p strong Superior Industries International Inc Reports Second Quarter 2024 Financial Results strong
Intellectia.AI Updated: 1970-01-01
Superior Industries International, Inc. Reports Second Quarter 2024 Financial Results
Superior Industries International, Inc. (NYSE:SUP), a leading aluminum wheel supplier, announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics:
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $319M | $373M | -14.5% |
| Net Loss | -$11M | -$0.1M | N/A |
| Loss per Diluted Share | -$0.75 | -$0.35 | N/A |
| Adjusted EBITDA | $40M | $52M | -23.1% |
| Adjusted EBITDA Margin | 22% | 26% | -4% |
| Cash Flow Used by Operating Activities | -$8M | -$28M | N/A |
| Unlevered Free Cash Flow | $2M | -$16M | N/A |
Interpretation: Superior Industries reported a net sales decrease of approximately 14.5% compared to the previous year, largely driven by lower aluminum costs and the deconsolidation of a subsidiary. Despite the net loss increase, the company achieved sequential margin expansion. Adjusted EBITDA decreased by 23.1%, indicating challenges in maintaining profitability due to inflationary pressures and restructuring costs. Improved cash flow suggests effective working capital management.
Revenue Performance by Major Segments:
| Segment | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $319M | $373M |
| Value-Added Sales | $180M | $180M |
Interpretation: The company sustained its value-added sales year-over-year despite a significant decrease in net sales, primarily attributed to adverse external factors such as foreign exchange rates and subsidiary deconsolidation. This stability reflects resilience in maintaining core operational efficiency.
Comments from Company's Officers:
Majdi Abulaban, President and CEO of Superior Industries, stated that despite lower customer production, the company saw sequential margin improvements. He emphasized the European operations' transformation, expecting it to considerably enhance profitability. Abulaban also hinted at a reduction in full-year Adjusted EBITDA expectations due to lower production forecasts from key OEM customers.
Forward Guidance:
Superior has adjusted its outlook for the remainder of 2024. Net sales expectations were lowered due to reductions in aluminum costs and projected OEM production volumes. Adjusted EBITDA and value-added sales predictions were also lowered based on anticipated lower production volumes, whereas unlevered free cash flow estimates remain unchanged.
Stock Price Movement:
Following the earnings release, Superior Industries' stock price experienced a slight decline, decreasing by approximately 0.18%.
Superior's ongoing European transformation initiatives and working capital improvements position it for potential future profitability, despite current operational and market challenges.
The report has been organized into a clearer format, and unnecessary columns have been removed.