(314) 690-3570

Superior Industries Reports 2011 Financial Results For Full Year, Fourth Quarter

VAN NUYS, Calif., Mar 05, 2012 (BUSINESS WIRE) —
Superior Industries International, Inc.


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today
announced net income of $67.2 million for 2011, or $2.46 per diluted
share, compared with net income of $51.6 million, or $1.93 per diluted
share, in 2010.

Net sales for 2011 advanced 14 percent to $822.2 million from $719.5
million in 2010, reflecting an increase in unit volume and the
pass-through pricing of aluminum. Unit shipments reached 11.7 million in
2011, a 6 percent increase from 11.0 million units shipped in the prior
year. Gross profit declined to $67.1 million, or 8 percent of sales,
from $89.2 million, or 12 percent of sales, in 2010. Income from
operations decreased to $39.8 million from $59.8 million a year ago,
largely mirroring the gross profit decline.

The company said the decline in gross profit and margin percentage
reflected the impact of a weaker product mix and manufacturing
inefficiencies. Reflective of typical market lead-time, product mix
changes largely are the result of highly competitive program bidding
during 2009. While continuing to run at full capacity, manufacturing
inefficiencies translated into higher labor cost in order to meet
customer requirements. Other costs also were higher, including repairs
and maintenance, operating supplies and wheel development activities.

“Relatively healthy general market activity and vehicle production rates
tend to mask the challenges posed by ongoing changes in our product
mix,” said Steven J. Borick, Chairman, Chief Executive Officer and
President. “Our business today largely is the result of competitive
activity that originated two and three years ago. While the non-metal
pricing of our products trended down in 2011, manufacturing challenges
increased, as design complexity and cosmetic standards for our products
continue to rise.

“Very high capacity utilization tends to magnify the effect of operating
inefficiencies caused by equipment breakdowns, lower productivity on the
front end of product launches and other factors. These challenges were
more prevalent in our U.S. plants. We continue to focus on improving
factory operations, with actions ranging from continued addition of new
management and organizational competencies, to higher investment in
capital equipment.

“We believe we have great opportunities to improve our operating
performance. Although tangible results of our efforts likely will not be
visible in the shorter term, we are committed to implementing
improvements that we are confident will contribute to the longer-term
health of the business,” Borick added.

Full Year Results

Wheel sales in 2011 increased $103.5 million, or 15 percent, to $813.0
million from $709.5 million in 2010, as unit shipments increased by 6
percent compared with 2010. A change in average aluminum price, which
generally is passed through to customers, contributed approximately
$55.4 million to the sales increase and was the primary driver of a 7
percent increase in the average selling price of the company’s wheels.

Consolidated gross profit decreased $22.1 million in 2011 to $67.1
million, or 8 percent of net sales, compared with $89.2 million, or 12
percent of net sales, in 2010. The decline in gross profit and margin
percentage reflects a weaker product mix and higher manufacturing costs,
principally increased labor expense. While continuing to operate at full
capacity to meet customer demand, inefficiencies while commercializing
certain new product programs, equipment reliability problems and other
manufacturing process issues resulted in manufacturing cost per wheel
increasing.

Selling, general and administrative expenses were $25.9 million, or 3
percent of net sales, in 2011 compared with $28.3 million, or 4 percent
of net sales, in 2010. Compared with 2011, the 2010 expenses were higher
by $1.3 million due to costs to implement a new enterprise resource
planning (ERP) system and $900,000 in higher legal fees, while the 2011
results include a $1.5 million reduction in our deferred compensation
liability, offset partially by $700,000 higher medical self-insurance
costs.

Income before income taxes and equity earnings was $41.9 million in
2011, compared with $57.5 million for 2010, which included the $4.1
million loss on sale of the company’s joint venture investment in
Hungary. The company’s share of the Hungarian joint venture’s losses in
2010 was $2.8 million.

In 2011, the company had an income tax benefit of $25.2 million,
compared with $3.0 million of expense in 2010. The effective tax rate on
the 2011 pretax income was a benefit of 60.2 percent, compared with
expense of 5.2 percent in 2010. The 2011 income tax provision included a
$42.3 million benefit from released valuation allowances for U.S. and
Mexico deferred tax assets. This benefit was offset partially by the net
expense for income taxes on U.S. and foreign income and other current
period tax adjustments.

Fourth Quarter Results

Net sales for the 2011 fourth quarter advanced 14 percent to $216.8
million from $191.0 million for the previous year, principally
reflecting an 11 percent increase in units shipped and higher
pass-through pricing of aluminum. Unit shipments of 3.2 million in the
2011 fourth quarter exceeded those in the comparable quarter last year
by 305,000.

Gross profit for the 2011 fourth quarter declined to $18.1 million, or 8
percent of sales, from $29.0 million, or 15 percent of sales, for the
fourth quarter of 2010. The decline in gross profit and margin
percentage reflected, in part, the impact of a weaker product mix.
Higher factory costs included direct labor, repairs and maintenance and
operating supplies. Costs for wheel development activities also
increased in 2011 when compared to the prior year. Manufacturing
operations continued to operate at full capacity utilization.

Selling, general and administrative expenses for the fourth quarter of
2011 decreased $300,000 to $6.2 million, or 3 percent of net sales, from
$6.5 million, or 4 percent of net sales, for the comparable period in
2010.

Income before income taxes and equity earnings was $12.0 million in the
2011 fourth quarter, compared with $22.5 million for the fourth quarter
of 2010, with the change affected by the same items that impacted gross
profit comparisons above.

