EX-99.1 9 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1

SUPERIOR INDUSTRIES INTERNATIONAL, INC.
SELECTED UNAUDITED QUARTERLY CONSOLIDATED CONDENSED FINANCIAL DATA

During the preparation and review of our 2007 income tax provision, we discovered that we had not properly reconciled our tax liabilities related to the differences between the net book basis and the net tax basis of our depreciable property, plant and equipment. As a result of completing the necessary reconciliations for each year since 2002, we identified errors that impacted our previously filed financial statements for the fiscal years 2003 through 2006 and our previously filed interim financial statements for those years related to our tax liabilities and our income tax provisions.

During the fourth quarter of 2007, we determined the cumulative impact of known differences in our accounting for our equity method investment in Suoftec and our summary financial information presented for Suoftec, which we considered to be immaterial to any individual reporting period, required restatement.  The errors relate to the quantification and recording of the adjustments to report the Suoftec earnings on the basis of U.S. GAAP versus on the Hungarian accounting rules followed by Suoftec.  These differences principally relate to overhead cost capitalization into inventory and deferred income taxes on property, plant and equipment.

In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 154, “Accounting Changes and Error Corrections” (SFAS No. 154), we have restated, to the earliest period practical, our previously filed financial statements. See Item 6 – Selected Financial Data in Part I of this Annual Report on Form 10-K, for the effect of the restatements on fiscal years 2003 and 2004 and Note 2 – Restatement of Consolidated Financial Statements in Notes to Consolidated Financial Statements in Item 8 – Financial Statements and Supplementary Data of this Annual Report on Form 10-K, for the effect of the restatements on fiscal years 2005 and 2006.

The following table details the net income effect of these corrections for fiscal quarters in 2007 and 2006:
 
   
Net
                    
   
Income (Loss)
    
Income Tax
    
Equity
    
Net
  
   
as Previously
    
(Provision)
    
Earnings of
    
Income (Loss)
  
Fiscal Quarter
  
Reported
    
Benefit
    
Joint Ventures
    
as Restated
  
(Thousands of dollars)
                        
                         
First quarter
   $ 1,110     $ (312 )   $ -     $ 798  
Second quarter
     2,107       (312 )     -       1,795  
Third quarter
     (7,711 )     (312 )     -       (8,023 )
Fourth quarter
   $ (4,827 )     (313 )     28       (5,112 )
                                 
Fiscal Year 2006
   $ (9,321 )   $ (1,249 )   $ 28     $ (10,542 )
                                 
First quarter
   $ 1,854     $ 197     $ -     $ 2,051  
Second quarter
     3,035       197       -       3,232  
Third quarter
     (644 )     (95 )     -       (739 )
                                 
Nine months ended September 30, 2007
   $ 4,245     $ 299     $ -     $ 4,544  

The reconciliations from previously filed interim financial statements to the restated interim financial information included in Note 18 – Quarterly Financial Data in Notes to Consolidated Financial Statements in Item 8 – Financial Statements and Supplementary Data for the quarters and year-to-date periods ended December 31, 2006, September 30, 2007 and 2006, June 30, 2007 and 2006 and March 31, 2007 and 2006, and the related Management’s Discussion and Analysis, for the interim periods in fiscal 2007 and 2006, are included in this Exhibit 99.1 to our Annual Report on Form 10-K.  There was no impact to our 2007 or 2006 interim Net Cash provided by Operating Activities due to the correction of the above errors.  We have not amended and do not intend to amend any of our previously filed Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q for the periods affected by these restatements.
 
 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended September 30, 2007
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 227,557     $ -     $ 227,557  
Cost of sales
     222,281       -       222,281  
                         
GROSS PROFIT
     5,276       -       5,276  
                         
Selling, general and administrative expenses
     7,777       -       7,777  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     (2,501 )     -       (2,501 )
                         
Interest income, net
     820       -       820  
Other income (expense), net
     581       -       581  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     (1,100 )     -       (1,100 )
                         
Income tax (provision) benefit
     (731 )     (95 )     (826 )
Equity in earnings of joint ventures
     1,187       -       1,187  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     (644 )     (95 )     (739 )
                         
