Superior posts loss on 16% sales decline

SOUTHFIELD–Superior Industries International Inc. (NYSE:SUP) posted a loss of $2.4 million or 44 cents a share in the fourth quarter, compared to net income of $16.5 million or 25 cents a share in the fourth quarter of 2022. Revenue was $308.6 million, down from $402.1 million in the fourth quarter of 2022.

For the full year, the loss was $92.9 million or $4.73 a share, compared to net income of $37 million or 2 cents a share in 2022. Revenue was $1.39 billion, down fro $1.64 billion in 2022.

“Our teams demonstrated incredible resilience in 2023 as we navigated a challenging operating environment that significantly weighed on our financial results,” said Superior president and CEO Majdi Abulaban. “Despite these near-term headwinds, including softness in the European aftermarket, the impact of the UAW strikes, declines in production amongst key customers in the second half of the year, and the impact of the strategic action initiated in Europe to transform our European business, we remained focused on optimizing our business. The transformation of our European operations will improve our cost structure as we shift production to a lower-cost region. Further, we continue to capture demand for our differentiated portfolio, delivering another year of growth in content per wheel. “We will continue to optimize our business and expect to exit 2024 with a significantly elevated competitive position and improved earnings power, also having addressed underperforming parts of our portfolio, thereby optimizing the profitable utilization of our manufacturing capacity. Further, we are accelerating our focus on addressing the Company’s capital structure. These actions, when taken together with our competitively advantaged manufacturing footprint and premium wheel know-how, will put Superior on track to profitable growth, margin expansion and strengthened cash generation well into the future,” Mr. Abulaban continued. “We look forward to delivering sustainable growth and long-term value for our shareholders in the year ahead.”

Selling, general, and administrative expenses for 2023 were $88 million, up from $68 million in the prior year. The increase in SG&A expenses is primarily due to restructuring costs associated with the transformation of Superior’s European business and a valuation allowance on claims receivable from the SPG estate.

Loss from operations was $51 million in 2023, compared to Income from operations of $98 million in 2022.

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

Superior is one of the world’s leading aluminum wheel suppliers. Its brands include ATS, Rial, Alutec, and Anzio.

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