VAN NUYS, Calif. – Superior Industries International has reported net income of $22.8 million, or 83 cents per diluted share, for 2013, compared with net income of $30.9 million, or $1.13 per diluted share, for 2012. The change in net income primarily reflects an increased tax provision, amounting to $14 million for 2013, versus a tax provision of $3.6 million for the prior year.
Consolidated net sales for 2013 were $789.6 million, a 4 percent decline from $821.5 million for 2012. Gross profit for 2013 increased to $64.1 million, or 8 percent of net sales for 2013, from $60.6 million, or 7 percent of net sales for 2012. The 2012 gross profit included a $3.5 million non-cash benefit from resolution of a foreign consumption tax issue.
Superior said the net sales decline primarily was attributable to a decrease in unit shipments and a reduction in average selling price due to lower aluminum prices. The gross profit improvement in 2013 principally reflects efficiency improvements at the company’s U.S. operations due to improved equipment reliability and process control, resulting from capital reinvestments, more robust maintenance programs and other improvements in manufacturing practices.
“I continue to be pleased with the year-over-year gross margin growth being achieved, demonstrating that the ongoing investments being made in our existing manufacturing facilities have contributed important efficiency gains,” said Steven Borick, chairman, CEO and president. “While we still have opportunities to further improve our manufacturing performance and flexibility, the actions being taken at our existing manufacturing facilities, particularly in the U.S., are resulting in lower operating costs and productivity improvements.
“We are making excellent progress with the construction of our new, state-of-the-art manufacturing plant in Chihuahua, Mexico, which will add needed capacity, further enhance efficiencies and complement our three existing Mexico-based facilities. The project is on plan and scheduled for completion and initial testing by the end of this year, with commercial production anticipated for the first half of 2015,” Borick said.
As previously reported, Borick will retire as CEO from Superior on March 31, and the board is currently searching for his successor.
“As the time for my retirement draws nearer, I want to thank Superior’s employees for their continued dedication and their many accomplishments and express deep appreciation to our customers and shareholders for their loyal support. It has been an honor and privilege for me to have been part of this great company for the past 33 years,” Borick added.
Fourth Quarter Results
For the fourth quarter ended Dec. 29, 2013, Superior reported net income of $6.4 million, equal to 23 cents per diluted share, compared with $2.7 million, or 10 cents per diluted share, for the prior year period. Net income for the most recent quarter was impacted by an increase in the tax provision to $6 million, or 48 percent of pre-tax income, from $2.6 million, or 49 percent of pre-tax income, for the 2012 fourth quarter.
Consolidated net sales for the 2013 fourth quarter declined 8 percent to $192.5 million from $210 million in the previous year. The decline principally reflects reduced unit sales volume and a reduction in average selling price due to lower aluminum prices. Unit shipments were 2.9 million in the fourth quarter of 2013 versus 3.2 million a year ago.
