Superior Industries International, Inc. (SUP): Business Model Canvas [11-2024 Updated]
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Superior Industries International, Inc. (SUP) Bundle
Discover how Superior Industries International, Inc. (SUP) leverages its unique business model to thrive in the competitive automotive sector. From strategic partnerships with OEMs to a focus on innovation and sustainability, SUP's approach is designed to meet the evolving needs of both manufacturers and consumers. Delve into the components of their Business Model Canvas, which outlines their key activities, resources, and revenue streams that drive success in the aluminum wheel industry.
Superior Industries International, Inc. (SUP) - Business Model: Key Partnerships
OEMs for aluminum wheel supply
Superior Industries International engages in partnerships with various Original Equipment Manufacturers (OEMs) for the supply of aluminum wheels. The company’s net sales for the first nine months of 2024 were $957.0 million, a decrease from $1,076.6 million during the same period in 2023, largely attributed to lower aluminum cost pass-throughs to OEM customers amounting to $64.3 million.
Suppliers for raw materials like aluminum
Raw material suppliers are critical for Superior Industries, as aluminum is a primary component in their products. For the first nine months of 2024, the cost of sales was $875.6 million, down from $975.7 million in the same period in 2023, reflecting a decrease of 10.3% due to lower conversion costs and reduced volumes.
Logistics partners for distribution
Logistics partnerships are essential for the effective distribution of products. Superior Industries reported a gross profit of $81.4 million for the first nine months of 2024, with a gross profit margin of 8.5%, which indicates the impact of efficient logistics on profitability.
Financial institutions for funding and debt management
Financial institutions play a pivotal role in providing funding and managing debt for Superior Industries. The company reported net interest expense of $49.6 million for the first nine months of 2024, an increase from $47.1 million in the same period in 2023. As of September 30, 2024, the carrying value of the term loan facility was $488.1 million.
| Partnership Type | Key Metrics | Financial Data |
|---|---|---|
| OEMs | Net Sales | $957.0 million (2024) |
| Raw Material Suppliers | Cost of Sales | $875.6 million (2024) |
| Logistics Partners | Gross Profit | $81.4 million (2024) |
| Financial Institutions | Net Interest Expense | $49.6 million (2024) |
Superior Industries International, Inc. (SUP) - Business Model: Key Activities
Design and manufacturing of aluminum wheels
Superior Industries International, Inc. specializes in the design and manufacturing of aluminum wheels for automotive applications. In the first nine months of 2024, total net sales reached $957 million, a decrease of 11.1% from $1,076.6 million in the same period of 2023. The North American segment contributed $602.9 million in sales, while the European segment accounted for $354.1 million.
Quality control and compliance processes
Quality assurance is critical in the manufacturing process. Superior Industries adheres to stringent quality control measures to ensure compliance with automotive industry standards. The company's gross profit margin was 8.5% for the first nine months of 2024, down from 9.4% in the previous year. This decrease is indicative of challenges faced in maintaining quality while managing costs amid fluctuating aluminum prices.
Research and development for product innovation
Research and development (R&D) are vital for product innovation at Superior Industries. The company allocated substantial resources towards R&D efforts, resulting in an adjusted EBITDA of $111.6 million for the nine months ended September 30, 2024, down from $136.1 million in the same period of 2023. This represents a margin of 11.7% of net sales.
Supply chain management and logistics
Efficient supply chain management is essential for Superior Industries, especially given the impact of global supply chain disruptions. As of September 30, 2024, accounts payable stood at $143.8 million, reflecting the company's obligations to suppliers. The cost of sales for the first nine months of 2024 was $875.6 million, a decrease of 10.3% from $975.7 million in the previous year.
| Key Metrics | 2024 (YTD) | 2023 (YTD) | Change |
|---|---|---|---|
| Total Net Sales | $957 million | $1,076.6 million | -11.1% |
| North America Sales | $602.9 million | $614.7 million | -1.9% |
| Europe Sales | $354.1 million | $461.9 million | -23.4% |
| Gross Profit Margin | 8.5% | 9.4% | -0.9% |
| Adjusted EBITDA | $111.6 million | $136.1 million | -18.0% |
| Cost of Sales | $875.6 million | $975.7 million | -10.3% |
Superior Industries International, Inc. (SUP) - Business Model: Key Resources
Manufacturing facilities in North America and Europe
As of September 30, 2024, Superior Industries operates multiple manufacturing facilities across North America and Europe, which are essential for their production capabilities. The North American segment has a total asset value of approximately $426.4 million, while the European segment's assets are valued at about $375.2 million.
