Superior Industries International, Inc has announced that its board of directors has authorised management to engage an investment banker and/or other advisors to explore options for disposal of the company’s suspension components business.
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.
Superior Industries International, has announced a 3.2 per cent increase in the company’s quarterly cash dividend, to $0.16 per share at today’s AGM. The new, higher dividend is payable to shareholders on 15 July 2005.
“We always are pleased to increase the cash dividend, particularly as we are faced with the difficult challenges of an increasingly competitive environment and the rapid globalisation of the automotive industry,” said president and chief executive officer, Steven Borick. “This latest dividend increase demonstrates the Board’s conviction that we have the right long-term strategy to protect and enhance our industry leadership, and the discipline, determination, and resources required to successfully implement our plans for the future.”
Superior Industries has announced that Steven J Borick will become the company’s new president and chief executive officer from the 1 January, 2005. He will succeed Louis Borick, who will remain chairman of the board.
Commenting on the appointment, Louis Borick said: “Steven Borick has demonstrated his ability to effectively manage our complex operation. He has earned the trust and respect of our employees, our entire management team, and our customers. With his leadership and personal commitment to Superior’s success, we are confident that Steven is the right choice to lead this company into the future.”
Steven Borick, has been president and COO of Superior since 2003. He was executive vice president from 2000 to 2002, and has been a director since 1981. Mr Borick is a director and member of the Audit Committee of MDC Holdings, Inc, Colorado, America’s eighth largest homebuilder, and a director of Richmond American Homes, Denver.
Superior Industries International, Inc expects its operating results for the third quarter of 2004 to be less than expected. Management expects about a 5 per cent decline in unit wheel shipments for the third quarter, and net earnings of approximately $0.20 per diluted share.
“Our major OEM customers have announced planned production cuts for the second half of the year based on weak summer sales of cars and light trucks resulting in an unanticipated decline in unit wheel shipments for the company. In addition, operating difficulties led to a delay in the ramp-up of production in certain of our factories following this year’s extended seasonal shutdowns,” said President and COO Steve Borick.
Superior Industries is to build a new wheel-manufacturing plant in Mexico, with construction starting this year and production beginning in mid-2006. Mexico was chosen because of cheaper labour costs, although the factory is expected to have a high degree of automation. Estimated cost of the plant is $60-80 million and it will have an annual production capacity of 2.5 million wheels.
Wheel manufacturer Superior Industries has released its first quarter 2004 results. Turnover was up 10.7 per cent to an all-time high of $234.19 million. Net income fell to $13.667 million, compared with $22.266 million in 1Q 2003. Superior’s aluminium suspension components business made a loss of $2.9 million, while the company’s share of profits from its wheel manufacturing joint venture SUOFTEC in Hungary was $2.17 million, due largely to the favourable currency exchange rate.
Superior Industries has announced that the company is supplying two new designs of alloy wheels to GM for the redesigned Chevrolet Malibu. SI President and COO says that “We see many opportunities in the years ahead as GM…offers aluminium wheels throughout its product line up.”
Superior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
Superior Industries is to be the supplier of aluminium wheels for the Ford F-150 truck, supplying five different styles of wheels for the 2004 model. The 2004 model is the latest version of the F-150, which has been the best-selling vehicle of any type in the USA for the past two decades and the country’s best-selling truck for the past 25 years.
From the beginning of May, Superior Industries has been supplying Mitsubishi Motors North America with three types of cast aluminium wheels for the 2004 model Endeavour SUV. This expands Superior’s OE business even further, with the company supplying a number of auto manufacturers, from Audi through to VW.
Rudolph (Rudy) A. Schlais Jr. has been elected to the Board of Directors of Superior Industries. Until his retirement in May last year, he was Group Vice President of GM Corp. and President and CEO of GM Asia Pacific, overseeing GM’s entry into China as well as pushing the group forward in other markets.
Superior Industries International has announced that it has been awarded new and replacement aluminium wheel supply contracts from General Motors. The new contracts include the Hummer H2; painted and chrome wheels for the Buick LeSabre; and chrome wheels for the Cadillac Escalade. Key replacement contracts include redesigned wheels for the Chevrolet Silverado and GMC Sierra pickup trucks and the Cadillac Deville. “This new business continues our confidence in our future growth,” said Louis L. Borick, Chairman and President.
Superior Industries reported a 28 per cent increase in revenue for the third quarter 2002 against the same quarter for 2001. For the nine months to September 2002 revenue increased 23 per cent from 474,417,000 dollars in 2001 to 585,864,000 dollars. Net income over the same period increased by 39 per cent.