Income (loss) from discontinued operations, net of taxes
     -       -       -  
                         
NET INCOME (LOSS)
   $ (644 )   $ (95 )   $ (739 )
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ (0.02 )   $ (0.01 )   $ (0.03 )
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ (0.02 )   $ (0.01 )   $ (0.03 )
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ (0.02 )   $ (0.01 )   $ (0.03 )
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ (0.02 )   $ (0.01 )   $ (0.03 )
 

SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Nine Months Ended September 30, 2007
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 727,649     $ -     $ 727,649  
Cost of sales
     706,650       -       706,650  
                         
GROSS PROFIT
     20,999       -       20,999  
                         
Selling, general and administrative expenses
     23,729       -       23,729  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     (2,730 )     -       (2,730 )
                         
Interest income, net
     2,708       -       2,708  
Other income (expense), net
     2,469       -       2,469  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     2,447       -       2,447  
                         
Income tax (provision) benefit
     (938 )     299       (639 )
Equity in earnings of joint ventures
     2,736       -       2,736  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     4,245       299       4,544  
                         
Income (loss) from discontinued operations, net of taxes
     -       -       -  
                         
NET INCOME (LOSS)
   $ 4,245     $ 299     $ 4,544  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.16     $ 0.01     $ 0.17  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.16     $ 0.01     $ 0.17  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.16     $ 0.01     $ 0.17  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.16     $ 0.01     $ 0.17  

 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended June 30, 2007
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 255,217     $ -     $ 255,217  
Cost of sales
     241,639       -       241,639  
                         
GROSS PROFIT
     13,578       -       13,578  
                         
Selling, general and administrative expenses
     9,037       -       9,037  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     4,541       -       4,541  
                         
Interest income, net
     1,066       -       1,066  
Other income (expense), net
     (486 )     -       (486 )
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     5,121       -       5,121  
                         
Income tax (provision) benefit
     (2,817 )     197       (2,620 )
Equity in earnings of joint ventures
     731       -       731  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     3,035       197       3,232  
                         
Income (loss) from discontinued operations, net of taxes
     -       -       -  
                         
NET INCOME (LOSS)
   $ 3,035     $ 197     $ 3,232  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.11     $ 0.01     $ 0.12  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.11     $ 0.01     $ 0.12  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.11     $ 0.01     $ 0.12  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.11     $ 0.01     $ 0.12  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Six Months Ended June 30, 2007
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 500,092     $ -     $ 500,092  
Cost of sales
     484,369       -       484,369  
                         
GROSS PROFIT
     15,723       -       15,723  
                         
Selling, general and administrative expenses
     15,952       -       15,952  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     (229 )     -       (229 )
                         
Interest income, net
     1,888       -       1,888  
Other income (expense), net
     1,888       -       1,888  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     3,547       -       3,547  
                         
Income tax (provision) benefit
     (207 )     394       187  
Equity in earnings of joint ventures
     1,549       -       1,549  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     4,889       394       5,283  
                         
Income (loss) from discontinued operations, net of taxes
     -       -       -  
                         
NET INCOME (LOSS)
   $ 4,889     $ 394     $ 5,283  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.18     $ 0.02     $ 0.20  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.18     $ 0.02     $ 0.20  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.18     $ 0.02     $ 0.20  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.18     $ 0.02     $ 0.20  



SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended March 31, 2007
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 244,875     $ -     $ 244,875  
Cost of sales
     242,730       -       242,730  
                         
GROSS PROFIT
     2,145       -       2,145  
                         
Selling, general and administrative expenses
     6,915       -       6,915  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     (4,770 )     -       (4,770 )
                         
Interest income, net
     822       -       822  
Other income (expense), net
     2,374       -       2,374  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     (1,574 )     -       (1,574 )
                         
Income tax (provision) benefit
     2,610       197       2,807  
Equity in earnings of joint ventures
     818       -       818  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     1,854       197       2,051  
                         
Income (loss) from discontinued operations, net of taxes
     -       -       -  
                         
NET INCOME (LOSS)
   $ 1,854     $ 197     $ 2,051  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.07     $ 0.01     $ 0.08  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.07     $ 0.01     $ 0.08  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.07     $ 0.01     $ 0.08  
Income (loss) from discontinued operations, net of taxes
     -       -       -  
Net income (loss)
   $ 0.07     $ 0.01     $ 0.08  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended December 31, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 212,169     $ -     $ 212,169  
Cost of sales
     213,117       -       213,117  
                         