Skilled workforce with engineering expertise
Superior Industries employs a workforce that includes a significant number of engineers and skilled laborers. This expertise is critical in maintaining high-quality production standards and innovation in wheel design. The total number of employees as of 2024 has not been specified, but the company has emphasized the importance of retaining skilled labor to enhance operational efficiency.
Intellectual property in wheel design
The company holds numerous patents related to wheel design and manufacturing processes. This intellectual property is a key competitive advantage, allowing Superior Industries to innovate and differentiate its products in the automotive market.
Strong relationships with major automotive manufacturers
Superior Industries has established strong partnerships with major automotive manufacturers, which are crucial for securing contracts and maintaining a steady demand for their products. The net sales from North America for the first nine months of 2024 amounted to $602.9 million, while European net sales reached $354.1 million.
| Key Resource | Details | Value (as of 2024) |
|---|---|---|
| Manufacturing Facilities | North America and Europe | $426.4 million (North America), $375.2 million (Europe) |
| Skilled Workforce | Engineers and skilled laborers | Not specified |
| Intellectual Property | Patents related to wheel design | Valuable competitive advantage |
| Automotive Relationships | Partnerships with major manufacturers | Net sales: $602.9 million (North America), $354.1 million (Europe) |
Superior Industries International, Inc. (SUP) - Business Model: Value Propositions
High-quality aluminum wheels for OEMs and aftermarket
Superior Industries International, Inc. specializes in the design and manufacturing of high-quality aluminum wheels for original equipment manufacturers (OEMs) and the aftermarket. In 2024, the company reported net sales of $957 million for the first nine months, down from $1.077 billion in the same period in 2023, largely attributed to lower volumes and pricing adjustments.
Customizable designs to meet specific vehicle needs
The company offers customizable wheel designs tailored to meet the unique specifications of various vehicle models. This flexibility allows them to cater to a diverse client base across different automotive segments. In terms of segment performance, North America generated $602.9 million in sales while Europe contributed $354.1 million in the first nine months of 2024.
Competitive pricing with aluminum cost pass-throughs
Superior Industries employs a cost pass-through model that allows it to maintain competitive pricing. For the first nine months of 2024, the company noted a decrease of $64.3 million in aluminum cost pass-throughs to OEM customers. This pricing strategy is vital in an industry where raw material costs are volatile.
Commitment to sustainability and reduced environmental impact
In 2024, Superior Industries emphasized its commitment to sustainability and reducing environmental impact through various initiatives. The company's efforts include optimizing manufacturing processes to minimize waste and energy consumption. This aligns with broader industry trends where OEMs and consumers increasingly prioritize environmentally friendly practices.
| Value Proposition | Details | Financial Impact (2024) |
|---|---|---|
| High-quality aluminum wheels | Manufactured for OEMs and aftermarket | Net sales: $957 million (9M 2024) |
| Customizable designs | Tailored to vehicle specifications | North America sales: $602.9 million |
| Competitive pricing | Aluminum cost pass-through model | Decrease of $64.3 million in pass-throughs |
| Sustainability commitment | Optimizing processes to reduce waste | Aligns with consumer preferences in 2024 |
Superior Industries International, Inc. (SUP) - Business Model: Customer Relationships
Long-term contracts with OEMs for stable demand
Superior Industries International, Inc. maintains long-term contracts with various Original Equipment Manufacturers (OEMs), which are crucial for ensuring stable demand for its products. As of September 30, 2024, net sales for North America stood at $602.9 million, while Europe reported $354.1 million. These contracts allow SUP to pass through fluctuations in aluminum costs, which amounted to a decrease of $64.3 million in lower aluminum cost pass-throughs during the first nine months of 2024 compared to the previous year.
Aftermarket support through various brands
SUP provides extensive aftermarket support through its various brands, enhancing customer loyalty and driving repeat business. The company’s value-added sales adjusted for foreign exchange were $522.5 million for the first nine months of 2024, reflecting a decrease from $578.9 million in the same period of 2023. This support is vital for maintaining relationships with existing customers and attracting new ones, especially in a highly competitive market.
Customer service focused on responsiveness and reliability
Customer service at Superior Industries is centered on responsiveness and reliability, which are critical to maintaining strong relationships with OEMs and aftermarket clients. The company's selling, general, and administrative (SG&A) expenses were $66.1 million for the first nine months of 2024, an increase from $53.3 million in the same period of 2023. This increase indicates a commitment to enhancing customer service capabilities to better serve clients and address their needs promptly.
