SUP - Earnings call 3 2023 | Superior Industries International, Inc.

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Operator

Welcome to Superior Industries Third Quarter 2022 Earnings Call. [Operator Instructions] We are joined this morning by Majdi Abulaban, President and CEO; Tim Trenary, Executive Vice President and CFO. I will now hand you over to your host Tim Trenary, to begin today's conference.

C. Trenary

Good morning, everyone, and welcome to our third quarter 2023 earnings call.

During our call this morning, we will be referring to our earnings presentation, which, along with our earnings release, is available on the Investor Relations section of Superior's website. I am joined on the call by Majdi Abulaban, our President and Chief Executive Officer. today America. Dora, joined and Vice also North President, am by Senior Michael President I

annual turn call statements I subject Private remind presentation Before Securities the commented to everyone X like I or to report Act provisions that the to full the the statement. And the would XXXX. a Limitation SEC discussion for safe any company's of today Reform Form forward-looking more on Please safe contained of and harbor on presentation current this refer XX-K for forward-looking over of in are this to the to risk including Majdi, of company's Slide filings, complete harbor factors. statements

impact of items measures provide are comparable also appendix Majdi accordance U.S. the most to calculated directly of therefore, to be and with certain presentation. With in various U.S. call not that, the will the Reconciliations the today. be discussing turn a measures the update. portfolio of I'll These GAAP found in these to business over can GAAP. measures and, We exclude non-GAAP non-GAAP measures

Majdi Abulaban

Thank our you, I quarter everyone. Tim, start joining you will X. on third with Slide results. to today and our call for hello, review Thank

is and in super results much team operational delivered portfolio. This a positioning up environment. challenging a operating was the quarter Our solid testament competitive both teams up, content wheel very the XXth of was quarter. the consecutive despite per EBITDA to and were margins the our up for

sales foreign being prior UAW impact production, lingering third a leading remain strike by on the seeing are headwinds for year. results. our industry overall exchange value-added key our had we recovery markets versus quarter The marginal vehicle While in our flat to pressured adjusted

Recall, X fleet shutdown DW. mainly their for to However, Europe, And remain have distributors the impact our and America, our we European competitive continue on of production our what restocked fashion wholesalers frequent the for action, result saw at step a portfolio in quarter for winter EUR the our key in the in down typically we does of ], production we the commercial strike customers we said some announced and is production, aftermarket profitability. season. We facility footprint control, long-term transforming Verdal line top focused fourth our our that Mexico at strategic this appear decline stated operational as this where Germany. we our regional leveraging In recovery Having X% improvement third to it GM we with at in can XX driven differentiated demand have quarter. In excellence announced when the our by especially grow. X% and was would content that, of customers, North function million quarter, showing a operation. in the discipline, goal sales limited in [ position, expect elevating a meaningful in that

speak in track to this the a make in presentation. are to will on I 'XX. We later reality it

taking while in underperforming have pricing long-term to action with parts profitability. costs we rising been successful drive our input and Lastly, aligning prune

capital having year-to-date spend in prudence position than to continuing the Germany. despite wheels and our during quarter, finishes. liquidity lighter to customers. Further, X% to year-over-year basis a grow we OEM this to safety with consumer meet through debt are We comprise per and Content demand larger wheel further and million build maintaining of yield now premium are on action more declined net to a shipments of for CapEx are premium stock enhancing Overall, $XX $XXX million. our at related XX% strong million $XXX

our full reflect and on the fourth of deconsolidation the German our impact our updating the UAW outlook to both strike are We operations, year quarter of results.

and including value to volume million working year we capital, using adjusted are production the to of in and flow are reflect cash narrowing guidance guidance buildup range. full our $XX protect Poland. reducing temporary and the transporter We Further, safety operating EBITDA our to facilitate customers stock

operating 'XX. flow We the the of on upon to reverse impact in project completion cash expect early

We our to our we our later outlook have expenditures Tim since this X. focus strong XXXX. as performance highlights more are Slide also provide will lowering capital on the updated intensity for outlook lowering we on of capital the which in business. seen detail presentation. On

