Superior Industries’ Profit Falls

Superior Industries International Inc. said Friday that its profit fell 48% in the fourth quarter, citing competition from China and other low-cost countries that has driven down prices for automotive components. But it still beat Wall Street estimates and provided an optimistic outlook, sending its shares up 8.9%.

The Van Nuys-based supplier of aluminum wheels and car parts said its net income fell to $11.9 million, or 45 cents a share, from $23.1 million, or 85 cents, a year earlier.

Results for the latest quarter include a $2.9-million pretax charge for shipments to Tower Automotive Inc., which filed for bankruptcy protection two weeks ago, and a $1.4-million reduction in tax reserves.

Analysts surveyed by Thomson First Call had forecast, on average, earnings of 40 cents a share for the latest quarter.

Revenue rose 1.6% to $234.5 million from $230.7 million.

On the back of these results, Robert W. Baird & Co. upgraded its rating on Superior Industries to “neutral” from “underperform.”

Shares of Superior Industries rose $2.20 to $27 on the New York Stock Exchange.

Competition from China and other countries has “fractured long-established ways of doing business and underscored the necessity for every industry participant to increase efficiency and reduce costs,” Chief Executive Steven Borick said.

Superior Industries said it was reducing costs to combat the increased competition.

For all of 2004, net income declined to $44.7 million, or $1.67 a share, from $73.7 million, or $2.73, in 2003. Revenue climbed 7.3% to $901.8 million from $840.3 million.

Superior Industries supplies aluminum wheels and other aluminum automotive components to the major auto companies, including Ford Motor Co., General Motors Corp., DaimlerChrysler, Audi, BMW, Isuzu Motors Ltd., Mazda Motor Corp., Mitsubishi Motors Corp., Nissan Motor Co. and Toyota Motor Corp.

The emergence of manufacturing in China is something Superior has taken note of, said Borick, who pointed to its latest state-of-the-art manufacturing facility under construction in Mexico. The plant is geared for the production of increasingly popular large-diameter wheels, he said.

“We also are exploring joint venture opportunities to establish a manufacturing presence in China and other parts of the world,” Borick said.