Superior Industries International has reported financial results for the first quarter ended March 27, 2016.
Don Stebbins, president and CEO, commented, “Our results in the first quarter are encouraging and a testament to the solid execution throughout the organization. The 25.3 percent increase in unit volume was driven by strong growth in our passenger car shipments on top of sustained increases in our light truck programs. In addition to higher unit volumes, our improved adjusted EBITDA was driven by improved cost performance, as we continued to benefit from the strategic changes to our manufacturing footprint, higher volumes in our new facility in Mexico and greater efficiencies across our manufacturing platform. These accomplishments would not be possible without the tireless efforts of our employees, who are the core of Superior’s success. I would like to thank them for all their hard work and continued dedication.”
First Quarter Results
For the first quarter of 2016, the company reported net income of $14.5 million, or 56 cents per diluted share, compared to net income of $4.3 million, or 16 cents per diluted share for the first quarter of 2015. Superior said the 233.7 percent increase in net income was largely driven by higher shipment volume as well as improved cost performance in the company’s manufacturing facilities, primarily driven by the new facility in Mexico operating near full capacity in the first quarter of 2016, compared to the ramp-up during the prior year period.
Gross profit for the first quarter of 2016 increased 147 percent to $27.7 million, compared to $11.2 million in the prior year period. Gross profit margin expanded 1350 basis points year-over-year to 27.1 percent of value-added sales compared to 13.6 percent of value-added sales in the first quarter of 2015. The increase in gross profit primarily reflects higher unit shipments as well as improved cost performance in the company’s manufacturing facilities, mainly driven by the new facility in Mexico operating near full capacity in the first quarter of 2016. Carrying costs related to the previously closed plant included in gross profit in the first quarter of 2016 were $0.6 million, compared to $1.9 million in the same period last year.
2016 Outlook
Based on current economic trends and industry outlook, Superior reaffirms its 2016 outlook provided on April 19, 2016. Net sales are expected to be in the range of $690 million to $710 million and reflective of a lower assumption for aluminum prices as compared to the company’s full year 2016 outlook provided on Jan. 14, 2016. Net sales include the value of aluminum and outsourced process costs passed through to customers.
