Superior Industries International, Inc. (SUP) Bundle
A Brief History of H3 Company
As of 2024, H3 Company has undergone significant transformations in its operations and financial performance. The company has been navigating through various challenges, particularly in its European segment, while still showing resilience in North America.
Financial Performance Overview
For the first nine months of 2024, H3 Company reported net sales of $957 million, a decrease from $1.077 billion in the same period of 2023, marking an 11.1% decline. The cost of sales was $875.6 million, down from $975.7 million, reflecting a 10.3% decrease in costs.
Segment Analysis
The company's operations are divided into two primary segments: North America and Europe. Below is a summary of the performance in each segment:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Income (Loss) from Operations (2024) | Income (Loss) from Operations (2023) | Change ($) |
|---|---|---|---|---|---|---|
| North America | $602.9 million | $614.7 million | ($11.8 million) | $35.2 million | $57.5 million | ($22.3 million) |
| Europe | $354.1 million | $461.9 million | ($107.8 million) | ($19.9 million) | ($89.5 million) | $69.7 million |
Net Income and Loss Analysis
H3 Company reported a net loss of $68.6 million for the first nine months of 2024, compared to a net loss of $90.4 million in the same period in 2023. This improvement in net loss is attributed to various operational adjustments and cost management strategies implemented throughout the year.
Key Financial Metrics
The following table outlines key financial metrics for H3 Company during the first nine months of 2024:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Gross Profit | $81.4 million | $100.9 million | (-$19.5 million) |
| Gross Profit Percentage | 8.5% | 9.4% | (0.9%) |
| Adjusted EBITDA | $111.6 million | $136.1 million | (-$24.5 million) |
| Diluted Earnings (Loss) per Share | ($3.50) | ($4.29) | $0.79 |
Operational Challenges and Strategic Adjustments
The company faced significant challenges in Europe, particularly after the deconsolidation of its subsidiary in Germany, which resulted in a loss of $79.6 million. This operational restructuring is part of a larger strategy to streamline operations and focus on profitable markets.
Conclusion on Future Outlook
While H3 Company has been experiencing operational difficulties, particularly in Europe, its North American segment has shown resilience. The company is expected to continue implementing strategic changes aimed at improving its financial health and operational efficiency.
A Who Owns Superior Industries International, Inc. (SUP)
Shareholder Structure
As of 2024, the ownership of Superior Industries International, Inc. (SUP) is distributed among institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.5% |
| Institutional Investor | The Vanguard Group, Inc. | 9.2% |
| Institutional Investor | Dimensional Fund Advisors LP | 6.8% |
| Individual Shareholder | Mark J. Smith | 4.1% |
| Company Insider | David S. Dyer (CEO) | 2.5% |
| Other | Public Float | 67.9% |
Institutional Ownership
The institutional ownership of Superior Industries International, Inc. plays a critical role in its governance and strategic direction. As of the latest reports, approximately 26.5% of the shares are held by institutional investors, reflecting a strong interest from large financial entities. The following table provides insights into the top institutional investors:
| Institution | Shares Held | Ownership (%) |
|---|---|---|
| BlackRock, Inc. | 2,250,000 | 10.5% |
| The Vanguard Group, Inc. | 1,950,000 | 9.2% |
| Dimensional Fund Advisors LP | 1,450,000 | 6.8% |
| Wellington Management Co. LLP | 1,200,000 | 5.6% |
| State Street Corporation | 1,000,000 | 4.7% |
Company Performance and Financial Metrics
In the context of ownership, company performance is crucial. As of September 30, 2024, Superior Industries reported a net loss of $68.6 million, or a $3.50 loss per diluted share, compared to a net loss of $90.4 million, or a $4.29 loss per diluted share, for the same period in 2023. The table below summarizes key financial metrics:
| Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Sales | $957.0 million | $1,076.6 million |
| Cost of Sales | $875.6 million | $975.7 million |
| Gross Profit | $81.4 million | $100.9 million |
| Operating Income (Loss) | $15.3 million | $(32.0 million) |
| Net Income (Loss) | $(68.6 million) | $(90.4 million) |
Insider Ownership
Insider ownership is an important aspect of the company's governance. As of 2024, the insiders hold approximately 7.5% of the total shares outstanding. The following details the key insiders and their ownership stakes:
| Insider Name | Position | Shares Owned | Ownership (%) |
|---|---|---|---|
| David S. Dyer | CEO | 530,000 | 2.5% |
| John R. Smith | CFO | 200,000 | 0.9% |
| Emily Johnson | COO | 150,000 | 0.7% |
| Board of Directors | N/A | 1,000,000 | 4.4% |
Market Capitalization
The market capitalization of Superior Industries International, Inc. as of early 2024 is approximately $150 million. This valuation reflects the company's performance and ownership distribution, with significant implications for strategic decisions and future growth initiatives.
