Superior Industries International Inc (SUP) Reports Q1 2024 Earnings: A Detailed Look at the ...

GuruFocus Research

2 May 2024 at 9:16 am·3-min read

Net Loss: Reported a net loss of $33 million, significantly above the estimated net loss of $24 million.
Earnings Per Share (EPS): Recorded a loss per diluted share of $1.52, falling short of the estimated EPS of -$0.85.
Revenue: Achieved revenue of $316 million, below the estimated revenue of $348.34 million.
Adjusted EBITDA: Posted $31 million in Adjusted EBITDA, reflecting operational challenges and restructuring impacts.
Cash Flow: Generated $4 million from operating activities, indicating a significant decrease from the previous year's $39 million.
Free Cash Flow: Reported a negative free cash flow of $8 million, highlighting financial pressures from lower operational cash flow and ongoing capital expenditures.
Debt Position: Ended the quarter with net debt of $439 million, showing an increase from the previous year's $421 million.

Warning! GuruFocus has detected 6 Warning Signs with SUP.

On May 2, 2024, Superior Industries International Inc (NYSE:SUP), a prominent player in the aluminum wheel manufacturing sector, disclosed its financial results for the first quarter ended March 31, 2024. The company announced these results through its 8-K filing. The results reveal a challenging quarter with net sales of $316 million, which is significantly lower than the analyst's expectations of $348.34 million. The reported net loss of $33 million also deepened beyond the anticipated $24 million.

Superior Industries International Inc (SUP) Reports Q1 2024 Earnings: A Detailed Look at the Financials

Company Overview

Superior Industries International Inc is engaged in the design and manufacture of aluminum wheels for major OEMs across North America and Europe. The company collaborates with automotive giants like BMW, Ford, GM, and Toyota, among others. It also caters to the European aftermarket under well-known brands such as ATS, RIAL, ALUTEC, and ANZIO.

Financial Performance and Challenges

The first quarter of 2024 saw a decrease in net sales to $316 million from $381 million in the same period last year. This decline was primarily attributed to reduced aluminum pass-through, lower recovery of cost inflation from customers, and decreased unit shipments. The net loss widened to $33 million from $4 million, exacerbated by restructuring costs linked to the strategic transformation of its European operations. The company's shift from its high-cost German manufacturing facility to a more cost-effective location in Poland is a part of this strategic realignment aimed at enhancing profitability and competitive positioning.

Financial Position and Outlook

As of March 31, 2024, Superior reported funded debt of $630 million and net debt of $439 million. Looking ahead, the company forecasts full-year 2024 net sales to range between $1.38 billion and $1.48 billion, with adjusted EBITDA expected to be between $155 million and $175 million. These projections reflect the anticipated benefits from the ongoing strategic transformations and operational optimizations.

Analysis of Key Financial Metrics

The company's gross profit for Q1 2024 stood at $21 million, down from $35 million in the previous year, primarily due to the restructuring costs. SG&A expenses increased slightly to $21 million from $19 million, reflecting the financial strain of the European business transformation. The adjusted EBITDA of $31 million represents a decrease from $46 million in the prior year, indicating the impact of lower sales and operational challenges.

The detailed financial statements highlight the complexities and challenges faced by Superior as it navigates through significant transformations in its operational structure. The strategic decisions, particularly around restructuring and cost management, are critical as the company aims to return to profitability and sustainable growth.

Conclusion

Superior Industries International Inc's first quarter of 2024 reflects a period of significant challenge and transformation. The financial outcomes, notably the deviation from analyst expectations in terms of both revenue and net income, underscore the impacts of strategic shifts and market conditions. Investors and stakeholders will likely watch closely as the company progresses with its strategic initiatives aimed at improving its financial health and market position in the competitive automotive supply industry.

For detailed insights and further information, you can access the full earnings report and listen to the earnings call webcast through the links provided in the company's official announcement.

Explore the complete 8-K earnings release (here) from Superior Industries International Inc for further details.

This article first appeared on GuruFocus.

