Q3 2024 Superior Industries International Inc Earnings Call Transcript
Key Points
- Superior Industries International Inc (SUP) achieved a major milestone by refinancing its debt, attracting $520 million in new capital and extending debt maturities to 2028.
- The company reduced its total debt by $117 million, significantly strengthening its balance sheet and competitive standing.
- Adjusted EBITDA increased by 6% year over year, with margins expanding by 200 basis points sequentially and year over year.
- Superior Industries International Inc (SUP) has successfully negotiated recurring price increases with customers to recover inflationary costs, which are now reflected in more contracts going into 2025.
- The company has made progress in its European transformation, achieving sustained margin improvements despite lower production volumes.
- Value-added sales, adjusted for foreign exchange and deconsolidations, declined 2% year over year, underperforming industry production, which was down 6%.
- The company is facing a challenging demand environment, with industry production expected to decline by 6% in the second half of the year.
- Superior Industries International Inc (SUP) is lowering its full-year 2024 financial guidance due to lower anticipated production volumes and challenging OEM production environments.
- The company is targeting a 15% reduction in G&A and manufacturing overhead, resulting in a restructuring charge of approximately $9.5 million in the fourth quarter.
- Despite improvements, the company has not yet reached full utilization of its Polish operations, which is necessary to achieve its $190 million adjusted EBITDA run rate.
Thank you for standing by and welcome. My name is Albert and I will be your conference operator today. At this time. I would like to welcome everyone to the Superior Industries third-quarter, 2024 earnings call. We are joined this morning by Majdi Abulaban President and CEO; Dan Lee, Senior Vice President and CFO (Operator Instructions)
Thank you. I would now like to turn the call over to Dan Lee. Please go ahead.
Good morning and welcome to our third quarter, 2024 earnings conference call. During our call. This morning, we will be referring to our earnings presentation which along with our earnings release is available on the investor relations section of Superior's website. I am joined on the call by Mashi Ban our President and Chief Executive Officer before I turn the call over to Majdi, I remind everyone that any forward-looking statements contained in this presentation or commented on today are subject to the Safe Harbor provisions of the Private
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