Superior Industries International Inc. reported on Thursday a fall in second-quarter income, blaming slower sales and low margins that it expects to improve with the opening of a new plant in Mexico.
The Van Nuys manufacturer of aluminum wheels reported net income of $5 million (18 cents a share) for the quarter ending June 29, compared with $6.3 million (23 cents) in the same period a year earlier. Revenue remained flat at $199 million.
Analysts on average expected net income of 23 cents on revenue of $193 million, according to Thomson Financial Network.
Chief Executive Don Stebbins said the earnings results clarify the challenges the company faces from competitors.
“Our results highlight the need to reduce factory costs to improve margins and also to bolster our longer-term competitive position,” Stebbins said in a prepared statement.
Superior released its second quarter earnings the day after announcing it would close one of its plants in Arkansas. It plans to open a fourth factory in Chihuahua, Mexico, where it already operates three. It also is in the midst of a proxy battle over the makeup of its board of directors.
Shares closed down $1.44, or 7.1 percent, to $18.71 on the New York Stock Exchange.
Ryland Group Inc. on Thursday announced rising revenue in the second quarter, though it failed to meet analyst expectations on net income as the company suffered from the reversal of a tax benefit.
The Westlake Village homebuilder reported net income of $32 million (57 cents a share) for the quarter ended June 30, compared to $231 million ($4.16) for the same period last year. Revenue rose 17 percent to $577 million.
Ryland’s earnings missed analysts’ average per-share estimate of 68 cents a share and revenue expectations of $618 million, according to Thomson Financial Network.
The company attributed the drop in net income to a tax benefit that inflated its net income a year ago but was not available this past quarter.
Homebuilding revenue rose 18.5 percent to $566 million, as closings increased 2.5 percent to 1,700 units. The average sale price rose 16 percent to $333,000.
Shares closed down $2.73 cents, or 7.8 percent to $32.10 on the New York Stock Exchange.
PS Business Parks Inc. posted second quarter net income that beat analyst expectations, as the company continues to enjoy strong rental rates at its facilities.
The Glendale real estate investment trust reported funds from operations of $43.2 million ($1.26 a share) in the quarter ended June 30, compared to $38.9 million ($1.22) in the same period a year earlier. Rental revenue increased about 7 percent to $94 million.
Funds from operations, or FFO, is a key REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow.
Analysts on average expected FFO of $1.22 a share on revenue of $94.1 million, according to Thomson Financial.
The company said the increase in FFO was primarily due to increases in both net operating income at parks and strong rental rates.
PS Business Parks develops and operates multi-tenant flex, office and industrial properties. As of June 30, the company owned 29.9 million rentable square feet with approximately 5,100 customers located in eight states.
The company also announced two acquisitions, one in Florida and one in Texas, that add up to about 170,000 square feet of space for about $14 million. Also, the company declared a quarterly dividend of 50 cents a share, payable on Sept. 30 to shareholders of record on Sept. 15.
The earnings were released late Wednesday afternoon. Shares closed on Thursday down 80 cents, or nearly 1 percent, to $82.50 on the New York Stock Exchange.