GROSS LOSS
     (948 )     -       (948 )
                         
Selling, general and administrative expenses
     6,818       -       6,818  
Impairments of long-lived assets
     117       -       117  
                         
INCOME (LOSS) FROM OPERATIONS
     (7,883 )     -       (7,883 )
                         
Interest income, net
     1,413       -       1,413  
Other income (expense), net
     246       -       246  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     (6,224 )     -       (6,224 )
                         
Income tax (provision) benefit
     (448 )     (313 )     (761 )
Equity in earnings of joint ventures
     2,226       28       2,254  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     (4,446 )     (285 )     (4,731 )
                         
Income (loss) from discontinued operations, net of taxes
     (381 )     -       (381 )
                         
NET INCOME (LOSS)
   $ (4,827 )   $ (285 )   $ (5,112 )
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ (0.17 )   $ (0.01 )   $ (0.18 )
Income (loss) from discontinued operations, net of taxes
     (0.01 )     -       (0.01 )
Net income (loss)
   $ (0.18 )   $ (0.01 )   $ (0.19 )
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ (0.17 )   $ (0.01 )   $ (0.18 )
Income (loss) from discontinued operations, net of taxes
     (0.01 )     -       (0.01 )
Net income (loss)
   $ (0.18 )   $ (0.01 )   $ (0.19 )


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended September 30, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 174,288     $ -     $ 174,288  
Cost of sales
     177,999       -       177,999  
                         
GROSS LOSS
     (3,711 )     -       (3,711 )
                         
Selling, general and administrative expenses
     6,011       -       6,011  
Impairments of long-lived assets
     4,353       -       4,353  
                         
INCOME (LOSS) FROM OPERATIONS
     (14,075 )     -       (14,075 )
                         
Interest income, net
     1,356       -       1,356  
Other income (expense), net
     277       -       277  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     (12,442 )     -       (12,442 )
                         
Income tax (provision) benefit
     2,519       (312 )     2,207  
Equity in earnings of joint ventures
     1,127       -       1,127  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     (8,796 )     (312 )     (9,108 )
                         
Income (loss) from discontinued operations, net of taxes
     1,085       -       1,085  
                         
NET INCOME (LOSS)
   $ (7,711 )   $ (312 )   $ (8,023 )
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ (0.33 )   $ (0.01 )   $ (0.34 )
Income (loss) from discontinued operations, net of taxes
     0.04       -       0.04  
Net income (loss)
   $ (0.29 )   $ (0.01 )   $ (0.30 )
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ (0.33 )   $ (0.01 )   $ (0.34 )
Income (loss) from discontinued operations, net of taxes
     0.04       -       0.04  
Net income (loss)
   $ (0.29 )   $ (0.01 )   $ (0.30 )


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Nine Months Ended September 30, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 577,693     $ -     $ 577,693  
Cost of sales
     568,005       -       568,005  
                         
GROSS PROFIT
     9,688       -       9,688  
                         
Selling, general and administrative expenses
     18,861       -       18,861  
Impairments of long-lived assets
     4,353       -       4,353  
                         
INCOME (LOSS) FROM OPERATIONS
     (13,526 )     -       (13,526 )
                         
Interest income, net
     4,176       -       4,176  
Other income (expense), net
     (514 )     -       (514 )
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     (9,864 )     -       (9,864 )
                         
Income tax (provision) benefit
     1,982       (936 )     1,046  
Equity in earnings of joint ventures
     2,750       -       2,750  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     (5,132 )     (936 )     (6,068 )
                         
Income (loss) from discontinued operations, net of taxes
     638       -       638  
                         
NET INCOME (LOSS)
   $ (4,494 )   $ (936 )   $ (5,430 )
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ (0.19 )   $ (0.03 )   $ (0.22 )
Income (loss) from discontinued operations, net of taxes
     0.02       -       0.02  
Net income (loss)
   $ (0.17 )   $ (0.03 )   $ (0.20 )
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ (0.19 )   $ (0.03 )   $ (0.22 )
Income (loss) from discontinued operations, net of taxes
     0.02       -       0.02  
Net income (loss)
   $ (0.17 )   $ (0.03 )   $ (0.20 )