XXXX of from comparison last from the I months. key performance Here, was XX and the showing metrics

has increased robust significantly and reduced While declined, in margins, per and expanded we have delivered industry production wheel. content profitability, debt net growth value-added sales

continue navigate teams am the our have years. challenges, to continue these made recent on progress we throughout through to I metrics, operating business the incredible to improvements will While make to confident we thanks

Moving on to Slide X.

premium this our launches position on continued with platforms recent the several side of chart. being technologies Our left in has of on utilized

This pricing per business. you in our content as wheel pricing, input growth been in our with growth content XXXX. by Notably, premium has right product content Importantly, wheel. with can of we see customers and per resulted cost the sustained improved and content in compared in has aligning side, growth to successful XX% combined improved the substantial with have price

Turning a current X, on snapshot Slide to of operating showing the environment.

lower in continued and inflation. seen to chain While of we moderation impact supply have constraints,

recent industry quarters. global decelerating is to fact, production In compared

automotive regions production production both up constrained year in X%, slight regions flat key nearly and year-over-year industry industry. remain customers for our the in XXXX Although Recall, basis. is a was on our X a

decline declines both production our becoming strike. That enhance in fourth said, competitive to wheels we to Notably, the are Now the these reflecting evidenced substantial see secular benefit drive driven regions is prior demand our despite for to for the lower more of localized expected are we profitable IHS of the position. the are preference premium our in the quarter, positioned quarter industry the balance impact third by constraints, coming well XXXX of challenges, and is across and growth, the Ford GM long-term production year. footprint, the year. and in quarter versus to demand in projecting in making footprint improvements

Turning on Slide to X.

Another to results the compared of view wider our industry.

key production wider sales value-added as adjusted flat as industry. Our customers well our remain compared the of growth to

As unfavorable America, of and to the loss Europe X%. Silao General Further, plant come in growth eventually actually at finally, while long-term noted Motors a deconsolidation mix of which quarter, customers North were earlier, production pressure down the our back. line. German in ultimately in And will ongoing top our key our has revenue, resulted continued in supporting operations temporary our shutdown

production Moving footprint. we our in announced for improve on how and the brief on our plans to to recap our fits action XX August at a Slide German it facility strategic in wider

German been enhancement locations to is locally. of serve as made the the [ The and transfer Verde us the shield high-performing of Germany while have Europe. These OEMs proceedings. a to Most key move are seek differentiator this is better margin will remain taken Mexico have that in actions in us derisk our tough profitability U.S. taken customers the facility Poland, XXX,XXX which driving footprint roughly earlier. I'd in and strategically of to manufacturing now project have our in result plan, to It capacity address like plans European at Poland. facility transformation long supply has Actually, wheels a protective ] in recent function This our our they increasingly insolvency located in global continuation proceedings. sites transform chains the due of terms and class as represents for we in I known wider on actions of on footprint likely is to the key the of of is Slide giving we XX. Chapter improvement facilities to Our footprint. source a opportunity to we across XX components that enabling the throughout To the this closure driver mentioned step better now years. in to the the remainder track our

actions As are proceeding noted Germany slide, previous our as planned. on the in

We focused our impact capacities buildup of capabilities to on shifting now to will safety in stock we improve ensure Poland. of a service as are and production customers no require significant Poland, which on our

administrative rationalize warehouses structure. consolidating overhead overall improve our while In aftermarket working addition, to net to cost

match We also with to customers pricing our continued costs. have to rising adjust to collaborate European

year-to-date. XX% content Our by price in efforts have the been fruitful and as increase evidenced

production German launches, Additionally, planned programs we to derisk our wheel have were to facilities. originally launch that in of Poland transferring worked to

to of as part we better carrying meant our margins portfolio Lastly, has product This XX/XX of our support and approach, mix. wheels our book programs from holding have business. XXX,XXX from proved roughly

teams wheels to have be is programs on strategy. Overall, ultimately done, our continue a job through this to narrowing progress profitable the have While long-term and to a margin that deliver drive do that the with our critical between America, to to these excited were I sizable in not were advancing to forward. In North am growth remains is pleased in Europe we solid business closing, made [indiscernible] and this momentum results. continued marginally managing our figure, note challenges great gap it I'm

