Exhibit 99.1
SUPERIOR INDUSTRIES FIRST QUARTER NET INCOME SURGES TO NEW RECORD
AS REVENUE AND UNIT SHIPMENTS ALSO REACH ALL-TIME HIGHS
NET INCOME INCREASES 30% TO $0.83 PER DILUTED SHARE
REVENUE INCREASES 12% TO $208.0 MILLION
UNIT WHEEL SHIPMENTS INCREASE 3%
VAN NUYS, CALIFORNIA, -- April 11, 2003 -- SUPERIOR INDUSTRIES
INTERNATIONAL, INC. (NYSE:SUP) announced today that net income for the first
three months of 2003 increased 30% to a new record, as revenue and unit wheel
shipments also rose to all-time first quarter highs.
FIRST QUARTER RESULTS
For the three months ended March 31, 2003, revenue increased 12% to
$207,985,000 from $186,532,000 a year earlier. Unit wheel shipments increased
3%. Net income rose to $22,266,000, or $0.83 per diluted share, from
$17,172,000, or $0.65 per diluted share, for the first quarter of 2002.
This year's first quarter results included the write-off of non-recurring
start-up costs of $2,500,000 related to the launch of Superior's new aluminum
suspension components business. The company's share of profits from its joint
venture aluminum wheel manufacturing operation in Hungary was $1,948,000.
At March 31, 2003, Superior had working capital of $272,293,000, including
cash and short-term investments of $155,620,000, and no debt.
EFFICIENCY GAINS
Chairman and Chief Executive Officer Louis Borick said, "The increase in net
profit margin for the first quarter to 10.7% from 9.2% a year earlier was
primarily the result of efficiency improvements in both of our facilities in
Mexico, especially at our newest plant in Chihuahua that came on-line in late
2001. Our managers and staff deserve a great deal of credit for this
accomplishment. Superior's strong bottom-line results also reflected a favorable
mix of wheel production for this year's first quarter, with more large-diameter
and chrome-plated wheels in the total than last year.
"We built Superior by consistently meeting our customers' toughest design
and engineering specifications, cost requirements, and delivery schedules. This
well-earned reputation is the reason we are winning major new wheel supply
contracts from current customers and adding important OEM accounts. Our
aggressive expansion plan will allow us to sustain our superior performance at
the far higher production rates that our customers will require in the future."
INVESTING IN GROWTH
President and COO Steve Borick said, "Our geographic expansion has been
enormously successful - our plants in Mexico and our joint venture facility in
Hungary are among the most advanced in the world. These plants also have served
as test beds of Superior's ability to operate internationally. The experience
has taught us valuable lessons that will be increasingly important as we prepare
for further international expansion in the years ahead.
"Capacity expansion is only one of the ways we are investing in Superior's
growth. In addition to our Commitment to Excellence and employee training, we
have implemented programs to identify best practices within our organization and
are developing a formal mechanism to ensure that they quickly are adopted
throughout our company. We also are improving our operating controls and
reporting processes, which will be facilitated by the upgrades to our management
information systems and internal computer networks planned for 2003. We are
listening to new ideas coming both from management ranks as well as from our
manufacturing employees - we are open to bottom-up as well as top-down
improvements. These programs will help us maintain the quality Superior is known
for while we achieve savings at every one of our plants and in every aspect of
our business, from the shop floor to engineering to sales to finance."
OUTLOOK
The COO continued, "Superior delivered an outstanding first quarter,
especially in view of current geopolitical events and continued economic
uncertainty. We continue to gain share of the aluminum wheel market, and based
on new wheel supply programs already announced or in the pipeline, the outlook
for the year's second half is encouraging. However, we are cautious as we look
into the next couple of months, because production cut-backs for certain models
recently announced by some of our OEM customers are likely to affect aluminum
wheel demand in the second quarter."
STOCK REPURCHASE UPDATE
Superior has repurchased 4,573,000 shares of its common stock since 1995,
including 81,000 shares repurchased during the first quarter of 2003.
Approximately 3,428,000 shares remain to be repurchased under the March 2000
Board of Directors' authorization.
ABOUT SUPERIOR INDUSTRIES
Superior supplies aluminum wheels and other aluminum automotive components
to Ford, General Motors, DaimlerChrysler, Audi, BMW, Isuzu, Land Rover, Mazda,
MG Rover, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. For additional
information, visit Superior's Web site at 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 Condensed Statements of Income (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended
March 31
2003 2002
------------ ------------
Net Sales $ 207,985 $ 186,532
Costs and Expenses
Cost of Sales 168,106 154,703
Selling and Administrative Expenses 5,756 5,140
Suspension Components Start-up Costs 2,500 1,653
------------ ------------
Income From Operations 31,623 25,036
Equity in Earnings of Joint Ventures 1,934 772
Interest Income, net 912 785
Miscellaneous Expense, net (213) (174)
------------ ------------
Income Before Income Taxes 34,256 26,419
Income Taxes 11,990 9,247
------------ ------------
Net Income $ 22,266 $ 17,172
============ ============
Earnings Per Share:
Basic $ 0.84 $ 0.66
Diluted $ 0.83 $ 0.65
------------ ------------
Weighted Average and
Equivalent Shares Outstanding:
Basic 26,597,000 25,988,000
Diluted 26,958,000 26,607,000
============ ============
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Condensed Balance Sheets (Unaudited)
(Dollars in Thousands)
As of March 31
2003 2002
-------- --------
Current Assets $386,654 $312,456
Property, Plant and Equipment, net 250,376 227,353
Investments and Other Assets 44,274 35,169
-------- --------
$681,304 $574,978
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Current Liabilities $114,361 $ 88,555
Long-Term Liabilities 18,987 20,698
Shareholders' Equity 547,956 465,725
-------- --------
$681,304 $574,978
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