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended June 30, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 219,880     $ -     $ 219,880  
Cost of sales
     210,704       -       210,704  
                         
GROSS PROFIT
     9,176       -       9,176  
                         
Selling, general and administrative expenses
     7,455       -       7,455  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     1,721       -       1,721  
                         
Interest income, net
     1,332       -       1,332  
Other income (expense), net
     (799 )     -       (799 )
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     2,254       -       2,254  
                         
Income tax (provision) benefit
     (1,155 )     (312 )     (1,467 )
Equity in earnings of joint ventures
     1,129       -       1,129  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     2,228       (312 )     1,916  
                         
Income (loss) from discontinued operations, net of taxes
     (121 )     -       (121 )
                         
NET INCOME (LOSS)
   $ 2,107     $ (312 )   $ 1,795  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.08     $ (0.01 )   $ 0.07  
Income (loss) from discontinued operations, net of taxes
     (0.01 )      -       (0.01 ) 
Net income (loss)
   $ 0.07     $ (0.01 )   $ 0.06  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.08     $ (0.01 )   $ 0.07  
Income (loss) from discontinued operations, net of taxes
     (0.01 )      -       (0.01 ) 
Net income (loss)
   $ 0.07     $ (0.01 )   $ 0.06  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Six Months Ended June 30, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 403,405     $ -     $ 403,405  
Cost of sales
     390,006       -       390,006  
                         
GROSS PROFIT
     13,399       -       13,399  
                         
Selling, general and administrative expenses
     12,850       -       12,850  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     549       -       549  
                         
Interest income, net
     2,820       -       2,820  
Other income (expense), net
     (790 )     -       (790 )
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     2,579       -       2,579  
                         
Income tax (provision) benefit
     (537 )     (624 )     (1,161 )
Equity in earnings of joint ventures
     1,622       -       1,622  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     3,664       (624 )     3,040  
                         
Income (loss) from discontinued operations, net of taxes
     (447 )     -       (447 )
                         
NET INCOME (LOSS)
   $ 3,217     $ (624 )   $ 2,593  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.14     $ (0.02 )   $ 0.12  
Income (loss) from discontinued operations, net of taxes
     (0.02 )     -       (0.02 )
Net income (loss)
   $ 0.12     $ (0.02 )   $ 0.10  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.14     $ (0.02 )   $ 0.12  
Income (loss) from discontinued operations, net of taxes
     (0.02 )     -       (0.02 )
Net income (loss)
   $ 0.12     $ (0.02 )   $ 0.10  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
 
 
Three Months Ended March 31, 2006
  
   
As reported
    
Adjustments
    
As restated
  
                   
NET SALES
   $ 183,525     $ -     $ 183,525  
Cost of sales
     179,302       -       179,302  
                         
GROSS PROFIT
     4,223       -       4,223  
                         
Selling, general and administrative expenses
     5,395       -       5,395  
Impairments of long-lived assets
     -       -       -  
                         
INCOME (LOSS) FROM OPERATIONS
     (1,172 )     -       (1,172 )
                         
Interest income, net
     1,488       -       1,488  
Other income (expense), net
     9       -       9  
                         
INCOME (LOSS) FROM CONTINUING OPERATIONS
                        
BEFORE INCOME TAXES AND EQUITY EARNINGS
     325       -       325  
                         
Income tax (provision) benefit
     618       (312 )     306  
Equity in earnings of joint ventures
     493       -       493  
                         
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     1,436       (312 )     1,124  
                         
Income (loss) from discontinued operations, net of taxes
     (326 )     -       (326 )
                         
NET INCOME (LOSS)
   $ 1,110     $ (312 )   $ 798  
                         
EARNINGS (LOSS) PER SHARE - BASIC:
                        
                         
Net income (loss) from continuing operations
   $ 0.05     $ (0.01 )   $ 0.04  
Income (loss) from discontinued operations, net of taxes
     (0.01 )     -       (0.01 )
Net income (loss)
   $ 0.04     $ (0.01 )   $ 0.03  
                         
