Exhibit 99.1
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 | | | News Release | |
Superior Affirms Strong Liquidity Position and
Provides Update RegardingCOVID-19
SOUTHFIELD, MICHIGAN –March 23, 2020 –Superior Industries International, Inc. (NYSE:SUP), one of the world’s leading aluminum wheel suppliers, today provided a business update regardingCOVID-19, and its impact on the automotive industry and Superior’s operations.
The impact from theCOVID-19 pandemic has driven unprecedented market volatility over the last several weeks and is having a widespread adverse effect on the automotive industry on both consumer demand and OEM automotive production. While the extent of the impact is unknown and the situation is evolving rapidly, key customers have announced temporary closure of nearly all production facilities in Europe and North America. The announced timing and duration of these closures varies by customer and facility, but the outcome is highly uncertain.
In light of this uncertainty, Superior is taking further action to both ensure the health and safety of its employees globally and respond to the current industry production environment by reducing costs and managing liquidity. The Company anticipates that production at all its facilities will be halted in the coming days; however, the duration of these closures will be dependent on how the situation evolves.
Other actions to minimize the impact of the lower production levels on profit and cash flow include significantly reducing capital expenditures, balancing the Company’s labor force with the production outlook, and reducing discretionary spending.
In addition, out of an abundance of caution in this uncertain time, the Company has fully drawn its $160 million U.S. revolving credit line and has drawn €48 million on its €60 million European revolving credit line. Both revolving credit facilities mature in May 2022. Superior does not anticipate any issues meeting the financial covenants under these facilities. These funds, along with existing cash already on hand, afford Superior significant available cash liquidity. The Company has no other significant funded debt obligations until May 2024. Superior has maintained liquidity levels in line withyear-end 2019, well in excess of $250 million.
Finally, due to the current unprecedented economic uncertainty in North America and Europe, Superior is suspending its previously provided full year 2020 Outlook. Superior will provide additional details around its outlook for 2020 during the first quarter 2020 earnings call.
Majdi Abulaban, President and Chief Executive Officer of Superior commented, “In the face of the uncertainty created byCOVID-19, we must decisively take the necessary precautionary measures to protect our employees, while managing Superior’s operations, costs, and liquidity prudently. The management team at Superior is planning for various possible scenarios and will take action accordingly as we move forward.”
Mr. Abulaban continued, “As we demonstrated in 2019, we believe that we are well prepared to move swiftly to adapt our business to changing production levels. I feel very confident in our company’s and employees’ ability to manage through this very challenging time.”
