industries International, Inc. announced today that operating results for the second quarter and first six months of 2003 were in-line with the company's previous guidance."We had expected a relatively soft second quarter because of production cut-backs by some of our OEM customers during the period," said President and COO Steve Borick. "We remain optimistic about the outlook for the second-half based on significant new aluminum wheel program awards and additional new and replacement programs still in the pipeline, and the continued growth of our market share. We believe that Superior is ready to meet our customers' demands for higher volume at competitive prices."
Second Quarter Results
For the three months ended June 30, 2003, revenue decreased 0.6% to $210,787,000 from $211,968,000 a year earlier. Unit wheel shipments decreased 2%. Net income was $17,677,000, or $0.66 per diluted share, compared to $20,954,000, or $0.78 per diluted share, for the second quarter of 2002.
Beginning in 2003, Superior's aluminum suspension components business was included in the determination of gross profit and not shown as a separate line item. Operating results for the second quarter of 2003 included a loss from this business of approximately $2,700,000. The company's share of profits from its joint venture aluminum wheel manufacturing operation in Hungary for this year's second quarter was $2,800,000.
First Half Results
For the six months ended June 30, 2003, revenue increased 6% to $422,279,000 from $398,500,000 for the same period of 2002. Unit wheel shipments increased 0.8%. Net income increased 4.8% to $39,943,000, or $1.48 per diluted share, from $38,126,000, or $1.42 per diluted share, for last year's first half.
Operating results for this year's first half included a loss from the suspension components business of approximately $5,200,000. The company's share of profits from its joint venture in Hungary for this year's first half was $4,700,000.
At June 30, 2003, Superior had working capital of $275,700,000, including cash and short-term investments of $152,800,000, and no debt.
New Program Wins
During the second quarter, Superior announced that it was named aluminum wheel supplier for Ford Motor Company's F-150 truck, beginning with the 2004 model year. The 2004 F-150 is an all-new version of the country's best-selling truck for the past 25 years and best-selling vehicle of any type for the past 20 years. Superior has already begun shipments of five different wheel styles for the 2004 F-150. "This is one of the largest contracts in Superior's history. It significantly expands our production plans for the 2004 model year," Borick said.
Superior also was awarded additional aluminum wheel business from Mazda Motor Corporation. The company anticipates a significant increase in shipments of wheels for the 2004 Mazda 6 sedan. In addition, Superior has begun shipping three new cast aluminum wheels to Mitsubishi Motors North America, Inc. for the 2004 model year Endeavor sport utility vehicle. Borick noted that these contracts represent a meaningful expansion of Superior's global customers.
Stock Repurchase Update
Superior has repurchased 4,599,300 shares of its common stock since 1995, including 26,300 shares repurchased during the second quarter of 2003. Approximately 3,401,000 shares remain to 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 Six Months Ended
June 30 June 30
2003 2002 2003 2002
-------- -------- -------- --------
NET SALES $210,787 $211,968 $422,279 $398,500
Costs and Expenses
Cost of Sales 181,920 174,716 356,004 329,419
Selling and
Administrative Expenses 5,666 6,393 11,451 11,533
Aluminum Components
Start-up Costs -- 2,121 -- 3,774
INCOME FROM OPERATIONS 23,201 28,738 54,824 53,774
Equity in Earnings
of Joint Ventures 2,765 1,765 4,699 2,537
Interest Income, net 729 654 1,641 1,439
Miscellaneous Income, net 500 1,079 287 905
INCOME BEFORE INCOME TAXES 27,195 32,236 61,451 58,655
Income Tax Expense 9,518 11,282 21,508 20,529
NET INCOME $17,677 $20,954 $39,943 $38,126
EARNINGS PER SHARE
Basic $0.66 $0.79 $1.50 $1.46
Diluted $0.66 $0.78 $1.48 $1.42
WEIGHTED AVERAGE AND
EQUIVALENT SHARES OUTSTANDING
Basic 26,665,000 26,367,000 26,631,000 26,168,000
Diluted 26,986,000 26,967,000 26,971,000 26,786,000
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
June 30
2003 2002
-------- --------
CURRENT ASSETS $384,217 $348,726
PROPERTY, PLANT AND EQUIPMENT, net 264,134 224,623
INVESTMENTS AND OTHER ASSETS 43,758 37,215
$692,109 $610,564
CURRENT LIABILITIES $108,498 $91,834
LONG-TERM LIABILITIES 19,955 17,496
SHAREHOLDERS' EQUITY 563,656 501,234
$692,109 $610,564