EARNINGS (LOSS) PER SHARE - DILUTED:
                        
                         
Net income (loss) from continuing operations
   $ 0.05     $ (0.01 )   $ 0.04  
Income (loss) from discontinued operations, net of taxes
     (0.01 )     -       (0.01 )
Net income (loss)
   $ 0.04     $ (0.01 )   $ 0.03  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
September 30, 2007
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 68,716     $ -     $ 68,716  
Short-term investments
     -       -       -  
Accounts receivable, net
     169,374       -       169,374  
Inventories, net
     111,782       -       111,782  
Income taxes receivable
     13,668       1,027       14,695  
Deferred income taxes
     6,855       -       6,855  
Other current assets
     5,719       -       5,719  
Total current assets
     376,114       1,027       377,141  
                         
Property, plant and equipment, net
     309,316       -       309,316  
Investments
     47,009       528       47,537  
Non-current deferred tax asset, net
     10,409       1,706       12,115  
Other assets
     7,853       -       7,853  
                         
Total assets
   $ 750,701     $ 3,261     $ 753,962  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 79,724     $ -     $ 79,724  
Accrued expenses
     49,070       -       49,070  
Total current liabilities
     128,794       -       128,794  
                         
Non-current tax liabilities
     60,920       -       60,920  
Executive retirement liabilities
     21,883       -       21,883  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,628,940 shares
     13,314       -       13,314  
Additional paid-in capital
     38,012       -       38,012  
Accumulated other comprehensive loss
     (35,798 )     4       (35,794 )
Retained earnings
     523,576       3,257       526,833  
Total shareholders' equity
     539,104       3,261       542,365  
                         
Total liabilities and shareholders' equity
   $ 750,701     $ 3,261     $ 753,962  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
June 30, 2007
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 84,183     $ -     $ 84,183  
Short-term investments
     -       -       -  
Accounts receivable, net
     164,507       -       164,507  
Inventories, net
     117,551       -       117,551  
Income taxes receivable
     8,387       1,027       9,414  
Deferred income taxes
     6,536       -       6,536  
Other current assets
     3,880       -       3,880  
Total current assets
     385,044       1,027       386,071  
                         
Property, plant and equipment, net
     320,058       -       320,058  
Investments
     43,974       502       44,476  
Non-current deferred tax asset, net
     11,894       1,801       13,695  
Other assets
     8,028       -       8,028  
                         
Total assets
   $ 768,998     $ 3,330     $ 772,328  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 97,081     $ -     $ 97,081  
Accrued expenses
     45,028       -       45,028  
Total current liabilities
     142,109       -       142,109  
                         
Non-current tax liabilities
     60,387       -       60,387  
Executive retirement liabilities
     21,993       -       21,993  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,612,191 shares
     13,306       -       13,306  
Additional paid-in capital
     37,159       -       37,159  
Accumulated other comprehensive loss
     (36,371 )     (22 )     (36,393 )
Retained earnings
     530,415       3,352       533,767  
Total shareholders' equity
     544,509       3,330       547,839  
                         
Total liabilities and shareholders' equity
   $ 768,998     $ 3,330     $ 772,328  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
March 31, 2007
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 58,629     $ -     $ 58,629  
Short-term investments
     -       -       -  
Accounts receivable, net
     170,912       -       170,912  
Inventories, net
     116,123       -       116,123  
Income taxes receivable
     7,386       1,027       8,413  
Deferred income taxes
     6,723       -       6,723  
Other current assets
     9,152       -       9,152  
Total current assets
     368,925       1,027       369,952  
                         
Property, plant and equipment, net
     312,456       -       312,456  
Investments
     42,826       497       43,323  
Non-current deferred tax asset, net
     11,746       1,604       13,350  
Other assets
     8,807       -       8,807  
                         
Total assets
   $ 744,760     $ 3,128     $ 747,888  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 82,133     $ -     $ 82,133  
Accrued expenses
     44,307       -       44,307  
Total current liabilities
     126,440       -       126,440  
                         
Non-current tax liabilities
     56,942       -       56,942  
Executive retirement liabilities
     21,817       -       21,817  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,610,191 shares
     13,305       -       13,305  
Additional paid-in capital
     36,018       -       36,018  
Accumulated other comprehensive loss
     (41,400 )     (27 )     (41,427 )
Retained earnings
     531,638       3,155       534,793  
Total shareholders' equity
     539,561       3,128       542,689  
                         