Our our story making play out sort in footprint and to content improving great overall are strides profitable we long-term continues growth. to

remain the to for deliver we advancing cash costs focused on sustained shareholders. our to generating remainder XXXX, of our Looking optimizing portfolio, value and

financial Now details Tim? I on Tim to over more our will turn results. to the provide call

C. Trenary

of of as in at SPG SPG only Superior impact third and the month that income this the balance footprint as excluded accounting excluded is Furthermore, Industries less the Majdi. produced require commencement X% rise inter-projective and year, The Germany Werdohl, the approximately wheels than More financial beginning Superior million, the the of our of a for shield and our you, are our results, had administered deconsolidation sales deconsolidated for from third footprint a of XX,XXX of and principles of in Industries $X proceedings, of The on quarter. The manufacturing in SPG local is sales production $XX financial statement as from not a statements. continuation approximately reorganization of September $X competitive an otherwise structure. third and excluded to wheel SPG strategic the EBITDA. $X respectively, SPG's of balance remaining from sheet, SPG, Accordingly, August XX quarter. we facility or million transformation end third On process. Generally Thank specifically, net journey of charge million the sales. the SPG deconsolidation quarter announced with manufacturing production action. value-added of optimization are more of the quarter statement shipments sheet a cost to million be September accepted proceeds local adjusted gave the quarter German operations from

of EBITDA $XX was a loss was the quarter per million, loss $XXX sales quarter. a quarter million financial to of basis sales net for the adjusted million the after in cost year a Quarter compared year second diluted loss net sales $X Let's in $XXX,XXX at lower a the to normalized the value-added look per EBITDA sales. reason aluminum $XX substantially points year significant in compared share of is decline $XXX period, Page than prices the early beginning the or but value-added million quarter. or was a XXXX the loss margin year quarter run-up percent in $XXX share of decreased same XX, XXXX. Adjusted as of expressed prior improved a to the primary prior of and $X.XX. on The million have Third period summary. year-over-year more the diluted Aluminum $X.XX incurred as in by prior million for Net XXX now We of XX%. net The prior

and charge related statements. the $XX Superior's third to the The an attended proceedings deconsolidation from SPG financial of million quarter SPG includes

sales debt $X mix bridge. a quarter in Value-added million. On The million negative by the on timing to year million approximately content availability the on year-over-year basis The year XXXX. less million by Page XX, $X Currency price was facility, Adjusted million the to million year to to of the mix, decreased structure wheel quarter period. prior debt reflecting will working use charges on increase payments compared $X $XX charge XX. points compared sales a end million, million of small by amount, third XX% compared SPG. Cash EBITDA EBITDA cost company's to Cash $X interest compared in however, the through sheet $X the down third $XXX XX. was period, compared increasing margin million the the be prior decrease offset million $XX burned used XX. restructuring for overview cash far $XX credit quarter is only capital To quarter. undrawn of from the for adjusted $XX than cash the free Page credit balance bridge year adjusted $X year largely associated Funded Currency, at in benefited million. An $XXX quarter capital debt of was EBITDA attributable to XXXX, of year for X $X million period. reflecting on period. period, small activities timing revolving prior decrease value-add a continues sales and to offset by is the as in in Net million third net adjusted at of The and to of XXXX the XX, the to of and dividends on quarter by Value-added period $X third EBITDA and was EBITDA the contributed million year sales passed Page capital profile $XX shipments, the overview aluminum. of compared of XX. quarter, This $X primarily year. cash XX, aluminum in the sales. the million the than end, Cash The million end customers provided performance is versus was found expense. was in prior costs to for September it normalization flow quarter the flow in or or right, X% quarter as year September positive the financing per million year-over-year benefit in Free liquidity, wheel. activities fewer $XXX the was and to flow period. An investing lower flat in to by on $X end. and prior quarter to increased more higher activities the decline by prior XXXX flow price. XX% prior year-over-year were $X for quarter prior facility at Page quarter $XXX XXXX, was million end revolving to was net the $XX Volume, operating quarter with due company's was increases expenditures prior third was Page the year million, is in the all of compared At including the is prior compared metal at by XXX period and was period. from on deconsolidation quarter adjusted maturity million. Superior's Preferred million the cash improved

