Superior Industries Profits Rise Despite Sales Dip

SOUTHFIELD — Superior Industries International Inc. (NYSE:SUP), the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America, reported net income of $6.5 million or 24 cents a share in its second fiscal quarter ended June 28, up from $5 million ro 18 cents a share in the same quarter a year earlier.

Revenue was $183.9 million, down from $199 million a year earlier.

For the six months, net income was $10.9 million or 40 cents a share, up from $9.9 million or 36 cents a share a year earlier. Revenue was $357.7 million, down from $382.4 million in the first half of 2014.

“The second quarter marked continued strong execution against our strategic initiatives,” said Superior president and CEO Don Stebbins. “The prior closure of our manufacturing facility and the reallocation of production to our other facilities, as well as improved cost performance across all of our manufacturing plants, drove significant expansion in our margins. … These results underscore our confidence that we are on the right path to driving higher levels of profitability and delivering strong shareholder returns.”

The company said the increase in net income was largely driven by lower costs related to a shutdown fo a wheel plant in Rogers, Ark., and the opening of a new plant in Mexico. Improved earnings also reflected cost improvement at all of the company’s other manufacturing facilities.

Unit shipments were 2.7 million in the second quarter of 2015 vs. 3.0 million in the same period a year ago, partially reflective of timing related to the launches of vehicle programs.

Consolidated selling, general and administrative expenses for the second quarter were $8.9 million, or 4.8 percent of net sales, up from $7.3 million, or 3.7 percent of net sales, in the prior year period. The increase primarily reflects increased legal and general consulting fees related to the current year proxy contest, higher employee termination costs and the combined effect of a 2014 favorable impact from collecting aged accounts receivables previously reserved for and 2015 expense for the write-down of aged accounts receivable.

The company reported net cash provided by operating activities of $25.2 million in the first half of 2015 compared to $1.5 million in the same period last year. The improvement resulted primarily from favorable changes in accounts receivable, inventories and accounts payable.

During the second quarter of 2015, the Company announced a quarterly dividend payment of 18 cents a share. In addition, the company repurchased 285,966 shares of stock at a cost of $5.5 million. Through Aug. 3, the company has repurchased 557,643 shares for a total of $10.4 million as part of the $30 million share buyback program approved last year.

The company also reaffirmed its 2015 guidance of sales between $725 million and $800 million.

The Company reaffirms its previously disclosed guidance for the full year 2015. For the full-year 2015, the company said it expects net sales in the range of $725 million to $800 million.

To listen in on a replay of a conference call discussing these results, visit www.supind.com.

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