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Superior Industries International Inc. Reports Operating Results (10-Q)

August 03, 2012 | About:
10qk

10qk

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Superior Industries International Inc. (SUP) filed Quarterly Report for the period ended 2012-06-24.

Superior Industries International Inc. has a market cap of $468.1 million; its shares were traded at around $16.91 with a P/E ratio of 12.4 and P/S ratio of 0.6. The dividend yield of Superior Industries International Inc. stocks is 3.7%.

Highlight of Business Operations:

million in the comparable period a year ago. Wheel unit shipments increased to 3.3 million from 2.9 million a year ago. Gross profit in the second quarter of 2012 was $15.7 million, or 7 percent of net sales, compared to $19.5 million, or 9 percent of net sales, in the comparable period a year ago. Net income for the second quarter of 2012 was $6.4 million, or $0.23 per diluted share, and included income tax expense of $2.0 million, compared to net income in the second quarter of 2011 of $14.7 million, or $0.53 per diluted share, which included an income tax benefit of $1.1 million.

Selling, general and administrative expenses for the second quarter of 2012 increased $1.1 million to $7.5 million, or 3 percent of net sales, from $6.4 million, or 3 percent of net sales, for the comparable period in 2011. The 2012 period included increases totaling $1.1 million in legal, audit and consulting expenses. For the first two quarters of 2012, selling, general and administrative expenses were $14.4 million, or 3 percent of net sales, compared to $13.0 million, or 3 percent of net sales, for the comparable period in 2011. The principal increases in the year-to-date period are the same as just noted for the second quarter comparison.

Consolidated income from operations decreased $4.7 million in the second quarter of 2012 to $8.2 million, or 4 percent of net sales, from $12.9 million, or 6 percent of net sales, in the comparable period in 2011. Income from our Mexican operations increased $1.2 million, while income from our U.S. operations decreased $3.1 million, when comparing the second quarter of 2012 to the comparable period in 2011. Operating income in the second quarter of 2012 has been unfavorably impacted by changes in product mix and foreign exchange rates, as compared to the second quarter last year. Additionally, corporate costs incurred during the second quarter of 2012 were $2.7 million higher than the comparable period in 2011 primarily due to $1.1 million higher legal, audit and consulting expenses and $1.1 million of workers' compensation costs.

For the first half of 2012, consolidated income from operations decreased $4.6 million to income of $18.4 million, or 4 percent of net sales, from $23.0 million or 6 percent of net sales, in 2011. Income from our U.S. operations decreased $7.1 million, while income from our Mexico operations increased $4.9 million when comparing 2012 to 2011. Operating income in the first half of 2012 has been unfavorably impacted by changes in product mix and foreign exchange rates, as compared to the first half last year. Additionally, corporate costs incurred during the first half of 2012 were $2.4 million higher than the comparable period in 2011 primarily due to $1.1 million higher legal, audit and consulting expenses and $1.2 million of workers' compensation costs. Included below are the major items that impacted income from operations for our U.S. and Mexico operations during the second quarter and year-to-date period of 2012.

Operating income from our U.S. operations in the second quarter of 2012 decreased by $3.1 million compared to the second quarter last year. Our U.S. operations during both periods consisted of two wheel plants located in Arkansas. Although income from our U.S operations in the second quarter of 2012 reflects a 23 percent increase in unit shipments, this improvement was more than offset by a negative change in product mix and higher operating costs which caused gross margin to decline from 5 percent of sales in 2011 to 1 percent in the second quarter of 2012. Consistent high capacity utilization at our plants to meet continued high volume customer demand has strained personnel and factory resources. The decline in operating income reflects an increase in plant labor and fringe benefit costs of $3.1 million caused by higher headcount and increases in overtime costs and contract labor, in addition to a $3.3 million increase in plant repair, maintenance and supply costs in the second quarter of 2012, compared to the second quarter last year.

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