Superior Industries International Q4 Results Exceed Analysts' Expectation
3 February 1999
Superior Industries International Fourth-Quarter Results Exceed Analysts' Expectation by 11% as Net Income Increases 25% to a Record $0.71 Per Diluted Share on Record Revenue
VAN NUYS, Calif.--Feb. 3, 1999--Superior Industries International Inc. Wednesday announced that net income for the fourth quarter ended Dec. 31, 1998 increased 25 percent to a record $19,547,000, or $0.71 per diluted share, on record revenue of $152,685,000.
This compares with net income of $15,648,000, or $0.56 per diluted share, on revenue of $150,905,000 for the fourth quarter of 1997.
"As we anticipated, Superior's business came roaring back with the settlement of the GM strike last summer. Earnings for the fourth quarter exceeded analysts' expectations by almost 11 percent. OEM unit wheel shipments, which were up over 9 percent, set a new quarterly record, while revenues were reduced by lower pass-through aluminum selling prices," a company spokesman said.
For the 12 months ended Dec. 31, 1998, net income was $52,319,000, or $1.88 per diluted share. This compares with net income for 1997 of $55,389,000, or $1.96 per diluted share. Revenue was $539,431,000 compared with $549,131,000 for the prior year. As a result, Superior's revenue and earnings for 1998 were only slightly below last year's records despite the strike at GM that affected performance in the second and third quarters.
The spokesman added: "As evidenced by our rapid recovery from the GM strike, our commitment to quality and industry leadership served us well during the year. We won a number of significant new aluminum- wheel supply contracts that set the stage for further growth in 1999, including Ford's Windstar and GM's new GMT800 full-size light-truck program, widely considered to be GM's most important vehicle launch in recent years.
"We also made progress in our program to expand Superior's non-wheel aluminum automotive-components business. Given the significant weight and performance advantages of aluminum vs. steel components in suspension and similar applications, this represents an important new growth opportunity.
"In addition, we successfully ramped up production at our joint- venture manufacturing facility in Tatabanya, Hungary, where production of lightweight forged wheels for Audi and BMW is nearing capacity. Shipments of low-pressure cast wheels from this facility also began during the year.
"Based on the progress we are making toward winning additional orders from European automotive manufacturers, we have begun to expand the casting capacity at this facility. We also are in the process of doubling capacity at our facility in Chihuahua, Mexico to 2 million units annually. And we continued to build volume and enhance profitability at our OEM chrome-plating and bright-polishing facility in Fayetteville, Ark."
Superior purchased approximately 93,000 of its common shares in open-market transactions during the fourth quarter for a total of 749,000 shares under a 2 million share repurchase authorization.
Superior supplies aluminum wheels and other aluminum components 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, which 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 filings 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 12 Months Ended
Dec. 31 Dec. 31
1998 1997 1998 1997
Net Sales $ 152,685 $ 150,905 $ 539,431 $ 549,131
Costs and
Expenses
Cost of Sales 117,390 118,382 439,327 440,961
Selling and
Administrative
Expenses 4,821 4,922 19,758 19,986
Income From
Operations 30,474 27,601 80,346 88,184
Interest
Income, net 1,278 790 4,287 2,170
Miscellaneous
Expense, net 1,564 4,037 3,832 4,146
Income
Before Taxes 30,188 24,354 80,801 86,208
Income
Tax Expense 10,641 8,706 28,482 30,819
Net Income $ 19,547 $ 15,648 $ 52,319 $ 55,389
Earnings
Per Share:
Basic $ 0.71 $ 0.56 $ 1.89 $ 1.97
Diluted $ 0.71 $ 0.56 $ 1.88 $ 1.96
Weighted
Average and
Equivalent
Shares
Outstanding:
Basic 27,357,000 27,898,000 27,671,000 28,069,000
Diluted 27,457,000 28,065,000 27,818,000 28,221,000
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SUPERIOR INDUSTRIES INTERNATIONAL INC.
SUMMARIZED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
As of Dec. 31,
1998 1997
Current Assets $235,043 $199,846
Property, Plant and Equipment, net 158,194 147,989
Other Assets 33,350 34,844
$426,587 $382,679
Current Liabilities $ 88,805 $ 65,415
Long-Term Debt 673 1,344
Other Long-Term Liabilities 25,125 28,504
Shareholders' Equity 311,984 287,416
$426,587 $382,679