Superior Industries Q1 Profit Falls; Reaffirms FY19 Outlook - Quick Facts

(RTTNews) - Superior Industries International, Inc. (SUP), a supplier of aluminium wheels for OEMs and the European aftermarket, reported a net income for the first quarter that fell more than 80 percent from last year. Looking ahead, the company reaffirmed its revenue outlook for fiscal 2019.

Superior reported net income of $2.0 million for the first quarter, down sharply from $10.3 million in the year-ago period.

Loss per share for the quarter was $0.24, including acquisition-related and other expenses of $0.02 per diluted share. This compared to earnings of $0.07 per share in the prior-year period.

Net sales for the quarter declined to $357.7 million from $386.4 million in the prior-year period. The reduction was driven by reduced volumes, a weaker Euro, and lower aluminum prices, partially offset by improved product mix comprised of larger diameter wheels and premium finishes in both regions.

On average, analysts polled by Thomson Reuters expected the company to report loss of $0.16 per share for the quarter on revenues of $363.57 million. Analysts' estimates typically exclude special items.

Timothy McQuay, Executive Chairman of Superior, said, "During the first quarter of 2019, we faced lower shipment volumes compared to last year, primarily in our North American operations, which was driven by reduced take rates on several platforms that we supply as well as softer industry production levels at our key customers. Our European business also continued to be impacted by softer industry production volumes within our customer base."

For fiscal 2019, Superior reaffirmed its outlook for net sales in a range of $1.42 billion to $1.47 billion, driven by unit shipments of 19.85 million to 20.30 million. The Street expects the company to report revenues of $1.44 billion for the year.