Superior Industries International Second-Quarter Net Income Increases 56%
15 July 1999
Superior Industries International Second-Quarter Net Income Increases 56% to a Record $0.71 Per Share as Revenue and Unit Shipments Set New All-Time Highs
VAN NUYS, Calif.--July 15, 1999--Superior Industries International Inc. announced today that net income for the three months ended June 30, 1999, increased 56% to a second-quarter record $19,211,000, or $0.71 per diluted share, the most profitable second quarter in the Company's history and well ahead of analysts' expectations.
Unit shipments of aluminum road wheels to original equipment manufacturers (OEM) increased 20% to an all-time record. This contributed to a 12% increase in revenue to $155,029,000, also an all-time high, despite lower pass-through aluminum selling prices. For the second quarter of 1998, net income was $12,304,000, or $0.44 per diluted share, on revenue of $138,130,000.
For the first half of 1999, net income increased 38% to a record $34,705,000, or $1.28 per diluted share. This compares to net income of $25,095,000, or $0.89 per diluted share, for last year's first half. Revenue increased 6% to a record $291,938,000 from $274,501,000 for the first six months of 1998.
During the second quarter Superior won multi-year aluminum wheel supply contracts from major global auto manufacturers with an annual value of more than $250 million. These contract wins are in addition to previously-announced new orders and include both new incremental business as well as replacement business for wheels Superior currently manufactures.
The Company also recently won an important contract with significant follow-on potential to supply aluminum suspension components for a major global automotive manufacturer. Reflecting this surge in demand, Superior is planning for construction of a new manufacturing plant. This is in addition to scheduled capacity expansion at its facilities in Van Nuys; Chihuahua, Mexico; and Tatabanya, Hungary.
"The momentum in both our aluminum wheel and our new aluminum suspension components business clearly is building, and we are optimistic about the Company's continued strong performance in the second half," a spokesman said.
"Our OEM customers know that Superior delivers the highest quality products built to exacting specifications, in large volume, on time and on budget.
"Our well-earned reputation for engineering and manufacturing excellence is helping us capture a growing share of the OEM aluminum wheel market and establish our position in the emerging market for non-wheel aluminum automotive components, a new long-term growth opportunity that builds on aluminum's demonstrated weight and performance advantages over traditional steel components," the spokesman said.
Superior purchased approximately 169,000 shares in open market transactions during the second quarter, for a total of 1,154,000 shares under its most recent 2 million share repurchase authorization.
Superior supplies aluminum wheels and other aluminum components to Ford, General Motors, Chrysler de Mexico, BMW, Volkswagen, Audi, Rover, 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 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 Six Months Ended
June 30 June 30
1999 1998 1999 1998
NET SALES $155,029 $138,130 $291,938 $274,501
Costs and Expenses
Cost of Sales 121,052 114,709 229,310 226,243
Selling and
Administrative
Expenses 5,236 5,286 10,367 10,669
INCOME FROM
OPERATIONS 28,741 18,135 52,261 37,589
Interest Income,
net 1,437 1,057 2,486 1,947
Miscellaneous
Expense, net 509 189 1,149 779
INCOME BEFORE TAXES 29,669 19,003 53,598 38,757
Income Tax Expense 10,458 6,699 18,893 13,662
NET INCOME $19,211 $12,304 $34,705 $25,095
DILUTED EARNINGS
PER SHARE $ 0.71 $ 0.44 $ 1.28 $ 0.89
WEIGHTED AVERAGE
AND EQUIVALENT
SHARES
OUTSTANDING 27,092,000 27,998,000 27,134,000 28,061,000
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
As of June 30
1999 1998
CURRENT ASSETS $244,870 $214,183
PROPERTY, PLANT
AND EQUIPMENT, net 159,592 146,422
OTHER ASSETS 32,085 37,208
$436,547 $397,813
CURRENT LIABILITIES $ 79,655 $ 69,560
CAPITALIZED LEASES 526 1,200
OTHER LONG-TERM
LIABILITIES 23,375 26,588
SHAREHOLDERS' EQUITY 332,991 300,465
$436,547 $397,813
(1) Per share amounts are based on the weighted average number of
shares of common stock and common stock equivalents outstanding
during the period.
(2) 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.
(3) Certain statements included in this Shareholder Report that are
not historical in nature are forward-looking statements within
the meaning of the Private Securities Legislation Act of 1995.
Forward-looking statements regarding the Company's future
performance and financial results are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those set forth in the forward-looking statements
due to a variety of factors. Factors that may impact such
forward-looking statements include, among others, changes in the
condition of the industry, changes in general economic conditions
and the success of the Company's strategic and operating plans.