Superior Industries Announces Strategic Action In German Production Facility

(RTTNews) - Superior Industries International Inc. (SUP) announced that its subsidiary, Superior Industries Production Germany GmbH or "SPG", has entered into Protective Shield Proceedings, a court-administered reorganization.

The proceedings are strictly limited to Superior Industries Production Germany and its German-based manufacturing facility, operating at the production site in Werdohl, Germany, the company said in a statement.

The company noted that its operations in the U.S., Mexico and Poland are not impacted, and its other German operations and aftermarket business are not part of these proceedings.

The company expects to recognize a non-cash charge of about $82 million in the third quarter of 2023, representing the excess of the carrying value of the net assets over the estimated preliminary fair value of its interest in SPG.

Superior expects to incur cash charges associated with those proceedings of 15 million euros to 18 million euros and a benefit to adjusted EBITDA, which is expected to be fully realized in 2024 on a run rate basis, that reflects a payback of approximately one year.

Superior Industries re-affirmed its full year 2023 outlook. It still expects annual net sales to be in the range of $1.55 billion - $1.63 billion.