Uniwheels business boosts Q1 2018 sales, profit at Superior Industries International
Aluminium wheel manufacturer Superior Industries International, Inc. reports shipping 5.5 million units in the first quarter of 2018, a 94.8 per cent increase compared with the first three months of last year. This sizeable improvement was primarily due to the inclusion of the company’s European operation in this year’s results but was also driven by higher unit shipments in North America.
Net sales for the first quarter of 2018 were US$386.4 million, up 121.8 per cent on the $174.2 million achieved a year earlier. Value-Added Sales, a non-GAAP financial measure defined as net sales less pass-through charges, primarily for the value of aluminium, were $207.4 million for the first quarter of 2018, a 117 per cent increase compared to the first quarter of 2017.
Gross profit for the first quarter of 2018 was $50.0 million, compared to $19.2 million in the prior-year period. Gross profit as a percentage of Value-Added Sales was 24.1 per cent compared to 20.1 per cent in the prior year period. The increase in gross profit was due mainly to an overall strong sales performance, increased operational efficiency in North America, and the addition of the European business unit.
Selling, general and administrative expenses for the first quarter were $22.4 million, or 5.8 per cent of net sales, compared to $15.3 million, or 8.8 per cent of net sales in the prior-year period. The increased expense was largely driven by the inclusion of Superior’s European operations.
Income from operations for the first quarter of 2018 was $27.6 million, compared to income from operations of $3.9 million in the prior year period. Income from operations as a percentage of Value-Added Sales was 13.3 per cent for the first quarter of 2018 compared to 4.1 per cent of Value-Added Sales in the prior year period. Income from operations in the prior-year period was negatively impacted by transaction expenses incurred as a result of the acquisition of the European operations.
For the first quarter of 2018, the Company reported net income of $10.3 million, and earnings per diluted share of $0.07, including the impact from acquisition-related items of ($2.0) million, or ($0.08) per diluted share. This compares to $3.1 million of net income, or $0.12 per diluted share, in the first quarter of 2017.
Adjusted EBITDA, a non-GAAP financial measure, reached a record-level of $52.2 million, or 13.5 per cent of net sales, for the first quarter of 2018. This compares to $19.1 million, or 11.0 per cent of net sales, for the first quarter of 2017. Adjusted EBITDA as a percentage of Value-Added Sales was 25.2 per cent compared to 20.0 per cent in the prior year period.
“Our first quarter of 2018 represented a record start to the year, extending our momentum from the end of 2017. Driven by the combination of solid volume, improved performance in our North American operations, and the addition of our European business, Value-Added Sales increased 117 per cent and Adjusted EBITDA grew 173 per cent,” commented Don Stebbins, president and chief executive officer of Superior Industries International. “The combination of our European and North American teams into one global organisation is benefitting our performance. While we are pleased with our first quarter results, we have substantial opportunities to gain additional efficiencies as we continue to capitalise on the secular changes in the market.”
Superior has reaffirmed the outlook for full-year 2018 it announced on 17 January 2018: The company expects net sales to be in the range of $1.45 billion to $1.50 billion, driven by unit shipments of 21.25 million to 21.6 million; Value-Added Sales are expected to be in the range of $800 million to $835 million; Adjusted EBITDA is expected to be between $185 million and $200 million.