SOUTHFIELD — Superior Industries International Inc. (NYSE:SUP), the global manufacturer of aluminum wheels, reported a loss of $7.3 million or 41 cents a share in the quarter ended June 25, compared to net income of $13.2 million or 52 cents a share a year earlier.
Revenue was $240.6 million, up from $182.7 million a year earlier.
For the six months, the company posted a loss of $4.2 million or 28 cents a share, vs. net income of $27.6 million or $1.08 a share a year earlier. Revenue was $414.8 million, up from $368.8 million in the first half of 2016.
The reason for the decline in profitability was Superior’s $715 million acquisition of Uniwheels, a German wheel manufacturer, which closed May 30. Selling, general, and administrative expenses for the second quarter were $22.1 million, more than double $10 million in the prior-year period, due to costs for the acquisition and integration of Uniwheels. The costs of good sold also rose sharply, to $220.6 million, up from $153 million a year earlier, due to the effects of purchase accounting, slashing gross profit.
“The second quarter marked an exciting transformational shift for Superior as we closed our tender offer for Uniwheels,” said Don Stebbins, Superior president and CEO. “This transaction establishes Superior as one of the largest global automotive wheel suppliers, significantly expanding our geographic reach, diversifying our customer base, expanding our technological capabilities and bringing together the two companies’ talented employees. Since closing, I have been extremely pleased with our teams in North America and Europe who are working diligently to integrate our operations and evaluate strategies to further serve the needs of our customers. With respect to second quarter financial performance, we saw slightly softer volumes and experienced some operational inefficiencies in North America. Conversely, we benefited from strength in Europe bolstered by the ramp up of our newest facility in Poland.”
Wheel unit shipments were 3.8 million in the second quarter of 2017, a record for any individual quarter for the company, compared to second quarter unit shipments of 3.1 million in the prior year period. The increase was driven by the addition of 800,000 units from one month of operations of Uniwheels. Superior’s North American volumes were down approximately 121,000 units, or 4 percent, compared to the same period last year. The decline was due to lower industry volumes as well as the roll off of programs, which were partially offset by the launch of new programs.
The company revised its 2017 outlook to reflect the Uniwheels acquisition. Sales are now predicted at $1.095 billion to $1.115 billion, based on expected unit shipments of 16.9 million to 17.2 million. That’s up from a previously issued outlook of 12.0 million to 12.25 million units and resulting sales of $730 million to $750 million.
To listen to a replay of a conference call discussing these results, visit http://www.supind.com.