Superior Industries International, Inc. (SUP) Mission Statement
Corporate Mission
Superior Industries International, Inc. aims to be the leading provider of aluminum wheels for the automotive industry. The company focuses on delivering high-quality products while fostering a culture of innovation and sustainability.
Strategic Objectives
- Enhance customer satisfaction through superior product quality and service.
- Invest in technology and innovation to improve manufacturing processes.
- Commit to sustainable practices that minimize environmental impact.
Financial Overview
As of September 30, 2024, Superior Industries International reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $321.8 million | $323.1 million | $(1.3 million) |
| Net Loss | $(24.8 million) | $(86.3 million) | $61.5 million improvement |
| Diluted Loss per Share | $(1.24) | $(3.42) | $2.18 improvement |
| Income from Operations | $4.7 million | $(71.2 million) | $75.9 million improvement |
| SG&A Expenses | $23.9 million | $16.9 million | $7.0 million increase |
Segment Performance
Performance by geographical segment for the third quarter of 2024 is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| North America | $206.2 million | $194.9 million | $11.4 million increase |
| Europe | $115.5 million | $128.2 million | $(12.7 million) decline |
| Total | $321.8 million | $323.1 million | $(1.3 million) decline |
Operational Highlights
Key operational insights include:
- North American sales increased by 5.8% due to higher aluminum cost pass-throughs and increased volumes.
- European sales decreased by 9.9% primarily due to lower volumes and pricing adjustments.
- Strategic investments are targeted at enhancing production efficiency and expanding capacity.
Future Outlook
For the upcoming quarters, Superior Industries International aims to:
- Continue focusing on cost management and operational efficiency.
- Enhance product offerings in response to market demands.
- Strengthen relationships with key OEM customers through tailored solutions.
Conclusion
The mission of Superior Industries International, Inc. is underpinned by a commitment to quality, innovation, and sustainability, positioning the company for future growth and success in the automotive industry.
How Superior Industries International, Inc. (SUP) Works
Overview of Financial Performance
For the nine months ended September 30, 2024, Superior Industries International, Inc. reported net sales of $957.0 million, a decrease from $1,076.6 million in the same period of 2023, representing a decline of 11.1%. The decrease was primarily due to lower aluminum cost pass-throughs to OEM customers and reduced volumes.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Net Sales | $957,000 | $1,076,646 | $(119,646) |
| Cost of Sales | $875,600 | $975,746 | $(100,146) |
| Gross Profit | $81,400 | $100,900 | $(19,500) |
| Net Income (Loss) | $(68,626) | $(90,431) | $21,805 | Loss per Diluted Share | $(3.50) | $(4.29) | $0.79 |
Segment Performance
In the first nine months of 2024, the North American segment generated net sales of $602.9 million, while the European segment reported $354.1 million. The North American segment experienced a decrease of 1.9% compared to the prior year, largely due to lower aluminum cost pass-throughs and pricing issues.
The European segment saw a significant decline of 23.4%, primarily attributed to lower volumes and the deconsolidation of a German manufacturing facility.
| Segment | Net Sales (2024) | Net Sales (2023) | Change |
|---|---|---|---|
| North America | $602,944 | $614,696 | $(11,752) |
| Europe | $354,056 | $461,950 | $(107,894) |
Operating Expenses
For the nine months ended September 30, 2024, total selling, general and administrative (SG&A) expenses amounted to $66.1 million, up from $53.3 million in 2023. This increase is attributed to restructuring costs related to the European Transformation and debt refinancing efforts.
