Superior Industries has announced that the company is supplying two new designs of alloy wheels to GM for the redesigned Chevrolet Malibu. SI President and COO says that “We see many opportunities in the years ahead as GM…offers aluminium wheels throughout its product line up.”
Superior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
Superior Industries is to be the supplier of aluminium wheels for the Ford F-150 truck, supplying five different styles of wheels for the 2004 model. The 2004 model is the latest version of the F-150, which has been the best-selling vehicle of any type in the USA for the past two decades and the country’s best-selling truck for the past 25 years.
From the beginning of May, Superior Industries has been supplying Mitsubishi Motors North America with three types of cast aluminium wheels for the 2004 model Endeavour SUV. This expands Superior’s OE business even further, with the company supplying a number of auto manufacturers, from Audi through to VW.
Rudolph (Rudy) A. Schlais Jr. has been elected to the Board of Directors of Superior Industries. Until his retirement in May last year, he was Group Vice President of GM Corp. and President and CEO of GM Asia Pacific, overseeing GM’s entry into China as well as pushing the group forward in other markets.
Superior Industries International has announced that it has been awarded new and replacement aluminium wheel supply contracts from General Motors. The new contracts include the Hummer H2; painted and chrome wheels for the Buick LeSabre; and chrome wheels for the Cadillac Escalade. Key replacement contracts include redesigned wheels for the Chevrolet Silverado and GMC Sierra pickup trucks and the Cadillac Deville. “This new business continues our confidence in our future growth,” said Louis L. Borick, Chairman and President.
Superior Industries reported a 28 per cent increase in revenue for the third quarter 2002 against the same quarter for 2001. For the nine months to September 2002 revenue increased 23 per cent from 474,417,000 dollars in 2001 to 585,864,000 dollars. Net income over the same period increased by 39 per cent.
At Superior Industries 3rd quarter conference call the company announced expected growth of 15 per cent every year for the next three years. This was based on the expected demand from the OE market where the company was seeing growth in supplying the key manufacturers. Shipments to DaimlerChrysler were up to 6 per cent, whilst there was a 15 per cent growth in supplies to non-Ford/GM companies. Market share at Ford/GM continued to increase. However, the aftermarket revenue for the third quarter stood at 903,000 Dollars. Superior accepted that this was an indication that this sector of the market was nearing an end for the company. Current US capacity is around 14.5 million units, plus potentially 2 million from Hungary. In order to meet new demand the company was expanding production capacity at Rogers, Arkansas and at two other plants. Plus there was the possibility of another new plant being developed in the next two years, possibly in China producing wheels exclusively for the export market.
Superior Industries International is expanding its commitment to customers, employees and the environment by ensuring that its production facilities are all certified to ISO 14001 within the next six months. Already, plants at Pittsburg, Kansas, Arkansas, Chihuahua, Mexico and Tatabanya, Hungary are registered to ISO 14001, other plants at Arkansas, California and Tennessee should also gain certification within six months. Executive Vice President, Steven J. Borick said,” ISO 14001 certification underscores our commitment to quality and productivity, as well as to the quality of life of our employees and the communities in which we work.”
Superior Industries International has reported that net income for the first quarter of 2002 has exceeded analyst expectations with revenue and shipments reaching record highs. For the first quarter 2002 net income increased by 7.6 per cent or 0.65 dollars per diluted share. Shipments of aluminium wheels increased by 16 per cent bringing revenue for the first quarter to 186,532,000 dollars, a record for the company and a 12.3 per cent increase on the same quarter for 2001. The results include the write off on non-recurring start up costs of 1.653 million dollars in respect of the launch of the new aluminium suspension parts operation. The joint venture wheel manufacturing operation in Hungary also posts profitable results.
Superior announced the award of several new and replacement programs under the previously announced long term supply agreement which has now been finalized and signed with General Motors Corporation. The first of these programs will begin production in the Spring of 2002 and include the Saturn vehicle name plate; a first for Superior Industries. “These recent business awards demonstrate the value of this unprecedented year contract to both General Motors and Superior Industries because it was based on long term performance in delivering the highest quality, technology and service at competitive prices,” said Louis L. Borick, President and Chairman of Superior Industries.
A report from automotive analysts at UBS Warburg forecasts that aluminium wheel manufacturer Superior Industries will increase production capacity by 30 per cent by the end of next year, to 17 million wheels. This is despite a predicted slow down in US auto sales. Superior sells wheels to OEMs and 85 per cent of its business is with Ford and GM, supplying around half of their aluminium wheel requirements. The recent filing for Chapter 11 of Hayes Lemmerz is seen as a factor in the forecast production increase.
Superior Industries International has been chosen by General Motors Corp. to supply aluminium road wheels for multiple GM vehicle lines over the next several years. Superior is a 2000 GM Supplier of the Year and was awarded the unprecedented contract based on its ability to consistently provide GM with world-class levels of quality, technology, service and price.
Superior Industries (Van Nuys, Ca.) has taken on the Mitsubishi Motor Manufacturing of America (Normal, Il.) as a new customer for cast aluminium wheels.
Superior Industries (Van Nuys/California), North America’s Leading oe supplier of aluminium wheels, announced record revenues of more than 331 m US-$ (+13.5%) and record net income to more than 40 m US-$ (+16.3%) after tax.
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