Engagement through feedback and product development partnerships
Engagement with customers through feedback and product development partnerships is a key strategy for SUP. The company actively seeks input from its OEM partners to refine its product offerings. In the third quarter of 2024, net income (loss) was reported at $(24.8) million, an improvement from $(86.3) million in the same quarter of 2023, indicating a positive response to customer engagement strategies.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales - North America | $206.2 million | $194.9 million | $11.4 million |
| Net Sales - Europe | $115.5 million | $128.2 million | $(12.7) million |
| SG&A Expenses | $23.9 million | $16.9 million | $7.0 million |
| Net Income (Loss) | $(24.8) million | $(86.3) million | $61.5 million |
Superior Industries International, Inc. (SUP) - Business Model: Channels
Direct sales to OEMs for new vehicle production
Superior Industries primarily engages in direct sales to original equipment manufacturers (OEMs) for the production of new vehicles. For the first nine months of 2024, net sales from North America amounted to $602.9 million, reflecting a decrease of 1.9% compared to the same period in 2023. The decline was attributed to lower aluminum cost pass-throughs of $14.9 million and a diminished pricing and product mix of $6.2 million, partially offset by higher volumes of $9.0 million.
Distribution through aftermarket channels in Europe
In Europe, Superior Industries operates through various aftermarket channels, generating significant revenue. For the first nine months of 2024, net sales from the European segment were $354.1 million, down 23.4% from $461.9 million in the same period in 2023. This decrease resulted from lower aluminum cost pass-throughs of $49.4 million, lower volumes of $48.3 million, and a lower pricing and product mix of $10.6 million.
Online platforms for brand visibility and customer engagement
Superior Industries enhances its brand visibility and customer engagement through online platforms. Although specific financial metrics for online sales are not disclosed, the integration of digital marketing strategies is a key component of their overall sales approach. This includes leveraging social media and their corporate website to increase customer interaction and drive sales.
Trade shows and automotive industry events for networking
Participation in trade shows and automotive industry events is vital for Superior Industries to network and showcase their products. These events allow them to connect with potential clients and industry partners, facilitating business development and sales opportunities. While financial specifics regarding the impact of trade shows on revenue are not detailed, the strategic importance of these events is recognized in their marketing and sales strategies.
| Channel | Net Sales (2024) | Net Sales (2023) | Change (%) | Key Factors Affecting Sales |
|---|---|---|---|---|
| Direct Sales to OEMs | $602.9 million | $614.7 million | -1.9% | Lower aluminum pass-throughs, pricing mix |
| Aftermarket in Europe | $354.1 million | $461.9 million | -23.4% | Lower aluminum pass-throughs, volume decline |
| Online Platforms | N/A | N/A | N/A | Brand visibility and engagement |
| Trade Shows | N/A | N/A | N/A | Networking and business development |
Superior Industries International, Inc. (SUP) - Business Model: Customer Segments
Major automotive OEMs in North America and Europe
Superior Industries International, Inc. primarily serves major automotive Original Equipment Manufacturers (OEMs) in North America and Europe. In the first nine months of 2024, net sales to the North American segment were $602.9 million, while sales to the European segment were $354.1 million. This reflects a decline in sales compared to the previous year, with North America experiencing a decrease of 1.9% and Europe a significant drop of 23.4%.
Aftermarket consumers in the European market
In addition to OEMs, Superior Industries targets aftermarket consumers in the European market. The company's aftermarket wheels are sold under several brands, including ATS, RIAL, ALUTEC, and ANZIO. The European segment's aftermarket sales have historically contributed to revenue, but in the first nine months of 2024, total net sales in Europe decreased by $107.9 million compared to the same period in 2023.
Specialty vehicle manufacturers requiring custom wheels
Superior Industries also caters to specialty vehicle manufacturers that require custom wheels tailored to specific vehicle designs and performance requirements. While detailed financial data specific to this segment is not disclosed, it is noted that the company’s ability to provide specialized products positions it competitively within this niche market.