Total liabilities and shareholders' equity
   $ 744,760     $ 3,128     $ 747,888  
 

 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
September 30, 2006
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 73,343     $ -     $ 73,343  
Short-term investments
     9,750       -       9,750  
Accounts receivable, net
     132,033       -       132,033  
Inventories, net
     109,675       -       109,675  
Deferred income taxes
     7,951       -       7,951  
Other current assets
     23,976       -       23,976  
Total current assets
     356,728       -       356,728  
                         
Property, plant and equipment, net
     311,601       -       311,601  
Investments
     47,866       451       48,317  
Other assets
     8,709       -       8,709  
                         
Total assets
   $ 724,904     $ 451     $ 725,355  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 69,210     $ -     $ 69,210  
Accrued expenses
     44,408       -       44,408  
Income taxes payable
     6,665       (771 )     5,894  
Total current liabilities
     120,283       (771 )     119,512  
                         
Executive retirement liabilities
     19,423       -       19,423  
Non-current deferred tax liabilities
     21,843       (1,976 )     19,867  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,610,191 shares
     13,305       -       13,305  
Additional paid-in capital
     34,230       -       34,230  
Accumulated other comprehensive loss
     (42,150 )     (45 )     (42,195 )
Retained earnings
     557,970       3,243       561,213  
Total shareholders' equity
     563,355       3,198       566,553  
                         
Total liabilities and shareholders' equity
   $ 724,904     $ 451     $ 725,355  


 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
June 30, 2006
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 78,793     $ -     $ 78,793  
Short-term investments
     9,750       -       9,750  
Accounts receivable, net
     153,915       -       153,915  
Inventories, net
     102,826       -       102,826  
Income taxes receivable
     7,322       -       7,322  
Other current assets
     5,957       -       5,957  
Assets of operations held for sale
     13,579               13,579  
Total current assets
     372,142       -       372,142  
                         
Property, plant and equipment, net
     301,214       -       301,214  
Investments
     45,856       442       46,298  
Non-current deferred tax asset, net
     6,841       -       6,841  
Other assets
     7,811       -       7,811  
                         
Total assets
   $ 733,864     $ 442     $ 734,306  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 69,601     $ -     $ 69,601  
Accrued expenses
     41,797       -       41,797  
Income taxes payable
     7,589       (514 )     7,075  
Liabilities of operations held for sale
     5,487       -       5,487  
Total current liabilities
     124,474       (514 )     123,960  
                         
Executive retirement liabilities
     19,212       -       19,212  
Non-current deferred tax liabilities
     22,740       (2,545 )     20,195  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,610,191 shares
     13,305       -       13,305  
Additional paid-in capital
     33,382       -       33,382  
Accumulated other comprehensive loss
     (49,189 )     (54 )     (49,243 )
Retained earnings
     569,940       3,555       573,495  
Total shareholders' equity
     567,438       3,501       570,939  
                         
Total liabilities and shareholders' equity
   $ 733,864     $ 442     $ 734,306  

 

SUPERIOR INDUSTRIES INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except per share amounts)
(Unaudited)
 
March 31, 2006
  
As reported
    
Adjustments
    
As restated
  
                   
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   $ 95,083     $ -     $ 95,083  
Short-term investments
     9,750       -       9,750  
Accounts receivable, net
     135,652       -       135,652  
Inventories, net
     109,245       -       109,245  
Deferred income taxes
     2,824       -       2,824  
Other current assets
     8,604       -       8,604  
Assets of operations held for sale
     9,901               9,901  
Total current assets
     371,059       -       371,059  
                         
Property, plant and equipment, net
     299,016       -       299,016  
Investments
     51,484       421       51,905  
Other assets
     7,565               7,565  
Non-current assets of operations held for sale
     7,922       -       7,922  
                         
Total assets
   $ 737,046     $ 421     $ 737,467  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 64,165     $ -     $ 64,165  
Accrued expenses
     39,613       -       39,613  
Income taxes payable
     16,570       (257 )     16,313  
Liabilities of operations held for sale
     11,823       -       11,823  
Total current liabilities
     132,171       (257 )     131,914  
                         
