Superior swings back to profit on higher sales

SOUTHFIELD—Superior Industries International Inc., the Southfield-based aluminum wheel manufacturer, reported net income of $13.1 million or 18 cents a share in the first quarter, up from a loss of $190.1 or $7.84 a share in the same quarter a year ago. Revenue was $358.2 million, up from $301.1 million a year earlier.

Units shipped were 2.45 million in the United States, up from 2.22 million a year earlier, and 2.06 million in Europe, down from 2.09 million a year earlier.

Last year’s huge loss was caused by a one-time charge of $193.6 million for impairment of goodwill and intangible assets—the value of acquisitions and other parts of a business over their cash value.

“Our team delivered impressive results in a rapidly shifting environment as we continued to execute our value creation roadmap and drive profitable growth,” said Superior President and CEO Majdi Abulaban. “We have established a strong foundation with a robust portfolio of differentiated technologies that are advancing value-added sales and growth over market. Further, we generated strong earnings improvement and margin expansion in the face of a volatile production environment and supply chain challenges, including semiconductor shortages, that impacted the automotive industry. This is a testament to the enhanced cost and cash discipline we fostered throughout the business. We remain focused on capitalizing on trends towards electrification, CO2 reduction and vehicle differentiation through our light weighting and premium finishing capabilities, as these technologies will strengthen our position as a growth over market company. I am confident in our ability to continue to generate significant shareholder value throughout 2021 and beyond.”

Selling, general, and administrative expenses were $17.3 million, compared to $12.5 million in the prior year period.

Superior confirmed its full year 2021 guidance of unit shipments of 16.9 million to 17.7 million, sales of $1.3 billion to $1.37 billion, and adjusted earnings before interest, taxes, depreciation and amortization of $160 million to $180 million.

To listen to a conference call discussing these results, visit www.supind.com.

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