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Superior Industries (SUP) Posts Loss in Q1, Beats on Sales

Published 05/13/2020, 07:33 AM
Updated 07/09/2023, 06:31 AM
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Superior Industries International (NYSE:SUP), Inc. SUP reported an adjusted first-quarter 2020 loss of 25 cents, narrower than the Zacks Consensus Estimate of a loss of 32 cents. The loss per share, however, widened 13.6%, year on year. Substantial decline in sales volumes in Europe and North America resulted in the dismal performance.

The aluminum-wheel manufacturer reported revenues of $301 million, beating the Zacks Consensus Estimate of $295 million. The top line, however, came in lower than the year-ago figure of $358 million. This downside resulted mainly from lower volumes and lower aluminum prices.

Superior Industries suspended the 2020 guidance as it expects the coronavirus pandemic’s impact to strain its operations in the days to come.

Superior Industries International Inc Price, Consensus and EPS Surprise

Quarter Details

During the first quarter, the company’s wheel unit shipments decreased 15% year over year to 4.3 million. This downside primarily stemmed from production declines amid the coronavirus crisis. Shipments in Europe came in at 2.09 million, down from the 2.41 million recorded in first-quarter 2019. In North America, the shipments were 2.22 million, lower than the year-ago figure of 2.62 million.

Sales in the European market came in at $145.5 million, lower than the $172.6 million recorded in the year-ago quarter. Sales in the North American market totaled $155.6 million, down from the prior-year period’s $185.1 million.

The company reported an operating loss of $183 million as against the operating profit of $19 million recorded in the year-ago quarter. Selling, general and administrative expenses in the quarter were $13 million compared with the year-ago quarter’s $14 million.

Net cash provided by operating activities summed $31 million in the March-end quarter, up from the year-ago quarter’s $29 million. Capital expenditure amounted to $13.9 million.

During the quarter, Superior Industries paid dividends of $3 million and purchased $4 million of shares from minority equity holders of Superior Industries Europe AG.

As of Mar 31, 2020, the company had total liquidity of $296 million compared with the $243 million witnessed in the prior-year period. Net debt was $542 million as of Mar 31, 2020, down from the prior-year quarter’s $626 million.

Zacks Rank & Stocks to Consider

Superior Industries currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Veoneer (NYSE:VNE), Inc. VNE, Unique Fabricating (NYSE:UFAB), Inc. UFAB and Modine (NYSE:MOD) Manufacturing Company MOD, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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