VAN NUYS, Calif. — Superior Industries International has reported a sharply reduced net loss of $3.9 million, or 15 cents per share, for the fourth quarter of 2009, compared with a net loss of $20.1 million, or 75 cents per share, for the fourth quarter of 2008.
Gross profit (loss) improved to $12.2 million in the fourth quarter of 2009 from a loss of $3.7 million in the fourth quarter of 2008. Gross profit (loss) included certain severance and other non-impairment costs associated with plant closures and other workforce reductions of $4.3 million in 2009 and $5.4 million in 2008.
Net sales for the fourth quarter of 2009 increased 30.2 percent, on 23.0 percent higher unit shipments, compared with the third quarter of 2009.
“While one quarter alone does not necessarily indicate a turnaround trend, we were, nevertheless, encouraged by results for the 2009 fourth quarter,” said Steven Borick, chairman, chief executive officer and president. “Strong sales momentum was achieved with virtually all of our customers, demonstrating production volume increases that have continued since OEM plant shutdowns essentially ended in the third quarter of 2009.”
“During the past few years, we made some difficult decisions to reduce and manage costs, as well as rationalize production capacity in reaction to the significant business challenges presented by our major automotive customers. These actions enabled us to achieve improved operating margins for the 2009 fourth quarter. Moreover, the results were accomplished while incurring additional non-operating costs related primarily to our previously announced plant closures.”
Consolidated net sales decreased $6.9 million, or 4.5 percent, to $145 million from $151.9 million when comparing the fourth quarter of 2009 with the fourth quarter of 2008. Unit wheel shipments increased 9.9 percent during the same period, which equated to an increase in net sales of $14.8 million. However, average selling prices decreased approximately 14 percent, compared with the prior year, due principally to a reduction in the pass-through pricing of aluminum, which equated to a decrease in net sales of $24.5 million.
Gross profit was $12.2 million, or 8.4 percent of net sales, for the fourth quarter of 2009, compared with gross loss of $3.7 million, or 2.4 percent of net sales, for the fourth quarter of 2008. Severance and other non-impairment costs associated with plant closures and other workforce reductions totaled approximately $4.3 million in the fourth quarter of 2009 and $5.4 million in the fourth quarter of 2008. The improvement in gross profit reflected the steps taken to manage costs and rationalize production capacity, which reduced employment related and other costs significantly, compared with the same period a year ago.
Annual net sales decreased $336.1 million, or 44.5 percent, to $418.8 million from $754.9 million for 2008. Unit wheel shipments decreased 30.9 percent, compared with the prior year. The unit shipment decrease equated to $228.1 million of the decrease in net sales, while the decrease in the pass-through price of aluminum equated to $81.4 million of the decrease. The balance of the decrease in net sales was due primarily to the change in sales mix.
Gross loss in 2009 was $10.2 million, or 2.4 percent of net sales, compared to gross profit of $6.6 million or 0.9 percent of net sales. Cost of sales in 2009 included $21.3 million of costs associated with plant closures including severance costs, equipment dismantling and other plant closure related costs up from $6.3 million in 2008.