The company had an income tax benefit of $28.2 million in the fourth
quarter of 2011, as compared with income tax expense of $300,000 in the
fourth quarter of 2010. The fourth quarter of 2011 includes the income
tax benefit resulting from the release of valuation allowances
established in prior years against deferred tax assets. This benefit was
partially offset by the net expense for income taxes on U.S. and foreign
income.

Balance Sheet

At December 31, 2011, working capital was $335.7 million, including
cash, cash equivalents and short-term investments of $192.9 million. At
December 26, 2010, working capital was $311.1 million, including cash,
cash equivalents and short-term investments of $151.6 million. Superior
has no bank or other interest bearing debt.

Conference Call

Superior will host a conference call beginning at 10 a.m. PT (1 p.m. ET)
on Monday, March 5, 2012 that will be broadcast on the company’s
website,
www.supind.com .
Interested parties are invited to listen to the webcast. In addition, a
PowerPoint presentation will be posted on the company’s website and
referred to during the conference call. The webcast replay will be
available at the same Internet address approximately one hour after the
conclusion of the conference call and will be archived for approximately
one year.

During the conference call, the company’s management plans to review
operating results and discuss other financial and operating matters. In
addition, management may disclose material information in response to
questions posed by participants during the call.

About Superior Industries

Superior is the largest manufacturer of aluminum wheels for passenger
cars and light-duty vehicles in North America. From its five plants in
both the U.S. and Mexico, the company supplies aluminum wheels to the
original equipment market. Major customers include Ford, General Motors,
Chrysler, BMW, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. For
more information, visit
www.supind.com .

Forward-Looking Statements

This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, including those relating to the
company’s ability to improve operating performance and implementing
improvements that will contribute to the longer-term health of the
business, are based on current expectations, estimates and projections
about the company’s business based, in part, on assumptions made by
management. These statements are not guarantees of future performance
and involve risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking statements
due to numerous factors and risks discussed from time to time in the
company’s Securities and Exchange Commission filings and reports,
including the company’s Annual Report on Form 10-K for 2010. These
factors and risks relate to items including, but not limited to, general
automotive industry and market conditions and growth rates, general
domestic and international economic conditions, as well as the company’s
ability to improve operating performance. Such forward-looking
statements speak only as of the date on which they are made and the
company does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release.



                                                     SUPERIOR INDUSTRIES INTERNATIONAL, INC.
                                           Condensed Consolidated Statements of Operations (Unaudited)
                                                (Dollars in Thousands, Except Per Share Amounts)
                                                                           Three Months Ended                 Twelve Months Ended
                                                                               December 31                        December 31
                                                                    ---------------------------------  ---------------------------------
                                                                         2011             2010              2011             2010
                                                                    --------------  -----------------  --------------  -----------------
        Net Sales                                                    $    216,847    $    191,030       $    822,172    $    719,500
          Cost of Sales                                                   198,786         162,031            755,112         630,263
        -----------------------                                        ----------      ----------         ----------      ----------
        Gross Profit                                                       18,061          28,999             67,060          89,237
          Selling and Administrative Expenses                               6,235           6,549             25,888          28,285
          Impairment of Long-Live Assets and Other Charges                    997           1,003              1,337           1,153
        -----------------------------------------------------------    ----------      ----------         ----------      ----------
        Income From Operations                                             10,829          21,447             39,835          59,799
          Loss on Sale of Unconsolidated Affiliate                              -               -                  -          (4,110)
          Interest Income, net                                                206             196              1,101           1,604
          Other Income (Expense), net                                         955             903                990             190
        ----------------------------------------------                 ----------      ----------         ----------      ----------
        Income Before Income Taxes
           and Equity Earnings                                             11,990          22,546             41,926          57,483
          Benefit (Provision) for Income Taxes                             28,197            (288)           25,243          (2,993)
          Equity Losses of Unconsolidated Affiliates                            -               -                  -          (2,847)
        -----------------------------------------------------------    ----------      ----------         ----------      ---------- --
        Net Income                                                   $     40,187    $     22,258       $     67,169    $     51,643
        -------------                                               -- ----------   -- ----------      -- ----------   -- ----------
        Income Per Share:
              Basic                                                  $       1.48    $       0.83       $       2.48    $       1.93
              Diluted                                                $       1.48    $       0.82       $       2.46    $       1.93
        Weighted Average and Equivalent Shares
           Outstanding for Income Per Share:
              Basic                                                    27,161,000      26,753,000         27,052,000      26,704,000
              Diluted                                                  27,231,000      27,025,000         27,330,000      26,789,000
        -------------                                                  ----------      ----------         ----------      ----------
        




                             SUPERIOR INDUSTRIES INTERNATIONAL, INC.
                        Condensed Consolidated Balance Sheets (Unaudited)
                                     (Dollars in Thousands)
                                                          December 31,     December 31,
                                                              2011             2010
                                                         ---------------  ---------------
              Current Assets                                  $ 404,283        $ 381,612
              Property, Plant and Equipment, net                145,747          167,207
              Investments and Other Assets                       43,201           23,623
                                                                -------          -------
                                                              $ 593,231        $ 572,442
                                                         ------ -------   ------ -------
              Current Liabilities                             $  68,550        $  70,538
              Long-Term Liabilities                              64,166           88,422
              Shareholders' Equity                              460,515          413,482
                                                                -------          -------
                                                              $ 593,231        $ 572,442
                                                         ------ -------   ------ -------
        


SOURCE: Superior Industries International, Inc.



        
        Superior Industries 
        Investor Relations Line: 
        (818) 902-2701 
 
www.supind.com            or 
        Kerry Shiba 
        (818) 902-2700 
        or 
        PondelWilkinson Inc. 
        Robert Jaffe / Roger Pondel 
        (310) 279-5980 
        Investor@pondel.com
        


Copyright Business Wire 2012

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