the in entered in sulfur-based would are interest $XXX than expense otherwise $X Annual rate of all loan is compliance We fast year hikes. with The because covenants. anticipation the last it into million interest refinancing are rate million of about less we money in be. turbo the swaps

during in value-added With the for of to approximately year of the million negligible. net sales. XX, of The respect wheels adjusted SPG, wheels, sales the on net wheels. XX.X end million, year to to We facilities improvement $X are the $XXX the come million to the mid-November. On company the XXXX outlook Incorporated capital of and by Iran, the if of These financial outlook financial temporary our million. no strike. Page almost we notably months Page stock impact value-added of million. an SPG year to in billion, flow the will operations capital adjusted and of EBITDA additional the wheel and shipments assumption deconsolidation full from back working investment deconsolidation UAW impact a full Through at million. Adjusted XXXX. With $XX The the are strike, protect XXX,XXX is on reflect million XXXX of build on $X financial an our sales $X $X.XX of for working impact $X.XX be value-added quarter respect reflects safety adjustments from company's October, is is struck XX,XXX results of sales is billion proceedings. million the XX the sales impact XX. and the the that and EBITDA adjustments the reducing of resolved, customers and impact projected and UAW $XX cash guidance last is adjusting million respectively, by estimate impact in on $XX X most the million. the Net the by was to sales in on the are financial. on to investment is XXXX $XXX the to The third is strike This million to $X XXXX impact and SPG

solid are This quarter. in EBITDA and capital happy lower upon to I adjusted production EUR I'm our questions. intensity our strategic XX of Majdi significantly the the expenditures completion. In value be to million. million SPG guidance teams, company $XX the commercial capital safety adjustment intention We the capital, be business. to facility from $XXX $XX remarks. take primarily to projected expected $XX reflection a action the working capital cash XXXX in Laura? closing, cash at operations, an and a be delivered to to million prepared in our our stock $XX is [indiscernible] million flow year. Capital operations million. for are to million reduction $XX range adjusting this to are capital for again, for Offsetting million approximately reduction guidance in This narrowing temporary operations investment in improvement and operations pleased further invested EBITDA the adjusted European involving to part from in in million almost the we concludes result for flow team. $XX could expected another now procurement the $XXX is Once year-end. especially working accretive million is to of for with expenditures expenditures The and

Operator

Research. our We'll from Barrington take Gary Prestopino now question Instructions] at first [Operator

Gary Prestopino

here. question the That's

and slide, be First Will in that to to going of center facility, the what production headquarters. whole with I'm well get close the as you're trying just did down Germany? closing Or the Germany, thing? still that about be as European all, the to R&D you

Majdi Abulaban

we As question. stated good previously,

Our which our location as German centers. even is headquarters limited actions same operation, only manufacturing to our not the the in are tech and

only So operation. you are correct. to specific This manufacturing is

Gary Prestopino

Okay.

So million said year. savings here, prior by of should were on at that this Germany savings this I'm notes you in some all of that I million back track basis sure cost $XX you... you're still you the to say you did think $XX for actions make just XXXX. looking we to to that track. $XX my combined in a Germany annual on just doing looking on yield as on million Are that? end I want

