Superior Industries International Q3 Net Income Increases 89%
15 October 1999
Superior Industries International Third Quarter Net Income Increases 89% to a Record $0.54 Per Share; Exceeds Analysts' Expectations
VAN NUYS, Calif.--Oct. 15, 1999--Superior Industries International, Inc. announced the most profitable third quarter in the Company's history as revenue and unit shipments also set new records for the period.
Net income for the three months ended September 30, 1999 increased 89% to $14,489,000, or $0.54 per diluted share, exceeding analysts' expectations. Despite lower pass-through aluminum selling prices, revenue increased 17% to $131,430,000 on the strength of a 24% increase in unit shipments of aluminum road wheels to OEM customers.
For the third quarter of 1998, which was adversely affected by a strike at General Motors, net income was $7,677,000, or $0.28 per diluted share, on revenue of $112,245,000.
For the nine months ended September 30, 1999, net income increased 50% to $49,194,000, or $1.81 per diluted share, on revenue of $423,368,000. This compares to net income of $32,772,000, or $1.17 per diluted share, on revenue of $386,746,000 for the same period last year.
"So far this year Superior has been awarded new aluminum wheel supply contracts valued at more than $300 million, about equally divided between replacement programs and new business that we expect to deliver over the next three years. In addition, our effort to establish a toe-hold in the rapidly-growing market for aluminum suspension and related components is meeting with considerable success.
"We are building two new manufacturing facilities to accommodate our growth -- a second wheel plant in Mexico and a dedicated suspension and related components facility in Arkansas. This is in addition to scheduled capacity expansion at our existing plants.
"Superior's world class engineering and manufacturing excellence allows us to deliver the highest quality products built to exacting specifications, in large volume, on time and on budget. Our diligent pursuit of this formula over the years has earned us a growing share of our target markets for aluminum automotive wheels and components. We are bullish about the outlook for Superior Industries in the years ahead," a spokesman said.
Superior purchased approximately 188,000 shares in open market transactions during the third quarter, for a total of 1,342,000 shares under its most recent 2 million share repurchase authorization.
About Superior Industries
Superior supplies aluminum wheels and other aluminum components to Ford, General Motors, 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 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 Nine Months Ended
September 30 September 30
1999 1998 1999 1998
NET SALES $131,430 $112,245 $423,368 $386,746
Costs and Expenses
Cost of Sales 104,476 95,694 333,786 321,937
Selling and
Administrative
Expenses 5,172 4,268 15,539 14,937
INCOME FROM OPERATIONS 21,782 12,283 74,043 49,872
Interest Income, net 1,406 1,062 3,892 3,009
Miscellaneous Expense,
net 811 1,489 1,960 2,268
INCOME BEFORE TAXES 22,377 11,856 75,975 50,613
Income Tax Expense 7,888 4,179 26,781 17,841
NET INCOME $ 14,489 $ 7,677 $ 49,194 $ 32,772
DILUTED EARNINGS
PER SHARE $ 0.54 $ 0.28 $ 1.81 $ 1.17
WEIGHTED AVERAGE AND
EQUIVALENT SHARES
OUTSTANDING 26,998,000 27,670,000 27,144,000 27,933,000
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in Thousands)
As of September 30
1999 1998
CURRENT ASSETS $263,731 $207,014
PROPERTY, PLANT AND EQUIPMENT, net 157,076 149,040
OTHER ASSETS 33,612 36,370
$454,419 $392,424
CURRENT LIABILITIES $ 89,827 $ 67,982
CAPITALIZED LEASES 451 1,129
OTHER LONG-TERM LIABILITIES 23,694 26,193
SHAREHOLDERS' EQUITY 340,447 297,120
$454,419 $392,424
(a) Per share amounts are based on the weighted average number of
shares of common stock and common stock equivalents outstanding during
the period.
(b) 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.
(c) Certain statements included in this Shareholder Report which 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.