Superior Industries International Third-Quarter Results
15 October 1998
Superior Industries International Third-Quarter Results Exceed Analysts' Expectations; Record Fourth Quarter Anticipated
VAN NUYS, Calif.--Oct. 15, 1998--Superior Industries International Inc. Thursday announced that revenue for the third quarter ended Sept. 30, 1998, was $112,245,000, compared with $130,243,000 for the third quarter of 1997.
Net income was $7,677,000, or 28 cents per diluted share, compared with net income of $13,119,000, or 47 cents per diluted share, for the same period a year earlier. The decline in revenue and net income was primarily due to the work stoppage at General Motors that reduced shipments of Superior's aluminum road wheels to GM for the 1998 second and third quarters.
For the nine months ended Sept. 30, 1998, revenue was $386,746,000, compared with $398,226,000 for the first nine months of 1997. Net income was $32,772,000, or $1.17 per diluted share, compared with $39,741,000, or $1.41 per diluted share, for the first nine months of last year.
A company spokesman said that aluminum wheel shipments picked up rapidly with the settlement of the GM strike. "Superior's third-quarter results exceeded analysts' expectations. Based on current bookings, we expect records earnings for the fourth quarter, which is shaping up to be the best quarter in Superior's history," the spokesman added.
The spokesman said that Superior has resumed volume production and shipments of aluminum road wheels to General Motors for GM's new GMT800 full-size light truck program, including Suburban and Tahoe/Yukon. Superior is the principal wheel supplier for the GMT800. Superior has also ramped up production for additional GM vehicles for which it provides wheels, including Oldsmobile Intrigue and Cadillac DeVille.
The spokesman also said that shipments of aluminum road wheels under OEM supply programs with Ford remain strong, particularly with Superior's new contract for the Windstar. In addition, the spokesman said that international business continues to grow, highlighted by Auto Alliance's Cougar and increased volume for Nissan.
"Our strategy to build Superior's position in the worldwide OEM aluminum wheel market continues to pay dividends. We currently are evaluating a number of opportunities to supply wheels for additional nameplates for a variety of manufacturers. We also are aggressively seeking to expand our non-wheel aluminum automotive components business," the spokesman said.
"Given the significant weight and performance advantages of aluminum vs. steel components in suspension and similar applications, this represents another exciting growth opportunity that may ultimately rival Superior's aluminum road wheel business."
Superior purchased approximately 319,000 of its common shares in open market transactions during the third quarter for a total of 656,000 shares under a 2 million share repurchase authorization.
Superior supplies aluminum wheels to Ford, General Motors, Chrysler de Mexico, BMW, Volkswagen, Audi and Jaguar, as well as various Japanese auto manufacturers including Toyota, Mazda, Nissan and Isuzu. The company is also a leading manufacturer of accessory products for the national automotive aftermarket.
The statements contained in this release that are not historical facts may be deemed to constitute forward-looking statements. Actual results might differ materially from those projected in such statements due to a number of risks and uncertainties, including, without limitation, demand and competition for the company's products, and other risks or uncertainties detailed in the company's filing with the Securities and Exchange Commission.
SUPERIOR INDUSTRIES INTERNATIONAL INC.
Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
1998 1997 1998 1997
NET SALES $ 112,245 $ 130,243 $ 386,746 $ 398,226
Costs and Expenses
Cost of Sales 95,694 105,699 321,937 322,579
Selling and
Administrative Expenses 4,268 5,020 14,937 15,064
INCOME FROM OPERATIONS 12,283 19,524 49,872 60,583
Interest Income, net 1,062 675 3,009 1,380
Miscellaneous Expense, net 1,489 105 2,268 109
INCOME BEFORE INCOME TAXES 11,856 20,094 50,613 61,854
Income Tax Expense 4,179 6,975 17,841 22,113
NET INCOME $ 7,677 $ 13,119 $ 32,772 $ 39,741
DILUTED EARNINGS PER SHARE $ 0.28 $ 0.47 $ 1.17 $ 1.41
WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 27,670,000 28,196,000 27,933,000 28,277,000
SUPERIOR INDUSTRIES INTERNATIONAL INC.
Consolidated Balance Sheets
(Unaudited)
(Dollars in Thousands)
Sept. 30
1998 1997
CURRENT ASSETS $ 207,014 $ 186,929
PROPERTY, PLANT AND EQUIPMENT, net 149,040 151,185
OTHER ASSETS 36,370 37,029
$ 392,424 $ 375,143
CURRENT LIABILITIES $ 67,982 $ 70,374
LONG-TERM DEBT 1,129 1,763
OTHER LONG-TERM LIABILITIES 26,293 28,909
SHAREHOLDERS' EQUITY 297,020 274,097
$ 392,424 $ 375,143
Notes: Per share amounts are based on the weighted average number
of shares of common stock and common stock equivalents outstanding
during the period.
Interim financial reporting standards require management to make
estimates based on assumptions of future events and circumstances that
may affect future operating results as the ultimate outcome becomes
known.