VAN NUYS, Calif. – Superior Industries International has announced net income of $4.9 million, or 18 cents per diluted share, for the first quarter of 2013. This compares with net income of $6.7 million, or 25 cents per diluted share, for the first quarter of 2012.
Net sales for the 2013 first quarter increased 2 percent to $206.4 million from $202.4 million in the comparable period a year ago, with the majority of improvement reflecting a stronger sales mix. Unit shipments were unchanged at 3.1 million for both periods.
Gross profit for the 2013 first quarter was $13.5 million, or 7 percent of net sales, compared with $17.1 million, or 9 percent of net sales, in the comparable period last year. Certain costs, such as labor and operating supplies, exceeded that which incurred in the first quarter of 2012, especially at the company’s largest and oldest U.S. facility. The cost for new wheel development activity also was higher than a year ago. Capacity utilization rates remained at high levels, the company noted.
“Ongoing strength of the auto market, combined with Superior’s capacity limitations, continues to create operating challenges, especially at our largest manufacturing facility in the U.S.,” said Steven Borick, chairman, CEO and president. “We currently are making significant enhancements to our existing operations, with an objective of improving process capability and operating efficiencies, and are encouraged that compared to the fourth quarter of 2012, our income performance improved for the first quarter despite lower unit sales volume.
“In addition to accelerating the pace of capital investments in existing facilities this year, we also recently announced that we will build a new manufacturing facility in Chihuahua, Mexico, that initially is expected to increase capacity by 15 to 20 percent. We are confident these investments will enable us to pursue the growth opportunities afforded by the strengthened automotive sector and to achieve our ongoing goal of enhancing shareholder value,” he added.
Superior said it will invest approximately $125 million to $135 million to construct and equip the new facility, which will have an initial capacity to produce between 2 million and 2.5 million wheels a year. The company currently produces about 12.5 million wheels annually. Construction is anticipated to be complete in mid-2015.
