Superior Industries’ Third Quarter Results
Superior Industries International, Inc has announced operating results for the third quarter and first nine months of 2005 in-line with management’s prior guidance and analysts’ expectations. For the three months ended 30 September 2005, revenue decreased 5.9 per cent to $187,618,000 from $199,328,000 for the third quarter of 2004. Wheel revenue declined 7.2 per cent to $178,288,000 from $192,164,000, as unit wheel shipments declined 7.8 per cent. Components revenue increased 30.2 per cent to $9,330,000 from $7,164,000.
The net loss was $501,000, or $0.02 per share. This compares to net income of $5,475,000, or $0.20 per diluted share, for the third quarter of 2004. The company’s share of profits from its joint venture aluminium wheel manufacturing operation in Hungary declined to $1,289,000 for this year’s third quarter compared to $1,693,000 a year ago due to lower shipment volumes.
The operating loss from Superior’s aluminium suspension components business was $2,645,000 for this year’s third quarter compared to an operating loss of $3,314,000 for the same period of 2004.
At 30 September 2005, working capital was $276,878,000, including cash and short-term investments of $117,422,000. “As anticipated, the steep decline in North American vehicle production this summer had a significant impact on Superior, as the deepest cuts occurred in some of our most important vehicle programs. Plant utilisation, work schedules, and gross margin all were negatively affected, and pricing remained a critical issue for Superior and the OEM auto parts industry worldwide,” said president and chief executive officer Steven Borick.
“Despite today’s unprecedented competitive pressures, we are confident that we have the right strategy to secure Superior’s future as a global company. Our cost reduction and automation initiatives are delivering results. Construction of our third facility in Mexico, which will set the world standard for cast aluminium wheel manufacturing, remains on schedule. We continue to win substantial new and replacement wheel supply programs, our aluminium components business continues to grow, and interesting expansion opportunities have emerged in developing markets. We expect a profitable fourth quarter, and we remain optimistic about the long-term outlook for Superior,” Borick said.