SOUTHFIELD — Superior Industries International Inc. (NYSE:SUP), a supplier of aluminum wheels to the auto industry, cut its 2018 outlook amid falling wheel unit shipments.
The company said that based on preliminary unaudited results, Superior expects wheel unit shipments to be 4.7 million in the third quarter of 2018, which compares to unit shipments of 5.0 million in the prior year period. Results for the third quarter of 2018 were impacted by the inclusion of one additional calendar week of North America operations in the third quarter of 2017 as a result of the realignment of the fiscal periods to calendar quarters in 2017.
Net sales for the third quarter of 2018 are expected to be in the range of $345 million to $350 million, compared to net sales of $331.4 million in the third quarter of 2017.
Value-added sales, which is net sales minus the cost of aluminum, are expected to be in the range of $175 million to $180 million, compared to Value-Added Sales of $187.4 million in the third quarter of 2017.
Adjusted earnings before interest, taxes, depreciation and amortization are expected to be approximately $30 million for the third quarter of 2018, compared to $43 million in the third quarter of 2017.
The company said complete financial results for the third quarter ended Sept. 30 will be released before the market opens Friday, Nov. 9.
“Our preliminary third quarter 2018 results reflect the impact of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) emission standards, which drove lower volumes due to reduced OEM production throughout Europe, as well as softer production schedules from our OEM customers in the United Kingdom,” said Don Stebbins, president and CEO. “Additionally, rising energy rates in Mexico, coupled with higher launch costs associated with our newer sophisticated designs and finishes in North America and Europe negatively impacted the quarter. These factors will continue to pressure profitability during the fourth quarter.”
Superior now expects 2018 unit shipments to be in the range of 20.85 million to 21.05 million. This compares to Superior’s previously issued outlook of 21.25 million to 21.60 million. Net sales are now expected to be in the range of $1.48 billion to $1.51 billion, down from the previously issued outlook of $1.52 billion to $1.56 billion. Value-added sales are now expected to be in the range of $790 million to $805 million, down from the previously issued outlook of $800 million to $835 million. Also, adjusted EBITDA is now expected to be between $175 million and $180 million, down from the previous outlook of $190 million and $205 million.