Superior Industries International Inc (SUP) Reports Q3 2023 Financial Results
Net Sales for Q3 2023 decreased by 20% YoY to $323M.
Adjusted EBITDA margin for Q3 2023 increased by 160 bps YoY to 22%.
Net loss of $86M includes a charge to operations of $80M.
Content per Wheel increased by 6% YoY to $49.71.
Superior Industries International Inc (NYSE:SUP) released its Q3 2023 earnings report on November 1, 2023. The company reported a decrease in net sales by 20% YoY to $323M, while the adjusted EBITDA margin increased by 160 bps YoY to 22%. The net loss for the quarter was $86M, which includes a charge to operations of $80M. Despite the decrease in net sales, the company saw an increase in Content per Wheel by 6% YoY to $49.71.
Financial Performance
Superior Industries reported a net loss of $86M for Q3 2023, which includes a charge to operations of $80M. The company's net sales decreased by 20% YoY to $323M, while the adjusted EBITDA margin increased by 160 bps YoY to 22%. Despite the decrease in net sales, the company saw an increase in Content per Wheel by 6% YoY to $49.71.
Company's Outlook
Superior Industries is reducing its full-year Unit Shipments and Net Sales outlook, and narrowing the Adjusted EBITDA range to reflect the deconsolidation of SPGs financial results effective August 31, 2023, and an estimate for the impact of the UAW strike on fourth-quarter results. The company is also reducing its Cash Flow from Operations outlook to reflect a temporary investment in working capital, primarily safety stock, to protect its customers during the SPG proceedings. Finally, Superior is reducing its outlook for capital expenditures.
Key Financial Tables
Superior Industries reported net sales of $323.1M for Q3 2023, compared to $405.7M for Q3 2022. The company's gross profit for Q3 2023 was $25.3M, compared to $28.4M for Q3 2022. The company's net loss for Q3 2023 was $86.3M, compared to a net loss of $0.4M for Q3 2022.
Management Commentary
President and Chief Executive Officer of Superior, Majdi Abulaban, commented on the results, stating
Our results this quarter underscore the continued execution of our strategy to deliver a market differentiated portfolio while enhancing our manufacturing footprint. We grew content per wheel for an eighteenth consecutive quarter, a testament to the expertise of our commercial, manufacturing, and engineering teams as well as the competitive positioning of our products."
Abulaban also expressed concern about the potential impact of the UAW strike on the company's fourth quarter, but remained confident in the company's ability to continue capitalizing on the demand for premium wheels.
Explore the complete 8-K earnings release (here) from Superior Industries International Inc for further details.
This article first appeared on GuruFocus.