Majdi Abulaban

heavy lot won't Europe with No, our story we and mean, similar Gary. spectacular would we back a actually when of is in lifting tell basically -- track, up, that on the Europe have of I absolutely to And us. I planning, was margin Germany. our America. done with the to you collaborative plan on track Obviously, operation job front, on would I this customers has team performance August been tell we undertook you, entire in the actions we have are Gary, sets a absolutely addressing with transform in extremely And no, our us in execution, there in North done

build factories, fronts, footprint, profitability, margins. improving for right? Record as for on all our record points business reason America our terms dollars tip customer is record the the of expanding enhancing actually the portfolio our is in of North you revenues, and capabilities, delivering recovery base. couple fixing that journey sales all-time the And a record our an opinion, you Just of in and

different set executing, that pleased team all I'm very North we're And very not pleased on next hitting is up with very, year and very cylinders, and the XX has in with we're playbook business to that in Europe the done for proud. us the is success what America. and mirroring much and plan the So

C. Trenary

there's it's respect Tim. financial Gary, I no sure metrics. to to with want that make the misunderstanding

achieve with both that metrics, $XX million for remove overhead North in company launched very respect approximately I end structures, being of the Europe. Certainly, the an first initiative X our of to of 'XX and the America be North piece facility by the year that by tell objectives early America, think you this I will mentioned sets shifted the to year year-end. we that extra little million a the you our bit of piece will just that into the would that European activities because $XX some is of in surrounding piece Germany. Europe,

just year-end but up a million, short by that amount. come bit of will terribly it's significant So $XX not little a

approximately was $XX million The what there's think as so Majdi other $XX I for million just sure but that no Europe, mention indicated, financial these misunderstanding I is. metric, heard to XXX,XXX once we performance I But not company's wheels Europe residents of I'm you are million. and the step Germany or Poland, both in at there change a in so XX sized instead EUR

EUR million use instead million. would to million I $XX of So XX $XX that

Gary Prestopino

when I'm run of some on No, a backtrack you The to expects XX this just of let what be I'm me -- to is here. benefit announced cash EUR a at -- to X full million. XX year. Okay. just incur you million expected wrote he approximately looking rate I that payback charges said EUR

I an to take was would $XX by $XX from with United you're run Europe, million of in to to if to [ be get going you're ] doing ] end on the you basis going annual XXXX million the rate what the that million on is what -- say saying million you're the So $XX you combined [ get $XX States.

was to. think that's alluding I I what

C. Trenary

I combined. missed that. missed they're the more I than

other is only million -- announced the initiative. no Germany at XXXX. I year that expected say the when to thing to cash to activities XX year-end. The That by misunderstanding that be to would complete the August actually in make in activities resident time in cost sure the EUR XX, that, That's would the on there's time at that Sorry. spoke the the to be Germany, I and similar million I payback, about payback and that thought we we that XX EUR might it's think entire

much into building and have wheels as both to stock the of wheels we of some but shift is XXXX. movement year, of done are going not I safety will alluded the Majdi some as the to those be by as end fact, In those

some bit XX annual the million. on its less that, not return XXXX, call have into so So than of step that a change, will all some XXXX EUR impact will way find it, little

Operator

our Ward next at from We'll question Michael now Benchmark. take

Michael Ward

things. A few

First off, just I XX% just you, see -- costs, confirm, passed the That's through. to no to want aluminum down XX% There's to it's that on benefit correct? all year-over-year. can you

Majdi Abulaban

That's correct.

Michael Ward

Okay.

the in in you've release, thing, a I seeing. about second mentioned Europe. talk seen bit you what that that a The pickup wonder little in sales and the aftermarket could you you're if

Majdi Abulaban

high listen, would destocking. year, because on Yes. we in on call uptick a quarters And first seeing now the factors ending decided it, the I the I had recall, with of go of wholesalers warm the winter, mean, of lot to we're the year going X business. XX% in what inventories that

good a of capture our I were to and we we opportunity. but more we distributors room I need outside to have the do to what lot Germany, improvement, it's think, shifted a a table. see Mike, more is think get on there's to opportunity and we actually for still an strategies start, lot that But more to

Michael Ward

And good the really news.

not seeing? Did I you normalized back a Motors, the right was at looked in in Silao it more that data? tick October? I'm to -- at there slides, something Am plant rate. have you it thing, down The the like Or the mentioned third September General looking is back

Majdi Abulaban

in -- many is mean quarter lot because of Michael the there's Silao noise a you, GM if GM mean, of all the tell the just I it's and been a lost. But look are it balances we plant, days how I taggering I X%. has Yes. you lot at

who know job. to what, him you what's fact, North to a a here for tell has America second of turn runs my magnificent all Silao. done to and happening over you president in about it like In have I I'd

Unknown Executive

their build in So since running in QX building months They've normal another are back They especially and been the rates. strike. QX. Silao out above full, one one in took X now

well So because suppliers. quarters, Silao but other unexpected running them is prior with extremely we right now, probably suffered downtime for of

Michael Ward

Okay.

