VAN NUYS, Calif. (March 1, 2013) — Alloy wheel supplier Superior Industries International Inc. reported sharp drops in net income for the quarter and year ended Dec. 31 and disclosed plans to build a $125 million plant in Mexico to help boost its North American business.
Net income for the quarter plunged 93.2 percent to $2.7 million, contributing to a 54-percent dip in fiscal 2012 earnings to $30.9 million. The 2011 results included a tax gain of $28.2 million, Superior said.
Sales fell 2.8 percent to $210 million in the quarter and slightly for the year to $821.5 million despite higher unit sales volumes.
Regarding the new plant, CEO Steven Borick said the company is planning to build a plant capable of making 2 million to 2.5 million wheels a year, with production coming on stream in about two years. Superior's existing capacity is for about 12.5 million wheels a year.
Mr. Borick put the plant investment at $125 million to $135 million. Site selection is under way. Funding is expected to come from existing finances, but the company "is evaluating credit options," he said.
"The opportunities and challenges in our business have clarified the next steps to improve our operating returns," Mr. Borick said. "While our operations in Mexico consistently have performed at class-leading levels, it has been evident we are not currently positioned to participate fully in North American market growth."
Mr. Borick said the supplier also plans to improve operations in the U.S. and Mexico.
Superior claims to be the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America, operating five plants in the U.S. and Mexico.