A slower pace of production and idle manufacturing plants contributed to Superior Industries International Inc. reporting a net income loss for the third quarter, the company reported Wednesday. The Van Nuys-based maker of aluminum wheels for the automotive industry also said that it wrote off $3.4 million in pre-construction start-up costs for its third manufacturing plant in Mexico. The company reported a net loss of $7.7 million, or a diluted loss per share of $0.29, on revenues of $174.2 million for the quarter ending Sept. 30. The loss increased over the same reporting period in 2005 when Superior had a loss of $133,000 on revenues of $178.2 million. Due to a slow pace of production, the company had its lowest quarterly unit shipment level since 1998. Company plants were forced to shut down for some periods, three full weeks in some instances. During the quarter, the Superior completed the sale of its discontinued suspension components business to Saint Jean Industries; and announced the closure of its Johnson City, Tenn., plant in early 2007. Manufacturing in the new plant in Mexico is expected to begin in the fourth quarter, said Superior President and CEO Steven Borick, in a statement. “By optimizing our manufacturing capacity and reducing our costs, we are enhancing Superior’s ability to complete effectively in the global aluminum wheel market today and in the future,” Borick said. The company also credited the loses to fewer orders from Ford Motor Co., General Motors Corp. and DaimlerChrysler AG, which have announced layoffs and production cutbacks at its domestic and overseas plants after a year of mostly lackluster sales.