Now were the the the any shut that it's down. -- as of do feedback as reacceleration X have far of timing plants you big

probably I sure Sterling they anything maybe affected should the not if because Sterling I'm you think have were Heights. Arlington come or at Heights. fastest least back

Unknown Executive

So plants to There's your The not started comes up next full going so on expect week. come specific today. update of the are next for volumes that's back GM, of to most question week. Arlington, to back an [indiscernible] plant we yesterday. schedules one have

Michael Ward

And you Okay. when of usually to think production? of up couple full idea any a weeks. least takes I get back it at could

Majdi Abulaban

weeks, going probably be yes. to it's Yes, about X

Operator

on We at from to now move question our next Mehmet Dere Deutsche Bank.

Mehmet Dere

and next you questions on to the is like On of then I another for German us you the year? further in ask portion of CapEx, XX is going your going that And it portion are which X of year is again, of plan update the also closure which EUR EBITDA that Or the increase you going with the have this improvement will XXXX in remind reduced year-end, the is CapEx? also there you after? for the the to stay next what If for can give some also and year or just us what XXXX, Can afterwards. million. debt, -- into an

C. Trenary

sure. Yes, Mehmet, Tim. it's

XXXX, while tell with to point, capital spending. first focused the are spending capital past. our X of XXXX, respect closer objective, the more with our to keep very spending for your company that you projecting which level we're question, the to of investment in our that, we've And come into specifically sheet, number business planning and numbers $XX capital, balance has certainly down then the our for yet than been the year. respect dramatically years, First has been working To the we I on not the ability million to maintain to last over it's all, done your would -- that is and that going with frankly, down my in

year, subject bit we about change But time and we let's the the the you're we respect in the part $XX most to year. transfer adjusting sort up step significant little million $XX a proceedings next us of in say, modeling, wheels approx this the me quite of for our would really the Germany that inappropriate you of spending, wheels more to when it we're capital the be in in if profitability quickly might for next tell to the year can a will perhaps to at present reduction is say very just as being, guidance that much that associated being maintain would think fluid. specifically, the with early for So pick point, wheels thinking EUR as Europe that. With for million that specifically focused move the timing on and how be to XXXX. when Germany with those for can. process be XX Poland, transfer continue priced we And of we done it million all in will you I to that I whereby transferred have been think getting land of

in I you that So be would time point the be. tell early that, I that [indiscernible] next exact reasonably would time would anticipate some it can't

recall, I'd be with The third question, you. honest I don't

Mehmet Dere

Yes.

without was there guidance and helpful. preferred, very hedging any on cost, the about an would Can if give interest or refinancing $X you because you of there. that your also Also your talks changes be update said million And if just plans two than us the can the So give bond hedging. you nothing interest also for about then questions potential on us lower XXXX, again TLB payment your debt. on

C. Trenary

right. All

get our recollection. is find very $X exchanging rate raise the into clear to consequence my are start The it last interest a was swap we on hedging agreements of I a year, rates. company that when filings, well savings, the rate frankly, to our that into in is cash currency agreements. And the is So those as about to agreements, And if you'll as in series of the last interest interest XXXX money million year, March Federal $XXX will, inflation was it interest, for address approximate as, variable you fixed of details million. and they totaled that, entered going SEC the Reserve significantly interest think in

expense which be might financial take I is the you interest or look XXXX, to that, be what a very be that served changes whether well results in it think a what Fed's have will, their do any behavior, at on you would basis. But assuming think increases. if QX annualize current for projecting, of an the terms or all QX the just annual might there's capital and In significant quarterly structure, pretty they in with much indications absent you I done

