Superior Announces Additional Actions to Navigate Uncertainty Created by COVID-19
April 02 2020 - 4:00PM
Business Wire
Superior Industries International, Inc. (NYSE:SUP), one
of the world’s leading aluminum wheel suppliers, today announced
actions aimed at further preserving financial flexibility to manage
through a possible prolonged lower production environment.
On March 23, 2020, Superior announced various actions in
response to the ongoing COVID-19 pandemic and shutdowns by global
automotive OEMs. The announced actions included measures to ensure
the health and safety of the Company’s employees, reduce production
costs, and strengthen Superior’s liquidity position. As previously
announced, Superior is suspending production at all its
manufacturing facilities. While there is not clear visibility as to
the length of the temporary shutdowns, the Company continues to
monitor OEM production and follow guidance provided by federal,
state, and local governments.
Further, Superior is also taking the following actions. The
extent and duration of these actions will be revisited based on how
the situation develops.
- Non-employee Board members will forgo all cash compensation
from April 1, 2020 through May 31, 2020.
- All executives will take a 20% reduction in base salary from
April 1, 2020 through May 31, 2020.
- All other salaried employees will take a 20% reduction in base
salary from April 1, 2020 through May 31, 2020 in accordance with
local laws, regulations, and labor agreements.
- Most of Superior’s manufacturing workforce will be temporarily
laid off in line with facility closures.
- Discretionary spending has been suspended.
- Superior has targeted reductions in working capital including
significantly reducing the purchase of all direct material.
- All non-essential capital investments have been placed on
hold.
- Additional measures have been implemented to protect the health
of employees including remote work, enhanced facility sanitation,
taking temperatures prior to entering facilities, among other
actions.
“In this time of uncertainty, we continue to prioritize the
health and safety of our employees around the globe while staying
laser focused on responding to a quickly evolving environment,”
said Majdi Abulaban, President and Chief Executive Officer of
Superior. “While Superior has a solid liquidity position of nearly
$300M, we are taking all appropriate actions to maintain our
financial position and remain nimble as we navigate these
extraordinary times. These decisions are difficult, but we believe
they are necessary in the face of an evolving production
outlook.”
About Superior Industries
Superior is one of the world’s leading aluminum wheel suppliers.
Superior’s team collaborates and partners with customers to design,
engineer and manufacture a wide variety of innovative and
high-quality products utilizing the latest lightweighting and
finishing technologies. Superior also maintains leading aftermarket
brands including ATS®, RIAL®, ALUTEC®, and ANZIO®. Headquartered in
Southfield, Michigan, Superior is listed on the New York Stock
Exchange. For more information, please visit www.supind.com.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all
statements that do not relate solely to historical or current facts
and can generally be identified by the use of future dates or words
such as “may,” “should,” “could,” “will,” “expects,” “expected,”
“seeks to,” “anticipates,” “plans,” “believes,” “estimates,”
“intends,” “outlook”, “predicts,” “projects,” “potential” or
“continue,” or the negative of such terms and other comparable
terminology. These statements also include, but are not limited to,
those related to Superior’s ability to withstand current market
conditions and the evolving impact of COVID-19, access to the
credit markets, Superior’s ability to continue to deliver in 2020
the positive financial trends it delivered in 2019, Superior’s
financial flexibility, trends in Superior’s financial results,
Superior’s ability to continue to enhance cash generation and pay
down debt, Superior’s competitive position, Superior’s ability to
continue to introduce market-leading product offerings with
differentiating technologies. Superior’s ability to reduce costs,
and re-align its business to changing production levels, and trends
in the aluminum wheel industry. These statements are based on
current expectations, estimates, and projections about Superior's
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve
risks, uncertainties, and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, risks, and
uncertainties discussed in Superior's Securities and Exchange
Commission filings and reports, including Superior's Annual Report
on Form 10-K, and other reports from time to time filed with the
Securities and Exchange Commission. You are cautioned not to unduly
rely on such forward-looking statements when evaluating the
information presented in this press release. Such forward-looking
statements speak only as of the date on which they are made, and
Superior does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005819/en/
Superior Investor Relations: (248) 234-7104 Troy Ford
Investor.Relations@supind.com
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