VAN NUYS, Calif. — Superior Industries International has announced a reduced net loss of $12.7 million, or 48 cents per share, for the third quarter of 2009, compared with a net loss of $14.2 million, or 53 cents per share, for the third quarter of 2008.
Gross profit during the current quarter improved by $15.4 million to $4.2 million from a loss of $11.2 million in the same period a year ago, including pretax non-operating costs of $3.9 million.
Compared with the preceding quarter of 2009, net sales in the third quarter increased 37.7 percent, on 44.5 percent higher unit shipments. During the third quarter, two of the company’s major customers, Chrysler and General Motors, began to return to normal production levels after their emergence from bankruptcy. Additionally, the auto industry was positively impacted during the quarter by the increase in demand for vehicles initiated by the “Cash for Clunkers” program.
“We are encouraged by the production volume increases that materialized as the third quarter progressed. While a significant portion of the increase was attributed to the post bankruptcy reorganizations at General Motors and Chrysler, orders with virtually all of our customers increased in the third quarter,” said Steven Borick, chairman, chief executive officer and president. “Based on orders received thus far, we believe that our sales will show moderate improvement during the fourth quarter.
“The steps we have taken to reduce and manage costs and rationalize our production capacity in line with the changes announced by our major customers resulted in the improved gross profit for the 2009 third quarter on 9.7 percent fewer unit shipments and 16.2 percent fewer wheels produced than a year ago,” Borick added. “This was accomplished while incurring the additional non-operating costs related primarily to our previously announced plant closures.”
Consolidated net sales for the 2009 third quarter decreased 31.8 percent to $111.4 million from $163.4 million last year.
Gross profit was $4.2 million, or 3.8 percent of net sales, in the third quarter of 2009, compared to gross loss of $11.2 million, or 6.9 percent of net sales, for the third quarter of 2008. In spite of the decreases in unit shipments and wheels produced and the one-time costs identified below, gross profit in the third quarter 2009 improved by $15.4 million over the same period a year ago. The company said this improvement was due to the steps taken to manage costs and rationalize production capacity, which reduced employment-related costs significantly compared with the same period a year ago. Severance and other non-impairment costs associated with plant closures and other workforce reductions totaled approximately $2 million in the 2009 third quarter. In addition, medical and workers’ compensation expenses relating to the plant closures increased $1.9 million during the period.
Net sales for the first nine months of 2009 decreased 54.6 percent to $273.8 million from $603 million for 2008. Gross loss was $22.3 million, or 8.2 percent of net sales, which included a total of $16.9 million of non-operating costs, including severance costs associated with the two plant closures and other workforce reductions, equipment dismantling and other plant closure related costs. This compares to gross profit of $10.2 million, or 1.7 percent of net sales, in the comparable 2008 period.
Net loss was $90.2 million, or $3.38 per share, compared with net loss of $5.9 million, or 22 cents per share, in the same period in 2008.