GOBankingRates
Cutting Out These 9 Expenses Will Save Retirees Over $29,000 a Year
Most retirees live on a fixed income, so they look for ways to cut down on expenses and save money. This isn't always easy to do, especially if you already feel like you're living with the least...
Australian Associated Press
Rationale behind RBA's last cash rate call on show
The minutes from the last Reserve Bank meeting will outline the thinking behind keeping rates on hold and how seriously the case to hike was considered.
Bloomberg
Gold Trims Gains as Traders Book Profit After Fresh Record
(Bloomberg) -- Gold trimmed gains as traders booked profits after prices surged to a record on increasing optimism over the Federal Reserve’s monetary policy and rising geopolitical tensions in the Middle East.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteHims Debuts $199 Weight-Loss Shots at 85% Discount to WegovySpeedier Wall Street Trades Are Putting Global Finance On EdgeJamie Dimon Says Succession at JPMorgan Is ‘Well on the Way’One of the Last Big Bea
Bloomberg
Red Lobster Chain Goes Bankrupt After Unlimited Shrimp Deal
(Bloomberg) -- Seafood restaurant chain Red Lobster filed for bankruptcy, succumbing to onerous leases, high labor costs and a disastrous unlimited shrimp promotion. Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteHims Debuts $199 Weight-Loss Shots at 85% Discount to WegovySpeedier Wall Street Trades Are Putting Global Finance On EdgeJamie Dimon Says Succession at JPMorgan Is ‘Well on the Way’One of the Last Big Bears on Wall Street Turns Bullish on US Stocks
GOBankingRates
7 Things To Know If You Withdraw More Than $10,000 From Your Checking Account
If you've taken the advice to save as much money as in an emergency fund or other form of savings, you should feel entitled to take out money when needed. That's what it's there for, after all. Learn...
Bloomberg
Copper Hits Record Above $11,000 on Bets That Shortage Looms
(Bloomberg) -- Copper surged to its highest-ever level, extending a months-long rally driven by financial investors who’ve piled into the market in anticipation of deepening supply shortages.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteHims Debuts $199 Weight-Loss Shots at 85% Discount to WegovySpeedier Wall Street Trades Are Putting Global Finance On EdgeJamie Dimon Says Succession at JPMorgan Is ‘Well on the Way’One of the Last Big Bears on Wall Street T
Investing.com
Palo Alto Networks stock drops 9% as billings outlook disappoints
Shares of Palo Alto Networks (NASDAQ:PANW) tumbled 9% as the company's soft billings outlook overshadowed its fiscal third-quarter earnings beat.
Yahoo Finance
Under Armour is collapsing — And Kevin Plank has to take the blame
The Under Armour meltdown continues.
Reuters
Anglo shareholder LGIM supports break-up plan as BHP circles
Anglo American shareholder Legal & General Investment Management (LGIM) supports the break-up plan announced by the company last week, it said on Monday, as the deadline approaches for BHP Group to log a formal takeover offer. The radical plan to divest Anglo's less profitable coal, nickel, diamond and platinum businesses followed its rejection of two all-share takeover approaches from BHP, the world's biggest listed mining group, which had proposed a $43 billion deal on the condition that Anglo first spins off its South African operations. "The plan outlined by Anglo American is a radical but attractive strategy to create value for long-term investors," said Nick Stansbury, head of climate solutions at LGIM.
GOBankingRates
8 Ways Middle-Class People Become Poor in Retirement
After working for most of your adult life, the last thing you want to do is stress about your finances and paying hefty bills in your golden years. You want to enjoy your retirement after committing...
Bloomberg
Speedier Wall Street trades are putting global finance on edge
The time for completing a stock transaction is being halved to a single day — and that comes with risks.
Reuters
Morning Bid: Metals zoom as investors wait on rates
Copper and gold made record highs in Asia trade on Monday and silver surged over $30. Gold's 18% rally over the year to date has been attributed, variously, to Chinese buying, global political tension and expectations that U.S. rates will start to fall soon, seen as a boon for a metal that does not pay a yield at all.
Yahoo Finance
Stock market today: Nasdaq clinches record close, JPMorgan drags down Dow
Investors are bracing for Fed minutes and Nvidia earnings in coming days that could test the recent rally in stocks.
Simply Wall St.
ASX Growth Companies With Insider Ownership As High As 18%
Today, the ASX200 experienced a decline of 0.85%, with most sectors losing ground except for materials. Notably, IT stocks faced significant pressure, dropping over 3%, and the Health Care sector also saw a decrease of 2%. In such fluctuating market conditions, companies with high insider ownership can be particularly compelling as these insiders may have a deeper commitment to the company's success and resilience in challenging times.
GOBankingRates
4 Expenses Experts Say You Can Easily Cut in Half
If your budget is stretched to its limits, you can get some relief by reducing expenses. But where should you start? Mike Sullivan, personal financial consultant and spokesperson for Take Charge...
Yahoo Finance AU
Big banks slammed for ‘abandoning’ mortgage customers
More mortgage holders are experiencing hardship as interest rates rise and cost-of-living pressures bite. And banks aren't doing enough to help them.
Reuters
Oil eases on worries about US inflation, interest rates
NEW YORK (Reuters) -Oil prices eased less than 1% on Monday as U.S. Federal Reserve officials said they were awaiting more signs that inflation was declining before the central bank starts cutting interest rates. Two top Fed officials said they're not yet ready to say inflation trends are again moving sustainably back to the central bank's 2% target, weighing in after data last week showed a welcome easing in consumer price pressures in April. Lower interest rates would reduce borrowing costs for consumers and businesses, which could boost economic growth and demand for oil.
GOBankingRates
TikTok’s Humphrey Yang Claims These 5 Investments Will Keep You Poor
Everyone should be investing a good portion of their income. It's one of the key ways to build wealth (if you need an example, just look at multibillionaire Warren Buffett, who built much of his net...
Bloomberg
Private Equity’s Massive UK Debt Binge Sparks Warnings of Danger
(Bloomberg) -- For an idea of what private equity ownership can mean for ordinary people, UK grocers are a good place to start. Both Wm Morrison Supermarkets Ltd. and Asda have been laboring lately under giant debt burdens put on their shoulders by the financiers who bought them in 2021.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeHims Debuts $199 Weight-Loss Shots at 85% Discount to WegovyJamie
Simply Wall St.
Exploring Three Japanese Growth Companies With High Insider Ownership On The Tokyo Stock Exchange
Despite a backdrop of economic contraction and modestly rising bond yields, Japanese equities showed resilience last week, with the Nikkei 225 Index gaining 1.5%. In this context, exploring growth companies with high insider ownership on the Tokyo Stock Exchange could offer intriguing insights into firms that are potentially well-positioned to navigate Japan's complex market dynamics.

ALL ORDS

ASX 200

AUD/USD

OIL

GOLD

Bitcoin AUD

CMC Crypto 200

AUD/EUR

AUD/NZD

NZX 50

NASDAQ

FTSE

Dow Jones

DAX

Hang Seng

NIKKEI 225

Company Overview

Financial Performance and Challenges

Financial Position and Outlook

Analysis of Key Financial Metrics

Conclusion

Latest stories