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NEW YORK - Shares of Superior Industries International Inc. (NYSE:SUP) plummeted over 50% on Monday after the aluminum wheel supplier reported a wider-than-expected first quarter loss and withdrew its full-year guidance due to macroeconomic uncertainty.
Superior posted a Q1 net loss of $12.9 million, or $0.92 per share, compared to a loss of $32.7 million, or $1.52 per share, in the same period last year. Analysts had expected a smaller loss of $0.37 per share.
Revenue rose marginally to $321.6 million from $316.3 million a year ago, slightly below estimates of $322.74 million. Value-added sales, which exclude the pass-through costs of aluminum, declined 2.1% to $168.5 million.
The company said it is withdrawing its fiscal 2025 outlook due to "uncertainties related to the current macroeconomic environment as well as the lost volume from certain customers." Superior also disclosed it recently received notifications from some large North American automakers of their intent to resource all outstanding purchase orders to another supplier.
"Despite a challenging macro environment, our value-added sales outperformed the market driven by our leading portfolio of products," said CEO Majdi Abulaban. However, he noted the sudden loss of volumes has created a "short-term liquidity constraint."
To address this, Superior has entered into a commitment letter with term loan lenders for up to $70 million in additional loans. The company is also in discussions with revolving lenders regarding financial covenant relief and is pursuing cost reduction initiatives.
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