Fleet operators needing bulk wheel solutions
Fleet operators represent another significant customer segment for Superior Industries. The company provides bulk wheel solutions designed to meet the needs of commercial fleets. This segment has been increasingly important, particularly as fleet operators seek reliable and cost-effective solutions to manage their vehicle wheels efficiently.
| Customer Segment | Net Sales (2024) | Change from Previous Year | Key Brands |
|---|---|---|---|
| Major Automotive OEMs (North America) | $602.9 million | -1.9% | N/A |
| Major Automotive OEMs (Europe) | $354.1 million | -23.4% | N/A |
| Aftermarket Consumers (Europe) | N/A | N/A | ATS, RIAL, ALUTEC, ANZIO |
| Specialty Vehicle Manufacturers | N/A | N/A | N/A |
| Fleet Operators | N/A | N/A | N/A |
Superior Industries International, Inc. (SUP) - Business Model: Cost Structure
Raw Material Costs, Primarily Aluminum
In 2024, the cost of sales for Superior Industries was reported at $875.6 million for the first nine months, a decrease of 10.3% from $975.7 million in the same period of 2023. This reduction was primarily attributed to lower conversion costs of $81.1 million and lower volumes of $23.2 million. The company's raw material costs, predominantly aluminum, are significant due to the fluctuating prices of aluminum in the market, which can directly affect overall costs. In the first nine months of 2024, aluminum pass-throughs to OEM customers contributed to a decrease in sales by $64.3 million.
Operating Expenses of Manufacturing Facilities
The operating expenses associated with manufacturing facilities include labor, maintenance, and overhead costs. For the first nine months of 2024, the company reported a gross profit margin of 8.5%, down from 9.4% in 2023, indicating pressure on operating expenses. Additionally, depreciation and amortization expenses for property, plant, and equipment reached approximately $65.5 million for the first nine months of 2024. The significant loss on deconsolidation of the German subsidiary also impacted operating expenses, with a charge of $79.6 million recognized.
Research and Development Costs for Product Innovation
Research and development costs are critical for maintaining competitiveness through product innovation. While specific figures for R&D expenditures were not detailed in the latest financial reports, the company has indicated a focus on improving product quality and developing new offerings. This aligns with their capital expenditure forecast of $30 million to $40 million for 2024, which includes investments in research and development.
Selling, General, and Administrative Expenses
Selling, general, and administrative (SG&A) expenses were reported at $66.1 million for the first nine months of 2024, up from $53.3 million in 2023, reflecting an increase of $12.8 million. This rise was primarily due to restructuring costs associated with the European Transformation and debt refinancing. The breakdown of SG&A expenses is as follows:
| Period | SG&A Expenses ($ in millions) | Change from Previous Period ($ in millions) |
|---|---|---|
| Q3 2024 | 23.9 | 7.0 |
| First 9 months 2024 | 66.1 | 12.8 |
| Q3 2023 | 16.9 | - |
| First 9 months 2023 | 53.3 | - |
Overall, the increase in SG&A expenses highlights the financial strain due to restructuring efforts and the challenges faced in the European market.
Superior Industries International, Inc. (SUP) - Business Model: Revenue Streams
Sales of aluminum wheels to OEMs
For the first nine months of 2024, Superior Industries reported net sales of approximately $957 million, which reflects a decline from $1.076 billion in the same period of 2023. The decrease is attributed primarily to lower aluminum cost pass-throughs to OEM customers, totaling about $64.3 million, and a reduction in volume sales of $39.3 million.
Aftermarket sales through various retail brands
Superior Industries also engages in aftermarket sales, contributing to its revenue streams. The aftermarket segment is characterized by sales of aluminum wheels through various retail brands, though specific figures for this segment are not detailed in the financial reports. However, it is known that the overall decline in net sales indicates challenges in this area, similar to the trends seen in OEM sales.
Revenue from custom wheel designs and special projects
In addition to standard product offerings, Superior Industries generates revenue from custom wheel designs and special projects. This segment allows the company to cater to niche markets and specific customer requirements, enhancing its value proposition. Financial specifics regarding this segment's contribution were not disclosed in the recent financial statements, indicating a need for further internal reporting or segmentation analysis to quantify its impact accurately.
Potential royalties from licensing intellectual property
Lastly, Superior Industries holds potential revenue opportunities through licensing agreements for its intellectual property. While no current figures are available for royalties earned or expected from these arrangements, the company's ongoing innovation in wheel design and manufacturing processes may provide avenues for future revenue through licensing deals.
| Revenue Source | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Sales (Total) | $957 million | $1.076 billion | $(119 million) |
| OEM Sales (Decrease in pass-throughs) | $64.3 million | N/A | N/A |
| Volume Sales Decline | $39.3 million | N/A | N/A |
| Aftermarket Sales | N/A | N/A | N/A |
| Custom Wheel Designs | N/A | N/A | N/A |
| Licensing Royalties | N/A | N/A | N/A |
Updated on 16 Nov 2024
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.