CHICAGO Superior Industries International Inc.s profits narrowed in the third quarter as a lower aluminum sales pass-through and a tax change dented results.
The Van Nuys, Calif.-based aluminum wheels producer reported net income of $5.2 million in the three months ended Sept. 29, down 65.7 percent from $15.1 million in the year-ago quarter on net sales that slipped 1.2 percent to $191.6 million. For the first nine months of the year, Superior posted net income of $16.4 million, down 41.8 percent from $28.2 million in the same period last year as sales dipped 2.4 percent to $597.1 million in the same comparison.
But Superior stressed that investments at its manufacturing facilities, especially in the United States, have lowered operating costs and boosted productivity, chief executive officer and president Steven J. Borick said.
In addition, Superior continues to make progress on the construction of a new manufacturing plant in Mexico (amm.com, May 7), Borick said. "The project is well under way, with approximately 75 percent of the total commitments made for the facility and production equipment," he added.
The drop in third-quarter net income was due in part to an unfavorable tax "swing" of $7.7 million, Superior said. The company did not provide figures in its earnings release for the amount of the reduction in its aluminum pass-through.
Shipments in the quarter were unchanged from last year, but fell 4.3 percent to 8.9 million units for the first nine months of the year compared with the same period last year, Superior said. That drop in volume was partially offset by a 1-percent increase in average selling prices due to a better sales mix, the company said.