The company recently announced that Borick will retire as Chief Executive Officer and President and that the board is initiating a search for his successor.
“I am pleased to be able to embark on the next stage of my life at this time, knowing that Superior is financially strong and firmly in the number one position as a producer of aluminum automotive wheels in North America,” Borick said.
Selling, general and administrative expenses for the 2013 third quarter increased to $8.3 million, or 4 percent of net sales, from $6.0 million, or 3 percent of net sales, for the comparable period in 2012. The increase includes $1.1 million of executive severance costs associated with the departure of two executives, as well as a series of smaller accrual adjustments.
Consolidated income from operations for the 2013 third quarter decreased to $7.2 million, or 4 percent of net sales, from $9.1 million, or 5 percent of net sales, last year.
Income tax expense for the 2013 third quarter was $2.5 million, or 33 percent of pretax income, which compared to a $5.2 million tax benefit for the same period in 2012. The 2013 effective tax rate was favorably affected by income tax credits and foreign income taxes that are taxed at rates lower than the U. S. statutory rates. The 2012 tax benefit related to the settlement of a 2004 Mexican income tax audit.
At September 29, 2013, working capital was $318.9 million, including cash, cash equivalents and short-term investments of $186.5 million. At December 30, 2012, working capital was $338.3 million, including cash, cash equivalents and short-term investments of $207.3 million. Superior has no bank or other interest bearing debt.
Consolidated net sales for the first nine months of 2013 were $597.1 million, compared with $611.4 million for the comparable period a year ago, primarily reflecting a decrease in the number of wheels shipped. Unit shipments for the first nine months of 2013 were 8.9 million versus 9.3 million a year ago. The negative impact of lower unit sales volume was offset partially by a 1 percent increase in the average selling price, due to impact of an improved sales mix, offset partially by a decline in the value of the aluminum component of sales.