VAN NUYS, Calif. – Superior Industries International has reported net income of $6.4 million, or 23 cents per diluted share for the second quarter of 2012. This compares with net income of $14.7 million, or 53 cents per diluted share, for the second quarter of 2011.
For the second quarter, consolidated net sales increased 3 percent to $215.1 million from $208.7 million in the comparable period a year ago. Unit shipments increased 14 percent to 3.3 million from 2.9 million in last year’s second quarter. Gross profit was $15.7 million, or 7 percent of net sales, compared with $19.5 million, or 9 percent of net sales, in the comparable period a year ago.
The company said the average unit selling price decreased 10 percent in the second quarter of 2012, largely attributable to a decline in average aluminum price, which is generally passed through to customers, along with a weaker product mix and a decline in the value of the Mexican peso relative to the U.S. dollar. The decline in gross profit and margin percentage reflected the weaker product mix, along with manufacturing challenges in the U.S. and the negative impact from foreign currency rates. Superior said all manufacturing facilities operated at or near full capacity to meet the increase in unit volume. Higher operating costs in the U.S. offset a strong performance at the company’s facilities in Mexico.
“I am pleased that our factories, especially our plants in Mexico, met a significant increase in demand for our product despite already operating at very high utilization rates,” said Steven Borick, chairman, CEO and president. “However, when considering the ever-increasing product standards that we must meet in the context of today’s pricing, we still are incurring significant operating and profitability challenges in our U.S. manufacturing facilities. We continue to invest in capital equipment and talent to address these challenges and remain confident we can improve the performance of our U.S. plants that today remain critical to meeting the needs of our customers.”
Consolidated income from operations decreased $4.7 million in the 2012 second quarter to $8.2 million, or 4 percent of net sales, from $12.9 million, or 6 percent of net sales, in the comparable period last year.
Consolidated net sales for the first half of 2012 increased 5 percent to $417.5 million, from $398.3 million for the comparable period a year ago. Consolidated gross profit for the first half of 2012 decreased to $32.8 million, or 8 percent of net sales, compared with $36.4 million, or 9 percent of net sales, for the comparable period a year ago. Consolidated income from operations was $18.4 million, or 4 percent of net sales for the first half of 2012, versus $23 million, or 6 percent of net sales, in 2011.
