Superior Industries net income rises 21% in Q3

Net income at aluminum wheel supplier Superior Industries International Inc. rose 21 percent in the third quarter as a $1.1 million income tax benefit offset a slight decline in sales revenue.Superior, the largest North American light-vehicle aluminum wheel manufacturer, today reported third quarter net income of $6 million, up from $4.9 million a year ago.Net sales revenue declined slightly to $175.6 million from $175.7 million in the third quarter of 2015, even as wheel shipments rose 4.8 percent to 2.9 million units. Superior attributed the revenue dip to the lower value of aluminum.The company reported earnings per share of 24 cents. However, Superior said “operating inefficiencies” at one of its five manufacturing facilities brought down earnings by about 27 cents per share.In a statement, Superior CEO Don Stebbins said production problems at the facility, which was not identified, were “triggered by equipment reliability issues as well as a power interruption” and said the company “incurred significant expedited freight, maintenance and labor costs” as a result.“We expect these operating inefficiency costs to continue into the fourth quarter as we balance strong customer demand with production across our manufacturing platform,” Stebbins said. “We have taken a number of actions and committed the necessary internal and external resources required to overcome these challenges in order to return to normalized production and shipment schedules as soon as possible.”Superior lowered its adjusted earnings outlook for 2016 as a result of the problems at the facility. It expects adjusted earnings before interest, taxes, depreciation and amortization of between $80 million and $88 million on the year, down from the previous outlook of between $102 million and $108 million.Still, Superior said it anticipates unit shipment growth of between 7 and 8 percent, up from the previous estimate of between 6 and 8 percent. It raised its revenue outlook to between $715 million and $725 million from between $710 million and $725 million.“Despite these near-term challenges, our long-term strategic plan is unchanged and our business fundamentals remain strong,” Stebbins said. “Looking ahead, we remain confident that we have the right strategy in place to continue to drive long-term profitable growth.”Superior ranks No. 82 on Automotive News’ list of the top 100 North American suppliers, with sales to automakers of $728 million in 2015.

Superior Industries net income rises 21% in Q3

Featured Stories