Superior Industries Profit Jumps

SOUTHFIELD — Superior Industries International Inc. (NYSE: SUP), the largest manufacturer of aluminum wheels for cars and light trucks in North America, reported net income of $8.1 million or 31 cents a share for the fourth fiscal quarter ended Dec. 27, up from $1.4 million or 5 cents a share in the same quarter a year earlier. Revenue was $194.6 million, up from $186.7 million in the prior fiscal year.

For the full year, net income was $23.9 million or 90 cents a share, up from $8.8 million or 33 cents a share a year earlier. Revenue was $727.9 million, down from $745.4 million a year earlier.

The company also reported “value-added sales” of $103 million in the fourth quarter, up 16.2 percent from a year earlier. Value-added sales are defined as sales minus pass-through charges, primarily the value of aluminum used in the wheels. Wheel unit shipments were 3.2 million in th efourth quarter, up from 2.7 million a year earlier.

For the full year, value-added sales were $360.8 million, down 2.3 percent from $369.4 million in 2014. Wheel shipments for the full year were 11.2 million, up slightly from 11.1 million in 2014.

Selling, general and administrative expenses were $10.1 million or 5.2 percent of sales in 2015, up from $7.1 million or 3.8 percent of sales in 2014.  The company said the increase was due to a $1.6 million increase in compensation expenses tied to improved company performance, and $600,000 for additional consulting and legal expenses. There were also $1.7 million in transition costs from the 2015 move of the company’s corporate offices from Van Nuys, Calif. to Southfield.

The company said it expects 2016 value-added sales of $370 million to $390 million and total sales of $720 million to $740 million. And it said it expects North American light vehicle production to rise about 4 percent this year to 18.2 million units.

Don Stebbins, president and CEO, said in a press release: “Our strong fourth quarter results underscore the solid progress we made in 2015. During the fourth quarter, we grew our market share with gains at most of our major customers as we benefited from the aggressive ramp-up of our new Mexican facility and continued improvements in our other facilities. Our focus on operational excellence and higher value-added product also contributed to margin improvement in the quarter. As we look ahead, we believe that we have significant opportunities for improvement despite achieving double-digit EBITDA margins in 2015, two years ahead of our original goal.”

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

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