Superior Industries Reports 2008 Third Quarter Financial Results - aftermarketNews

Superior Industries Reports 2008 Third Quarter Financial Results

Superior Industries International has reported a net loss of $14.2 million, or 53 cents per share, for the third quarter of 2008, which included a $5 million pretax charge for the impairment of long-lived assets related to the previously announced closing of the company's Pittsburg, Kan., facility.

VAN NUYS, Calif. — Superior Industries International has reported a net loss of $14.2 million, or 53 cents per share, for the third quarter of 2008, which included a $5 million pretax charge for the impairment of long-lived assets related to the previously announced closing of the company’s Pittsburg, Kan., facility. This compares with a net loss of $739,000, or 3 cents per share, for the third quarter of 2007.

Superior said that third quarter demand was severely impacted by various customer restructuring actions and market conditions, including significant reductions in production of light trucks and SUVs, delaying the launch of key 2009 model-year light truck programs, vehicle manufacturing rationalization and realignment and model mix changes designed to accelerate the movement toward more fuel-efficient passenger cars and crossover-type vehicles. To address the industry-wide reduction in demand for aluminum wheels, Superior announced in August that it would close its manufacturing facility in Pittsburg, Kan., in December 2008 and reduce its workforce by 755 positions.

Consolidated net sales decreased 28 percent to $163.4 million from $227.6 million for the third quarter of 2007.

Negative gross profit was $11.2 million, or (6.9) percent of net sales, compared to gross profit of $5.3 million, or 2.3 percent of net sales, for the third quarter of 2007. Sharply lower customer requirements during the 2008 third quarter resulted in wheel production decreasing 21 percent versus the second quarter of 2008 and 25 percent compared to the same period a year ago, significantly impacting absorption of plant fixed costs. This, along with lost margin on the decrease in unit shipments, contributed to the drop in gross profit.

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