EX-99.1 3 v96446aaexv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

Superior Industries Reports
Record Fourth Quarter Results

Expects Lower First Quarter 2004

Year Over Year Results Compared To Strong Q1 2003

     VAN NUYS, CALIFORNIA — February 6, 2004 — Superior Industries International, Inc. (NYSE:SUP) today announced operating results for the fourth quarter and 2003.

     “With the launch of a record number of new products and simultaneous implementation of a multi-plant expansion program that is vital to our future, 2003 was challenging for Superior. Our people responded by delivering record revenue and unit wheel shipments for the year, and topped it off with record revenue, unit wheel shipments and net income in the fourth quarter,” said Louis L. Borick, Chairman and Chief Executive Officer.

Fourth Quarter Results

     For the three months ended December 31, 2003, revenue increased 17.3% to $230,705,000, an all-time high, from $196,735,000 for the fourth quarter of 2002 as unit wheel shipments rose 12.4% to a new quarterly record. Net income increased 2.8% to a record $23,051,000, or $0.85 per diluted share, compared to $22,431,000, or $0.83 per diluted share, for the same period a year earlier.

     Beginning in 2003, Superior’s aluminum suspension components business was included in the determination of gross profit and not shown as a separate line item. Operating results for the fourth quarter of 2003 included a loss from this business of approximately $2,200,000 compared to $2,600,000 in 2002. The company’s share of profits from its joint venture aluminum wheel manufacturing operation in Hungary for this year’s fourth quarter was $2,100,000.

2003 Results

     For the twelve months ended December 31, 2003, revenue increased 7.4% to a record $840,349,000 from $782,599,000 for 2002. Unit wheel shipments increased 3.0% to over 15 million, a new annual record. Net income declined to $73,720,000, or $2.73 per diluted share, compared to $78,250,000, or $2.91 per diluted share for 2002.

     Operating results for 2003 included a loss of approximately $10,500,000 from the suspension components business. The company’s share of profits from its joint venture in Hungary was $8,600,000 for 2003 compared to $6,300,000 a year ago.

     At December 31, 2003, Superior had working capital of $304,889,000, including cash and cash equivalents of $156,847,000, and no debt.

Operations Review

     President and Chief Operating Officer Steve Borick said, “While our profitability in 2003 was affected by significant one-time operating expenses for Superior’s multi-plant expansion programs and an unprecedented number of new product launches, we made progress in alleviating these margin pressures in the fourth quarter.

 


 

     “Superior won more new and replacement aluminum wheel supply contracts in 2003 than ever before as we continued to expand share of the OEM aluminum wheel business. We initiated 31 new and replacement programs, involving 96 different wheel styles, including entirely new business for the popular Ford F150, GM’s Chevrolet Malibu and Cadillac SRX, Mitsubishi Endeavor, Mazda 6 Sedan and the Toyota Solara Coupe. Our efforts to diversify our customer base were rewarded, as wheel shipments to international customers increased 29% and represented 10% of our total shipments for the year, a new high.

     “Superior has been in a state of virtually continuous capacity expansion for the past several years. With the near completion during 2003 of our latest expansion program, we now have increased our annual aluminum wheel production capacity by approximately 25% since 2000. All told, we invested approximately $120 million in this project, financed entirely from internal resources.

     “Our OEM customers will continue to demand higher wheel volumes at increasingly competitive prices. To meet these requirements, we are focused on a long-term strategy to realize efficiency and productivity gains through automation, implementation of best practices, and employee training and development. In this context, the recent launch of our Vision and Execution process was another significant step forward. Vision and Execution formalizes the process of selecting investment projects that are most likely to have a positive impact on the way we manage our business. By facilitating communication and teamwork, this process is a systematic and rigorous way to ensure that we identify, evaluate, communicate and implement the most productive ideas consistently throughout our company. We are fortunate to have both the experienced, motivated management team and the financial strength we need to realize the full value of Superior’s manufacturing assets.”

First Quarter Outlook

     Superior also announced that it currently expects earnings for the first quarter of 2004 to be approximately $0.50 per diluted share. The impact of lower pricing, which is a result of the intense global competitive environment in our specific product group, and certain operating problems that are undergoing focused improvement programs at several of our expanded plants are the main causes for this reduced outlook.

Conference Call

     Superior will host a conference call beginning at 10:00 AM PT (1:00 PM ET) today that will be broadcast on the company’s website, www.supind.com. Investors, analysts, stockholders, news media and the general public are invited to listen to the webcast. Replay of the webcast will be available at this same Internet address shortly after the conclusion of the conference call.

     In addition to reviewing the company’s fourth quarter and full year 2003 results, during the conference call the company also plans to discuss the outlook for 2004, as well as other financial and operating matters. Additionally, the answers to questions posed to management during the call might disclose additional material information.

About Superior Industries

     Superior supplies aluminum wheels and other aluminum automotive components to Ford, General Motors, DaimlerChrysler, Audi, BMW, Isuzu, Jaguar, Land Rover, Mazda, MG Rover, Mitsubishi, Nissan, Subaru, Toyota, and Volkswagen. For additional information, visit www.supind.com.

Forward-Looking Statements

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors and risks discussed from time to time in the company’s Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

(tables attached)

 


 

SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

                                     
        Three Months Ended   Twelve Months Ended
        December 31   December 31
       
 
        2003   2002   2003   2002
       
 
 
 
NET SALES
  $ 230,705     $ 196,735     $ 840,349     $ 782,599  
 
Costs and Expenses
                               
   
Cost of Sales
    192,580       157,551       716,558       642,289  
   
Selling and Administrative Expenses
    5,735       5,143       22,902       22,313  
   
Aluminum Components Start-up Costs
          2,560             8,530  
 
   
     
     
     
 
INCOME FROM OPERATIONS
    32,390       31,481       100,889       109,467  
 
Equity in Earnings of Joint Ventures
    2,102       1,714       8,655       6,260  
 
Interest Income, net
    553       1,133       2,727       3,519  
 
Miscellaneous Income, net
    417       181       1,144       1,138  
 
   
     
     
     
 
INCOME BEFORE INCOME TAXES
    35,462       34,509       113,415       120,384  
 
Income Tax Expense
    12,411       12,078       39,695       42,134  
 
   
     
     
     
 
NET INCOME
  $ 23,051     $ 22,431     $ 73,720     $ 78,250  
 
   
     
     
     
 
EARNINGS PER SHARE
                               
 
Basic
  $ 0.86     $ 0.85     $ 2.76     $ 2.97  
 
Diluted
  $ 0.85     $ 0.83     $ 2.73     $ 2.91  
 
   
     
     
     
 
WEIGHTED AVERAGE AND EQUIVALENT SHARES OUTSTANDING
                               
 
Basic
    26,745,000       26,579,000       26,673,000       26,372,000  
 
Diluted
    27,108,000       27,004,000       27,033,000       26,907,000  
 
   
     
     
     
 

SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands)

                 
    December 31
    2003   2002
   
 
Current Assets
  $ 388,510     $ 368,941  
Property, Plant and Equipment, net
    261,733       235,566  
Investments and Other Assets
    52,962       41,289  
 
   
     
 
 
  $ 703,205     $ 645,796  
 
   
     
 
Current Liabilities
  $ 83,621     $ 97,123  
Long-Term Liabilities
    27,378       18,242  
Shareholders’ Equity
    592,206       530,431  
 
   
     
 
 
  $ 703,205     $ 645,796