VAN NUYS, CA — Superior Industries International has announced financial results for the fourth quarter and 2006.

President and CEO Steven Borick said, "Although Superior’s operating performance of 2006 did not measure up to our expectations, we made substantial progress in the multi-year restructuring program that is crucial to maintaining our leadership in the aluminum wheel business and achieving our long-term goals for growth and profitability. We have taken many decisive steps to reduce costs and realign capacity, including the closure of our chrome-plating operation in Fayetteville, AR, capacity reductions at our Van Nuys, CA, wheel plant, and closure of our Johnson City, TN, wheel plant effective in the first quarter of 2007, and the sale of our unprofitable aluminum suspension component business.

"Construction of our newest plant in Chihuahua, Mexico, is now complete, financed entirely from operating cash flow. This new facility, the most advanced wheel casting plant in the world, was designed to accommodate the growing demand for large-diameter wheels (18 inches and over) and enhance our competitive position in this important market segment.

"We remain confident in our strategy and in Superior’s future. While it will take time for Superior’s financial performance to reflect the many improvements we have made and will continue to make, we have the resources and the discipline we need to work through this period of transition into a new era of global competition in the automobile industry."

For the three months ended Dec. 31, 2006 revenue increased 3 percent to $212,169,000 compared to $205,901,000 for the fourth quarter of 2005. Unit wheel shipments decreased 9.3 percent, which reduced capacity utilization and profitability.

The fourth quarter of 2006 was also affected by start-up costs for the company’s new Chihuahua facility of $3,256,000 and restructuring expenses of $964,000. For the fourth quarter of 2005, start-up costs included in cost of goods sold amounted to $572,000.

SG&A expenses for the fourth quarter of 2006 increased to $6,818,000, which included non-cash, stock-based compensation expense of $720,000 and increases in professional fees. This compares to SG&A expenses of $5,079,000 for the fourth quarter of 2005.

For the fourth quarter of 2005, there was an impairment charge totaling $7,855,000, related to the discontinuance of our chrome-plating operation in Fayetteville, AR.

The effective tax rates in the fourth quarter of both years are the result of adjusting the year-to-date September rates to those calculated for the full years 2006 and 2005. Accordingly, for the fourth quarter of 2006, the effective income tax rate on the loss from continuing operations was a tax provision of $448,000 compared to a tax provision of $1,429,000 in the same quarter a year ago. These amounts reflect changes in the annual effective tax rates for the respective fiscal year, as calculated at the end of the year, including any required changes in the fourth quarter to the company’s tax reserves.

Superior’s share of profits from its joint venture aluminum wheel manufacturing operation in Hungary was $2,198,000 for the fourth quarter of 2006 compared to $1,138,000 a year earlier.

Consolidated net loss from continuing operations for the fourth quarter of 2006 was $4,446,000, or 17 cents per diluted share. This compares to net income from continuing operations of $2,282,000, or 9 cents per diluted share, for the fourth quarter of 2005. Net loss from the company’s discontinued suspension components business was $381,000, or 1 cent per diluted share, for the 2006 fourth quarter. This compares to a net loss from discontinued operations for the fourth quarter of 2005 of $22,225,000, or 84 cents per diluted share, which included a pre-tax asset impairment charge of $34 million.

Net loss for the fourth quarter of 2006, including the impact of the items discussed above, was $4,827,000, or 18 cents per diluted share. This compares to net loss for the fourth quarter of 2005 of $19,943,000, or 75 cents per diluted share.

At Dec. 31, 2006, working capital was approximately $233,500,000, including cash and short-term investments of approximately $78,100,000. Superior has no debt.

For the twelve months ended Dec. 31, 2006, revenue declined 1.8 percent to $789,862,000 compared to $804,161,000 for 2005. Unit wheel shipments declined 11.9 percent.

The year 2006 included start-up costs for the new Chihuahua facility of $10,054,000, restructuring expenses of $3,538,000, and non-cash, stock-based compensation expense of $622,000. Start-up costs for 2005 were $922,000.

SG&A expenses for 2006 increased to $25,679,000, which included non-cash, stock-based compensation expense of $2,410,000. This compares to SG&A expenses of $20,985,000 for 2005.

The company incurred a pre-tax charge of $4,470,000 in 2006 for the impairment of long-lived assets related to the planned closure of the Johnson City, TN, facility. As indicated above, there was a similar impairment charge in 2005 totaling $7,855,000, related to the discontinuance of our chrome-plating operation.

The effective tax rate on the income (loss) from continuing operations for the year 2006 was a benefit of $1,534,000, or 9.5 percent, compared to a provision of 37.1 percent for the year 2005. The tax benefit in the current period included required changes in the company’s tax reserves, which increased the tax benefit rate by 4.8 percent. Accounting judgment is required when reserving for probable disallowance of identified tax exposures, and accounting rules dictate that reserves can only be changed when substantive facts or specific events occur.

The company’s share of profits from its joint venture aluminum wheel manufacturing operation in Hungary was $4,897,000 for 2006 compared to $5,176,000 for 2005.

Net loss from continuing operations for 2006 was $9,578,000, or 36 cents per diluted share. This compares to net income from continuing operations for 2005 of $20,750,000, or 78 cents per diluted share. Income from the company’s discontinued suspension components operations in 2006 was $257,000, or 1 cent per diluted share, compared to a loss from discontinued operations in 2005 of $27,811,000, or $1.05 per diluted share, including the pre-tax asset impairment charge of $34 million.

Net loss for 2006 was $9,321,000, or 35 cents per diluted share. This compares to net loss for 2005 of $5,836,000, or 22 cents per diluted share, which included income for the cumulative effect of the change in accounting principle of $1,225,000, or 5 cents per diluted share.

For additional information about Superior Industries, visit: http://www.supind.com.