19 NOVEMBER 2014Alcircle
Superior Industries face losses due to shutdown of Rogers factory
Edited by : AL CIRCLE
2 min read
Superior Industries International, the largest manufacturer of aluminium car and truck rims, has slipped into the red zone according to the Q3 results of 2014. The company reported a net loss of US$ 2.4 million due to expenses worth US$ 6.9 million dollars in the quarter caused largely by the shut down of Superior’s factory in Rogers, Arkansas.
The company saw a decline in the net sales by 8% slipping to $176.4 million in the third quarter while the unit shipments fell by 11% as compared to the corresponding period last year, falling from 2.9 million units to 2.6 million units this year.
Don Stebbins, who is the company’s president, CEO as well as board member since May 2014, says that the restructuring of the company is the cause of the apparent loss but it should instead be looked at as investment. The restructuring includes shutting down of the Rogers plant and starting a new manufacturing facility in Mexico. Resources are being gradually shifted from the Roger plant to other Superior manufacturing unit and the closure for the plant is on schedule due to deliver its last production in mid-December. The transition is expected to be smooth for the customers and this closure is going to save the company approximately $15 million YOY.
The company saw a decline in the net sales by 8% slipping to $176.4 million in the third quarter while the unit shipments fell by 11% as compared to the corresponding period last year, falling from 2.9 million units to 2.6 million units this year.
Don Stebbins, who is the company’s president, CEO as well as board member since May 2014, says that the restructuring of the company is the cause of the apparent loss but it should instead be looked at as investment. The restructuring includes shutting down of the Rogers plant and starting a new manufacturing facility in Mexico. Resources are being gradually shifted from the Roger plant to other Superior manufacturing unit and the closure for the plant is on schedule due to deliver its last production in mid-December. The transition is expected to be smooth for the customers and this closure is going to save the company approximately $15 million YOY.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
CRL-U.S. Aluminum receives Glass Magazine's top metal company recognition
Next articleAluminium foam used to make high speed train cab
Grow with
AL Circle
