© Reuters.
SOUTHFIELD, Mich. – Superior Industries International , Inc. (NYSE:), a prominent aluminum wheel supplier, disclosed its financial results for the fourth quarter ended December 31, 2023, revealing a net loss and a decline in revenue.
The company reported a fourth-quarter loss per share of -$0.44, which was significantly below the analyst consensus estimate of $0.07. Revenue for the quarter was reported at $309 million, falling short of the consensus estimate of $338.3 million.
Compared to the same period last year, the company’s net sales decreased by 23%, from $402.1 million to $309 million. This decline was attributed to several factors, including lower aluminum prices, the deconsolidation of a subsidiary, and lower unit sales, partially offset by favorable product mix and foreign exchange. The company’s adjusted EBITDA for the fourth quarter also decreased to $23 million, from $58 million in the prior year period.
Majdi Abulaban, President and CEO of Superior, commented on the resilience of the team amidst challenging operating conditions that impacted financial results. He highlighted the company’s focus on optimizing business and transforming European operations to improve cost structure. Abulaban expressed confidence in the company’s future, stating, “We look forward to delivering sustainable growth and long-term value for our shareholders in the year ahead.”
For the full year 2023, Superior Industries reported net sales of $1,385 million, a 16% decrease YoY, with adjusted EBITDA declining to $159 million. The company’s net loss for the year was $93 million, which included a non-cash charge of $80 million for the deconsolidation of a subsidiary and $23 million of restructuring charges.
Looking ahead, Superior Industries provided guidance for the fiscal year 2024, expecting net sales to be in the range of $1.38 to $1.48 billion, which is below the analyst consensus of $1.56 billion. The company anticipates the first quarter of 2024 to be challenging due to the transfer of wheel production to Poland and other factors such as labor and energy inflation.
Despite the near-term challenges, Superior Industries is optimistic about the value accretion from its strategic actions in Europe and expects to exit 2024 with a stronger competitive position and improved earnings power. The company projects significant improvements in sales and earnings in the future, targeting value-added sales of $890 million, adjusted EBITDA of $240 million, and unlevered free cash flow of $150 million by the year 2027.
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