Aluminum wheel manufacturer Superior Industries International Inc. said Monday it swung to a loss in its fiscal third quarter, blaming a plant closure and proxy battle for its weak results.
The Van Nuys company reported a net loss of $2.4 million (9 cents a share) for the quarter ended Sept. 28, compared with net income of $5.2 million (19 cents) in the same period a year earlier. Sales fell 8 percent to $176 million as shipments fell 11 percent to 2.6 million units.
Analysts on average expected net income of 19 cents on revenue of $189 million, according to Thomson Financial Network.
Included in the third quarter results were about $6.9 million in expenses, including those stemming from a recent proxy contest and the closure of the company’s Rogers, Arkansas manufacturing facility, which is being replaced by a $135 million plant in Chihuahua, Mexico, its forth in the area.
During the quarter, the company won a proxy battle over GAMCO Asset Management Inc., a New York fund run by billionaire Mario Gabelli. GAMCO, the company’s largest institutional shareholder, had proposed a slate of three new directors.
“The financial impact of our restructuring and other key actions is an investment in our future. We continue to make progress on two of our key initiatives – closure of the Rogers plant and start-up of our new manufacturing facility in Mexico,” said Don Stebbins, who joined Superior in May as its chief executive.
In a separate Monday announcement, Superior announced it signed agreements with J.P. Morgan Securities, JPMorgan Chase Bank and Wells Fargo Bank for a $100 million senior secured revolving credit facility. The facility will have a term of five years and contain an expansion feature providing for additional revolving credit or term loans in an amount up to $50 million.
The company anticipates using the facility for general corporate purposes and to take advantage of future opportunities to support profitable growth and create shareholder value.
Shares closed down 41 cents, or more than 2 percent, to $19.10 on the New York Stock Exchange.