Wheel supplier Superior Industries International Inc. reported a positive quarter on Thursday, with a staggering jump in net income and a tamer climb in sales despite hurdles such as supply chain issues and commodity costs.
The Southfield, Mich.-based company's net income increased 535 percent from the second quarter of 2021 to $10.8 million. This is a continuation of a turnaround for the company, which posted a net loss of $43.2 million just two years ago in the second quarter of 2020.
Net sales rose about 24 percent to $431.5 million. Wheel sales fell around 4 percent quarter over quarter, with the company blaming reduced light-vehicle production and inflation.
CFO Tim Trenary said the income increase could be primarily attributed to rising aluminum costs being passed to customers.
"This business environment is so extraordinary," Trenary said. "We've been clear that we expect our customers, who have demonstrated retail pricing power, to pay their fair share of the cost inflation burden on our company."
Adjusted earnings before interest, taxes, depreciation and amortization rose 15 percent to $51.3 million.
Aside from the results, the company announced in its earnings call Thursday that it is partnering with Wheel Pros — the largest aftermarket wheel distributor in the U.S. CEO Majdi Abulaban did not elaborate on the details.
Superior's financial outlook was virtually unchanged from the first quarter. The biggest shift was in unit volume, with the middle point of the predicted range dropping by 550,00 units from three months ago.
Superior Industries' shares rose 1.7 percent to $4.79 in midmorning trading.