Superior Industries Q2 profits down

Superior Industries International reports lower year-on net income in the second quarter of 2014, despite net sales remaining the same. The company achieved net income of US$5.0 million, or $0.18 per diluted share, for the second quarter of 2014, compared with net income of $6.3 million, or $0.23 per diluted share, for the second quarter of 2013.

Net sales for the quarter were $199.0 million, the same as a year earlier. Unit shipments rose one per cent over the corresponding prior-year period to 3 million units. Gross profit decreased to $15.7 million and was eight per cent of net sales for the current year quarter, versus $16.2 million of net sales for the same period a year ago. The aluminium wheel producer says the decline in profit “reflects a modestly higher increase in factory costs when compared to the small increase in unit sales volume.”

“Results for the quarter helped to clarify many of the challenges Superior faces,” said Don Stebbins, who joined Superior in May 2014 as its president, chief executive officer and member of the board of directors. “Despite a small increase over last year, we continue to experience relative unit volume softness. Our results highlight the need to reduce factory costs to improve margins and also to bolster our longer-term competitive position. Accordingly, we announced yesterday the closing of our Rogers, Arkansas facility by the end of this year, as we implement steps toward addressing our more immediate challenges.

“I am confident that our initiatives, combined with Superior’s iconic brand, industry-leading position and strong foundation, will allow us to pursue opportunities and take Superior to its next stage of development, with an ultimate objective of enhancing returns for our shareholders,”
Stebbins added.