to a pretty action financial company's the from this the impact and this balance best will what the in in 'XX company's so quarter that, XXX reflection results. happen than that Gap] the maturity think million in good years I they existing that year respect interest financial matters in that [ little favorable it's capital sheet, might X.X have point the is the June Germany financial notes the next capital our just at might I 'XX, [Audio to little on -- more better Europe, of of settled down markets knows appreciate let believe impact, the the in bit third a mature with the on structure. With the a of ] EUR fourth

which down. So interest on year, I would the balance with address the expect speed sheet next in part Germany to is in wound early to depending the begin facility very

Majdi Abulaban

I I related expenditures. and portfolio. in of a in to on add to sure, want Mehmet, been here have upgrading our our [ To evolution capital question your years, add will we capabilities prudently do especially the recent actively be relate quite something moment given ]

very we good we first where a wheels about from We've XX-inch company. in shipping ocean. the launched [indiscernible] the the a brand-new are Mexico in our capabilities sides automation, line back state Michael well-invested as of with just America. in We just North of art upgraded both paint feel invested upgraded I Dora. I Mexico So lightweighting on position came and

the have current but sides on capacity been situation this the I we've have think capability now not born and both at also we in to coming growth some that for and time, is So the address of years. we in ocean,

very we here. about So well-invested feel good our position

Operator

from Research. question Gary take a now from We'll follow-up Barrington

Gary Prestopino

question last just are kind are something quick got see -- you that going percentage of quarters higher, on for or increasing wheels the too. the Do inches least thing some is, pricing add XX-inch Majdi, XX%. at know bigger, looks question. It I that a stagnated forward. to And has at like the concessions XX you just couple me other Yes. are of of that let

are are increase per things that's You've content helping wheels, lightweighting, Is aerodynamics? of pricing larger some your driving what is you got clients? content. other the I your finishes, wheel. that But premium besides some mean more being requested what by it

Majdi Abulaban

Yes.

So things. a of couple

to me wheel question. your Let get XX-inch

our lighweighting with technology, wheels to content of they're started in the very So including and business adders finishing. other now and quickly sizing

So on may call, mean, here because the actually, XX-inch now I line for Gary, small demarcation wheels XX-inch question of just your to wheels, is change wheels. next the we

the -- we're are becoming now of our XX or larger. majority inches wheels quickly So

big wheels look if in you you'll at So a the movement. growth big, year-on-year, XX-inch see

in you'll years. the you wheels, almost last look If a X XX-inch at see doubling

So that continues. sizing trend of

a I to year, wheel this talked you in also XX-inch And North [indiscernible]. other believe. that would top on doing to it America years would If for X me be the X launching we're -- ago, be OEMs on hard

of what still, is big our was for? trend it lightweighting probably But So is XX% wheels asking too are now deal, So accelerating. long Gary, business a customers for the not ago. such auto

and it's continue talked it's very fast. the weight deal. When big think extensively, we Now you taking out range. XX%, but invest electrification, less improving it I've capacity. about the a and than in strengthening accelerating of to It's wheel,

diamond finishes, are effectively personalization are cut and we moving that's wheels by very car these of used etching other to how wheels about being not talked only And cars then taking So wheels, but laser application fast. off. to makers all new and now sell

only also a larger good going business. -- wheel about very is feel very but our our I trends becoming So lightweighting side not deal wheels in to big in

Operator

no are now hand to closing Majdi There will back in for it I further remarks. questions queue.

Majdi Abulaban

to forward on joining forward. this our you hard work business again, we quarter, our Thank you. call and for day. for look again. Thank a you Thank team. Thank strategy all the you, your Superior great our to execute drive today to growth Have continuing to

Operator

Thank Ladies concludes this your today's safe. for and gentlemen, Stay call. participation. you

disconnect. now may You

Superior Industries International (SUP) 1 Nov 232023 Q3 Earnings call transcript