Superior Industries Reports Third Quarter Results
VAN NUYS, Calif.--Oct. 1, 20037, 2003--Superior Industries International, Inc. today announced operating results for the third quarter and first nine months of 2003 in-line with the company's revised estimates reported on August 28, 2003.Third Quarter Results
For the three months ended September 30, 2003, revenue was $187,365,000. This compares to revenue of $187,364,000 for the third quarter of 2002. Unit wheel shipments decreased 2.0%. Net income was $10,726,000, or $0.40 per diluted share, compared to $17,693,000, or $0.65 per diluted share, for the third 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 third quarter of 2003 included a loss from this business of approximately $3,000,000. The company's share of profits from its joint venture aluminum wheel manufacturing operation in Hungary for this year's third quarter was $1,855,000.
Nine Month Results
For the nine months ended September 30, 2003, revenue increased 4.1% to $609,644,000 from $585,864,000 for the same period of 2002. Unit wheel shipments decreased 0.1%. Net income was $50,669,000, or $1.88 per diluted share. This compares to net income for the first nine months of 2002 of $55,819,000, or $2.08 per diluted share.
Operating results for this year's first nine months included a loss from the suspension components business of approximately $8,200,000. The company's share of profits from its joint venture in Hungary for this year's first nine months was $6,558,000.
At September 30, 2003, Superior had working capital of $279,400,000, including cash and short-term investments of $137,800,000, and no debt.
Factors Impacting Results
President and COO Steve Borick said, "Our third quarter unit shipments and revenue were on track but factory utilization was lower and expenses were higher than anticipated. As previously announced, during the quarter we incurred significant one-time expenses for Superior's multi-plant expansion programs and record number of new product launches. In addition, the Company is developing long-term plans for major automation and cost reduction initiatives designed to offset the pricing reductions that our customers require. While these events affected our third quarter performance, we expect the cost pressures to be alleviated and we are confident that our capacity expansion, modernization and cost reduction programs will be successful in positioning the company for continued growth. Because of the investments we are making today, Superior will be ready to meet our customers' demands for higher volumes at competitive prices.
"We are optimistic about the outlook for the business. Production under several new aluminum wheel program awards is beginning to ramp up, including significant volumes for Ford Motor Company's all-new F-150 truck, which is one of the largest contracts in Superior's history. We also anticipate a significant increase in shipments of wheels for our international customers, including the 2004 Mazda 6 sedan and three new cast aluminum wheels to Mitsubishi Motors North America, Inc. for the 2004 model year Endeavor sport utility vehicle. Additional new and replacement programs are still in the pipeline as we continue to build Superior's market share."
Stock Repurchase Update
Superior has repurchased 4,599,300 shares of its common stock since 1995, including 107,300 shares repurchased during 2003. Approximately 3,401,000 shares remain to be repurchased under the March 2000 Board of Directors' authorization.
Conference Call
Superior will host a conference call beginning at 8:00 AM PT (11:00 AM ET) today that will be broadcast on the company's website. Investors, analysts, stockholders, news media and the general public are invited to listen to the webcast. Replays of the webcast will be available at this same Internet address shortly after the conclusion of the conference call.
In addition to reviewing the company's third quarter results, during the conference call the company also plans to discuss the outlook for the balance of 2003, as well as other financial and operating matters. Additionally, the answers to questions posed to management during the call might disclose additional material information.
About Superior Industries
Superior supplies aluminum wheels and other aluminum automotive components to Ford, General Motors, DaimlerChrysler, Audi, BMW, Isuzu, Jaguar, Land Rover, Mazda, MG Rover, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. For additional information, visit www.supind.com.
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
NET SALES $187,365 $187,364 $609,644 $585,864
Costs and Expenses
Cost of Sales 167,974 155,319 523,978 484,738
Selling and
Administrative
Expenses 5,716 5,637 17,167 17,170
Aluminum Components
Start-up Costs - 2,196 - 5,970
INCOME FROM OPERATIONS 13,675 24,212 68,499 77,986
Equity in Earnings of
Joint Ventures 1,853 2,010 6,553 4,547
Interest Income, net 533 947 2,174 2,386
Miscellaneous Income,
net 441 51 727 956
INCOME BEFORE INCOME
TAXES 16,502 27,220 77,953 85,875
Income Tax Expense 5,776 9,527 27,284 30,056
NET INCOME $10,726 $17,693 $50,669 $55,819
EARNINGS PER SHARE
Basic $0.40 $0.67 $1.90 $2.12
Diluted $0.40 $0.65 $1.88 $2.08
WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING
Basic 26,683,000 26,581,000 26,649,000 26,305,000
Diluted 27,067,000 27,050,000 27,007,000 26,874,000
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)
September 30,
2003 2002
Current Assets $375,573 $368,098
Property, Plant and Equipment, net 261,952 227,993
Investments and Other Assets 44,690 35,700
$682,215 $631,791
Current Liabilities $96,153 $102,631
Long-Term Liabilities 18,366 17,990
Shareholders' Equity 567,696 511,170
$682,215 $631,791