Executive retirement liabilities
     18,875       -       18,875  
Non-current deferred tax liabilities
     10,623       (3,114 )     7,509  
Commitments and contingent liabilities
     -       -       -  
Shareholders' equity:
                        
Preferred stock, $25.00 par value
                        
Authorized - 1,000,000 shares
                        
Issued - none
     -       -       -  
Common stock, $0.50 par value
                        
Authorized - 100,000,000 shares
                        
Issued and outstanding - 26,610,191 shares
     13,305       -       13,305  
Additional paid-in capital
     32,712       -       32,712  
Accumulated other comprehensive loss
     (42,725 )     (75 )     (42,800 )
Retained earnings
     572,085       3,867       575,952  
Total shareholders' equity
     575,377       3,792       579,169  
                         
Total liabilities and shareholders' equity
   $ 737,046     $ 421     $ 737,467  

 
 
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Management’s Discussion and Analysis for the First Three Quarters of 2007
Income Tax (Provision) Benefit
(Thousands of dollars)

For the Three Months Ended March 31:

The income tax benefit on income (loss) from continuing operations before income taxes and equity earnings for the three months ended March 31, 2007 was $2.8 million compared to $0.3 million for the same period last year.  The current period tax benefit on income (loss) from continuing operations before income taxes and equity earnings included a tax benefit of $0.6 million at the effective annual tax rate of 39.6 percent, compared to a tax provision of $0.3 million at an effective annual tax rate of 36.2 percent last year.  Discrete items totaled a tax benefit of $2.2 million for the first three months of 2007 versus a tax benefit of $0.6 million for the same period in 2006.  Discrete items for the first three months of 2007 relate to refunds from prior year amended returns of $0.6 million, changes in valuation reserves of $0.3 million and changes in our reserves for uncertain tax positions of $1.0 million, due principally to the expiration of a tax statue of limitation, while the $0.6 million discrete item in the first three months of 2006 relates to a reduction in previously estimated tax reserves, due to the expiration of a tax statute of limitation in that period.

For the Three and Six Months Ended June 30:

The income tax (provision) on income from continuing operations before income taxes and equity earnings for the three months ended June 30, 2007 was $(2.6) million compared to $(1.5) million for the same period last year.  The income tax (provision) benefit on income from continuing operations before income taxes and equity earnings for the six months ended June 30, 2007 was a benefit of $0.1 million compared to a provision of $(1.2) million for the same period last year.  The effective tax rate for the three months ended June 30, 2007 is 51.5 percent and 65.0 percent for the same period last year.  The effective tax rate is higher than the U.S. federal statutory rate of 35.0 percent primarily due to a discrete event of $0.5 million increase for the accrual of reserves for uncertain tax positions and related interest.  Other discrete items for the three months ended June 30, 2006 totaled $0.3 million.  The resulting effective tax rate for the first six months of 2007 is 5.3 percent and 45.0 percent for the same period last year.   The effective tax rate includes the net benefit of $1.7 million from discrete events, including the release of liabilities for uncertain tax positions, partially offset by accruals relating to tax return filings and valuation allowances.

For the Three and Nine Months Ended September 30:

The income tax (provision) benefit on income from continuing operations before income taxes and equity earnings for the three months ended September 30, 2007, was a provision of $(0.8) million compared to benefit of $2.0 million for the same period last year.  Discrete items during the current period, which totaled an additional provision of $(1.1) million, represented changes in liabilities for uncertain tax positions, valuation allowance reserves and other permanent items.   Discrete items during the prior period, which totaled a benefit of $2.2 million, represented, principally, changes in contingency reserves.

The income tax (provision) benefit on income from continuing operations before income taxes and equity earnings for the nine months ended September 30, 2007, was a provision of $(0.6) million compared to a benefit of $1.0 million for the same period last year. Discrete items in 2007 resulted in an additional tax benefit of $1.4 million, principally due to accrual adjustments relating to tax return filings and changes in liabilities for uncertain tax positions. The 2006 tax benefit of $1.0 million was represented primarily by the discrete items during that period, including changes in valuation allowance reserves.