Superior Narrows Third-Quarter Loss

By Lana Flowers

Posted: November 7, 2009 at 3:50 a.m.

• Print item
• E-mail
• Share
• Tweet

SPRINGDALE — Wheelmaker Superior Industries lost less money in the third quarter compared with last year, after two of its largest customers, Chrysler and General Motors, emerged from bankruptcy.

Superior on Friday released earnings for the third quarter that ended Sept. 30.

Superior's only U.S. plants are in Fayetteville, with about 380 employees, and Rogers, with about 250 employees. Superior makes wheels for 17 automakers, including Ford, General Motors, Chrysler, Audi, BMW, Jaguar and Land Rover, Mercedes Benz, Nissan, Toyota and Volkswagen.

Superior also has plants in Chihuahua, Mexico, and in Hungary. Its corporate headquarters is in Van Nuys, Calif.

Superior reported $111.3 million in sales for the third quarter, a 31.8 percent decline from the $163.35 million in sales for the same quarter last year.

Three analysts surveyed by Thomson Reuters expected revenue of $106.7 million.

Third-quarter sales were an improvement when compared with $80.9 million in sales in the second quarter, said Steven Borick, Superior chairman, president and chief executive officer.

"We are encouraged by the production volume increases that materialized as the third quarter progressed. Based on orders received thus far, we believe that our sales will show moderate improvement during the fourth quarter," Borick said in an earnings release.

Automakers emerging from bankruptcy and the government's Cash for Clunkers stimulus program helped Superior's third-quarter sales, Borick said.

Superior in August anticipated the sales uptick and said it would recall 80 hourly workers to Fayetteville and Rogers, after laying off 107 Fayetteville employees in May.

Superior reported $273.8 million in sales for the nine months ended Sept. 30, a 55 percent decline from the $602.9 million in sales for the same nine months the prior year.

Superior reported a third quarter loss of $12.74 million, or 10.31 percent less than the $14.2 million loss in the third quarter last year.

Stockholders lost 48 cents per share in the third quarter, 5 cents less than the 53 cents per share lost in the third quarter last year. Analysts expected a loss of 14 cents per share.

The economy still is pressuring factories, as the U.S. manufacturing sector lost 61,000 jobs in October, according to the Alliance for American Manufacturing. The alliance is a nonpartisan, nonprofit partnership among leading manufacturers and the United Steelworkers.

However, the manufacturing sector's credit index was at 51.2 in October, said Chris Kuehl, the National Association of Credit Management's economic analyst.

The Columbia, Md.-based organization supports 19,000 business credit and financial professionals worldwide with services, tools and information. A credit index of less than 50 means economic contraction and anything above 50 indicates expansion.

October's manufacturing credit activity "is a pretty sharp gain given the slow development over the last several months. While it took from July to September to move 1.3 points, it only took one month for the sector to move 1.6 points to reach October's numbers. This is rapid expansion by any measure," Kuehl said.

That's a sign manufacturers are buying raw materials, a predecessor to higher production, Kuehl said.

"There remains a considerable way to go before the entire sector is nearly healthy, but the trends are moving in the right direction," he said.

Shares of Superior (NYSE: SUP) closed Friday at $14.03, up 24 cents. The share price ranged from a $17 high to a low of $8.19 in the past 52 weeks.

Comments

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Please read our comment policy.

Use the comment form below to begin a discussion about this content.