Superior Industries International, Inc. (NYSE:SUP)
today reported net income of $6.4 million, or $0.23 per diluted share for the second quarter of 2012. This compares with net income of $14.7 million, or $0.53 per diluted share, for the second quarter of 2011.
For the 2012 second quarter, consolidated net sales increased 3 percent, to $215.1 million from $208.7 million in the comparable period a year ago. Unit shipments increased 14 percent to 3.3 million from 2.9 million in last year’s second quarter. Gross profit was $15.7 million, or 7 percent of net sales, compared with $19.5 million, or 9 percent of net sales, in the comparable period a year ago.
The company said the average unit selling price decreased 10 percent in the second quarter of 2012, largely attributable to a decline in average aluminum price, which is generally passed through to customers, along with a weaker product mix and a decline in the value of the Mexican peso relative to the U.S. dollar. The decline in gross profit and margin percentage reflected the weaker product mix, along with manufacturing challenges in the U.S. and the negative impact from foreign currency rates. All manufacturing facilities operated at or near full capacity to meet the increase in unit volume. Higher operating costs in the U.S. offset a strong performance at the company’s facilities in Mexico.
“I am pleased that our factories, especially our plants in Mexico, met a significant increase in demand for our product despite already operating at very high utilization rates,” said Steven J. Borick, Chairman, Chief Executive Officer and President. “However, when considering the ever-increasing product standards that we must meet in the context of today’s pricing, we still are incurring significant operating and profitability challenges in our U.S. manufacturing facilities. We continue to invest in capital equipment and talent to address these challenges and remain confident we can improve the performance of our U.S. plants that today remain critical to meeting the needs of our customers.”