Superior Industries International, Inc. (NYSE:SUP), the
largest manufacturer of aluminum wheels for passenger cars and
light-duty vehicles in North America, today announced its outlook for
2016 and a new stock repurchase program.
2016 Outlook
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Based on the current economic and market outlook, Superior expects
value-added sales to be in the range of $370 million to $390 million,
driven by unit shipment growth of approximately 1 percent to 4 percent
and favorable product mix. Value-added sales exclude the value of
aluminum and outsourced process costs passed through to customers.
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Adjusted EBITDA margin as a percentage of value-added sales is
expected to increase in the range of 125 basis points to 200 basis
points.
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Net sales are expected to be in the range of $720 million to $740
million. The lower rate of year-over-year growth for net sales
primarily reflects the Company’s assumption for lower aluminum prices
in 2016. Net sales include the value of aluminum and outsourced
process costs passed through to customers.
-
Adjusted EBITDA as a percentage of net sales is expected to increase
in the range of 100 basis points to 175 basis points.
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Capital expenditures are expected to be approximately $40 million.
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Working capital is expected to be a slight net source of funds.
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The effective tax rate is expected to be in the low 20 percent range.
Superior’s Board of Directors authorized a new $50 million stock
repurchase program, which is in addition to the existing $30 million
program announced in October 2014. As of January 13, 2016, there is
approximately $4.8 million of authorization remaining on the 2014
program.
“The encouraging progress that we have made in the Company’s evolution
is expected to result in reaching double-digit adjusted EBITDA margins
in 2015, two years ahead of our original goal,” commented Don Stebbins,
President and Chief Executive Officer of Superior Industries. “As we
enter 2016, we are focused on continuous improvement toward operational
excellence. We will continue to advance our manufacturing platform and
implement best-in-class processes throughout the organization, while
growing value-added sales. Looking beyond 2016, we believe opportunities
remain to drive additional EBITDA margin expansion.”
Mr. Stebbins continued, “The new share buyback program reflects the
confidence of the Board of Directors and the management team in
Superior’s long term plan and our continued commitment to increasing
shareholder returns.”
Underlying Assumptions
Based on IHS projections, the Company expects North American Light
Vehicle production to increase approximately 4 percent to 18.2 million
units in 2016.
Superior Industries will discuss its fiscal 2016 outlook in further
detail during its fourth quarter and full-year 2015 earnings call.
Non-GAAP Financial Information
We have not quantitatively reconciled differences between valued-added
sales and adjusted EBITDA margins and their corresponding GAAP measures
due to the inherent uncertainty regarding variables affecting the
comparison of these measures. The magnitude of these differences,
however, may be significant.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all statements
that do not relate solely to historical or current facts and can
generally be identified by the use of future dates or words such as
"may," "should," "could," “will,” "expects," "seeks to," "anticipates,"
"plans," "believes," "estimates," "intends," "predicts," "projects,"
"potential" or "continue" or the negative of such terms and other
comparable terminology. These statements also include, but are not
limited to, the 2015 and 2016 outlook and projections for reported net
sales, value-added sales, EBITDA margin, capital expenditures and the
change in working capital, and the Company’s strategic and operational
initiatives, and are based on current expectations, estimates and
projections about the company's business based, in part, on assumptions
made by management. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, risks and uncertainties discussed in
the company's Securities and Exchange Commission filings and reports,
including the company's 2014 Annual Report on Form 10-K and our reports
from time to time filed with the Securities and Exchange Commission. You
are cautioned not to unduly rely on such forward looking statements when
evaluating the information presented in this press release. Such
forward-looking statements speak only as of the date on which they are
made and the company does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the
date of this release.
About Superior Industries
Headquartered in Southfield, Michigan, Superior is the largest
manufacturer of aluminum wheels for passenger cars and light-duty
vehicles in North America. From its plants in the U.S. and Mexico, the
company supplies aluminum wheels to the original equipment market. Major
customers include BMW, FCA, Ford, General Motors, Mazda, Nissan, Subaru,
Tesla, Toyota and Volkswagen. For more information, visit www.supind.com.
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