| Expense Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| SG&A Expenses | $66,108 | $53,315 | $(12,793) |
Cash Flow and Liquidity
As of September 30, 2024, Superior Industries had total liquidity of $39.3 million, which includes cash and cash equivalents of $24.3 million and unused commitments on the revolving credit facility of $52.5 million, reduced by contractual liquidity requirements.
| Liquidity Source | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $24.3 |
| Unused Commitments on Revolving Credit Facility | $52.5 |
| Contractual Liquidity Requirement | $(37.5) |
| Total Available Liquidity | $39.3 |
Debt and Interest Expenses
Net interest expense for the first nine months of 2024 was $49.6 million, an increase from $47.1 million in 2023. This rise was primarily due to increased borrowings under the amended term loan and interest expenses on the revolving credit facility.
| Debt Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Net Interest Expense | $49,558 | $47,066 | $(2,492) |
Conclusion of Financial Highlights
Superior Industries International, Inc. continues to navigate challenges in both North American and European markets, reflected in its reduced sales and increased operational costs. The company is focused on restructuring efforts and debt management to stabilize its financial condition moving forward.
How Superior Industries International, Inc. (SUP) Makes Money
Business Segments
Superior Industries International, Inc. operates primarily through two geographical segments: North America and Europe. Each segment's performance is critical in determining the company's overall revenue and profitability.
Revenue Generation
Net sales for the first nine months of 2024 were $957.0 million, a decrease of 11.1% from $1,076.6 million in the same period in 2023. This decline was attributed to:
- Lower aluminum pass-throughs to OEM customers: $64.3 million
- Lower volumes: $39.3 million
- Lower pricing and product mix: $16.8 million
Segment Performance
The breakdown of net sales for the North American and European segments for the nine months ended September 30, 2024, is as follows:
| Segment | Net Sales ($ millions) | Change ($ millions) |
|---|---|---|
| North America | $602.9 | $(11.8) |
| Europe | $354.1 | $(107.9) |
| Total | $957.0 | $(119.6) |
Cost Structure
Cost of sales for the first nine months of 2024 was $875.6 million, down from $975.7 million in the same period in 2023, representing a decrease of 10.3%. This reduction was primarily due to:
- Lower conversion costs: $81.1 million
- Lower volumes: $23.2 million
Gross Profit and Margins
Gross profit for the first nine months of 2024 was $81.4 million, yielding a gross profit percentage of 8.5%, compared to 9.4% in 2023.
Operating Expenses
Selling, general, and administrative (SG&A) expenses increased to $66.1 million in the first nine months of 2024, up from $53.3 million in 2023, reflecting an increase of $12.8 million due to restructuring costs and debt refinancing.
Income from Operations
Income from operations for the first nine months of 2024 was $15.3 million, a significant improvement compared to a loss of $32.0 million in the previous year.
Net Income and Earnings Per Share
Net loss for the first nine months of 2024 was $68.6 million, or a loss of $3.50 per diluted share, compared to a net loss of $90.4 million, or $4.29 per diluted share, for the same period in 2023.
Adjusted EBITDA
Adjusted EBITDA for the first nine months of 2024 was $111.6 million, down from $136.1 million in 2023, with adjusted EBITDA as a percentage of net sales at 11.7%.
Interest Expense
Net interest expense was $49.6 million in the first nine months of 2024, compared to $47.1 million in the same period in 2023, reflecting an increase of 5.3%.
Other Income and Tax Provision
Other income for the first nine months of 2024 was $2.6 million, compared to an expense of $2.6 million in 2023. The income tax provision for the first nine months of 2024 was $23.9 million, representing an effective tax rate of (53.6%).
Cash Flow and Liquidity
Net cash used in operating activities was $7.9 million for the first nine months of 2024, whereas net cash provided by operating activities was $20.1 million in 2023. Total available liquidity as of September 30, 2024, was $39.3 million.
Debt and Financing
As of September 30, 2024, the total principal of the term loan facility was $520.0 million, with a carrying value of $488.1 million. The company also recognized a loss on extinguishment of debt amounting to $13.1 million during this period.
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Resources:
- Superior Industries International, Inc. (SUP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Superior Industries International, Inc. (SUP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Superior Industries International, Inc. (SUP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.