NSANY Nissan Motor Company Ltd (PK)

Superior Industries International Inc. (SUP) reported a net income of $14.7 million or 53 cents per share in the second quarter of 2011 compared with $10.1 million or 38 cents per share in the year-ago quarter. Earnings per share comprehensively beat the Zacks Consensus Estimate of 37 cents per share. The significant upside in results was attributed to strong and stable demand for the company’s products, partially offset by a decline of shipments to Toyota arising from the earthquake and tsunami in Japan.

During the quarter, net sales climbed 7% year over year to $208.7 million, primarily driven by an increase in the pass-through pricing of aluminum. Unit wheel shipments remained almost flat year over year at 2.9 million, although average selling prices increased almost 8% year over year.

Cost of sales increased 13.5% year over year to $189.2 million, resulting from a shift in product mix and the associated difficulties in manufacturing the desired product mix. Higher cost of sales in the reported quarter was responsible for the decline in gross profit, which plunged 30% to $19.5 million.

However, selling, general and administrative expenses dropped 12.3% to $6.4 million, due to reductions in professional fees and incentive compensation expense, partly offset by an increase in the provision for bad debts.

As of June 30, 2011, Superior Industries had working capital of $333.0 million including cash, cash equivalents and short-term investments of $149.6 million. This compares favorably with a working capital of $274.7 million including cash, cash equivalents and short-term investment of $143.4 million as of June 30, 2010. The company’s balance sheet is devoid of any interest bearing debt.

Based in California, Superior Industries is one of the world’s largest designers and manufacturers of cast aluminum road wheels for the automotive industry. Superior Industries’ aluminum road wheels are sold to OEMs such as Audi, BMW, Chrysler LLC, General Motors Company (GM), Fiat, Ford Motor Co. (F), Jaguar, Land Rover, Mazda, Mercedes Benz, Mitsubishi, Nissan Motor Co. Ltd. (NSANY), Skoda, Subaru, Suzuki, Toyota Motor Corp. (TM), Volkswagen and Volvo AB (VOLVY) for their automobiles and light trucks.

The company also produces certain accessories for the automotive aftermarket.  The shares of the company are maintaining a Zacks#3 Rank, which translates into a short-term Hold rating.

 
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