Industries International Inc.s profits dipped in the
first quarter of 2013 compared with the year-ago period as
labor and supply costs affected results.
Costs related to new wheel
development were also higher than they were last year, the Van
Nuys, Calif.-based aluminum wheel maker said in commentary
released with earnings data May 3.
Superior reported net income of
approximately $4.9 million in the first quarter of 2013, down
26.9 percent compared with net income of roughly $6.7 million
in the year-ago quarter, despite sales increasing nearly 2
percent to about $206.4 million.
The company is struggling to
keep up with demand from the automotive market, chairman, chief
executive officer and president Steven J. Borick said.
"Ongoing strength in the auto
market, combined with Superiors capacity limitations,
continue to create operating challenges, especially at our
largest manufacturing facility in the U.S.," Borick said in a
The company is aiming to improve
its existing operations, speed capital investments and boost
capacity with a new plant in Chihuahua, Mexico, Borick said.
"We are confident these investments will enable us to pursue
growth opportunities afforded by the strengthening automotive
sector," he said.
In April, Superior announced
plans to build the new aluminum wheel manufacturing plant in
Chihuahua. The company said it planned to invest between $125
million and $135 million and produce 2 million to 2.5 million
wheels per year (
amm.com, April 16).
Superior currently produces 12.5
million wheels per year, and the new plant is expected to
initially boost the companys capacity by 15 to 20
percent, Borick said.
Construction on the Mexican
facility is expected to be completed in mid-2015, Superior said