Superior Industries International Inc. is still assessing the impact of the earthquake in Japan on its supply chain to that country’s automakers. Van Nuys-based Superior provides aluminum wheels to Toyota for its popular Camry and Corolla models, as well as Nissan and Mitsubishi. While much of Superior’s business is for the Big Three domestic automakers, the company was still keeping a close eye on developments in Japan since the earthquake and tsunami that struck the northern part of the country on March 11. Investors were doing the same. During a conference call to announce fourth quarter and full year earnings results, analysts asked Superior executives about the impact of reports of delayed shipments of needed components. The executives said that while Superior has received a few notices of overtime cuts, they were taking a “wait and see” approach to the news and would know more in the next couple of weeks. Private equity and wealth management firm Robert W. Baird & Co. expects that first quarter and second quarter results of publicly-traded auto industry suppliers will be negatively impacted by supply delays or plant closures. Toyota is already expecting to halt production at some of its plants in North America as a result of parts shortages. A report by Baird to investors lays out three scenarios: conditions do not worsen for publicly-traded suppliers; conditions get worse but then stabilize; and shares will go much lower. “The greatest risk, in our opinion, is the ripple effect of disruptions to the supply chain in terms of production (local/export) and infrastructure (power, roads, ports),” the report said. Earnings improve Superior improved its fourth quarter and full year earnings results with the increase in the average selling price of its aluminum wheels a contributing factor. The supplier reported net income of $22.3 million, or $0.82 per diluted share, on revenues of $191 million for the quarter ending Dec. 31. For the same period in 2009, the company had a net loss of $3.9 million, or $0.15 per diluted share, on revenues of $145 million. For the full 2010 fiscal year, Superior reported net income of $51.6 million, $1.93 per diluted share, on revenues of $719.5 million. For the previous fiscal year, the company had a net loss of $94 million, or $3.53 per diluted share, on revenues of $418.8 million. In the fourth quarter, unit shipments increased by 20 percent to Ford, by 8 percent to General Motors, by 5 percent to Chrysler and by 40 percent to international customers. “Strong demand from virtually all of our customers throughout the year reflected the recovery in the automotive sector and positively impacted our performance,” said Superior Chairman, CEO and President Steven Borick in a prepared statement. “As 2011 unfolds, strong industry momentum is continuing. We are actively evaluating a number of options to increase production levels, while maintaining cost controls.” Staff Reporter Mark R. Madler contributed to this story.
