Zacks_Analysts' Blog : Superior Industries Exceeds Estimates - Analyst Blog

Consolidated sales more than doubled to $194.6 million from $80.9 million a year ago, driven by a 114% rise in unit shipments and a 14% hike in average selling prices. Sales were higher than the Zacks Consensus Estimate of $155 million.

Unit shipments to Ford Motor Co. (F) increased 68%, General Motors (MTLQQ) shot up 139%, Chrysler jumped 264% and international customers rose 115%.

Gross profit increased to $27.9 million, or 14.3% of net sales, compared with a negative gross profit of $12 million, or 14.9% of net sales in the second quarter of 2009. This was attributed to a rise in wheel production, which significantly affected the absorption of plant-fixed costs. The company's operating income was $20.6 million, or 10.6% of net sales, versus an operating loss $20.8 million or 25.7% of net sales in the second quarter of 2009.

Superior Industries had cash, cash equivalents and short-term investments of $143.4 million as of June 30, 2010, compared with $169.3 million in the year-ago period. The company has no bank or other interest bearing debt as of the above period.

Superior Industries has a product portfolio geared to suit current market trends. We appreciate the company's effort to maintain a debt-free balance sheet. We also appreciate the company's sale of its 50% ownership in the loss making Suoftec joint venture in June this year. The company is currently a Zacks #2 Rank ('Buy') in the short term.