16
Superior Industries International NYSE: SUP Fourth Quarter 2012 Earnings Conference Call March 1, 2013

Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

Superior Industries International

NYSE: SUP

Fourth Quarter 2012Earnings Conference Call

March 1, 2013

Page 2: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 2

Forward Looking Statements

Any forwardAny forwardAny forwardAny forward----looking statements made in this webcast or contained in this looking statements made in this webcast or contained in this looking statements made in this webcast or contained in this looking statements made in this webcast or contained in this presentation are subject to the safe harbor provisions of the Prpresentation are subject to the safe harbor provisions of the Prpresentation are subject to the safe harbor provisions of the Prpresentation are subject to the safe harbor provisions of the Private ivate ivate ivate Securities Litigation Reform Act of 1995. Actual results could Securities Litigation Reform Act of 1995. Actual results could Securities Litigation Reform Act of 1995. Actual results could Securities Litigation Reform Act of 1995. Actual results could differ differ differ differ materially because of issues and uncertainties that need to be cmaterially because of issues and uncertainties that need to be cmaterially because of issues and uncertainties that need to be cmaterially because of issues and uncertainties that need to be considered in onsidered in onsidered in onsidered in evaluating our financial outlook. We assume no obligation to upevaluating our financial outlook. We assume no obligation to upevaluating our financial outlook. We assume no obligation to upevaluating our financial outlook. We assume no obligation to update publicly date publicly date publicly date publicly any forwardany forwardany forwardany forward----looking statements.looking statements.looking statements.looking statements. Conditions, issues and uncertainties that Conditions, issues and uncertainties that Conditions, issues and uncertainties that Conditions, issues and uncertainties that may be discussed from timemay be discussed from timemay be discussed from timemay be discussed from time----totototo----time include, but are not limited to, global time include, but are not limited to, global time include, but are not limited to, global time include, but are not limited to, global competition, product pricing and mix, domestic and foreign markecompetition, product pricing and mix, domestic and foreign markecompetition, product pricing and mix, domestic and foreign markecompetition, product pricing and mix, domestic and foreign market demand, t demand, t demand, t demand, commodity prices including metal, energy and foreign currency, commodity prices including metal, energy and foreign currency, commodity prices including metal, energy and foreign currency, commodity prices including metal, energy and foreign currency, manufacturing capacity including plans to construct a new manufamanufacturing capacity including plans to construct a new manufamanufacturing capacity including plans to construct a new manufamanufacturing capacity including plans to construct a new manufacturing cturing cturing cturing facility, productivity, capital investment, operating and manuffacility, productivity, capital investment, operating and manuffacility, productivity, capital investment, operating and manuffacility, productivity, capital investment, operating and manufacturing acturing acturing acturing challenges, and our strategic and operating plans. Please referchallenges, and our strategic and operating plans. Please referchallenges, and our strategic and operating plans. Please referchallenges, and our strategic and operating plans. Please refer to the to the to the to the companycompanycompanycompany’’’’s SEC filings, including our 2012 Annual Report on Form 10s SEC filings, including our 2012 Annual Report on Form 10s SEC filings, including our 2012 Annual Report on Form 10s SEC filings, including our 2012 Annual Report on Form 10----K, for K, for K, for K, for a complete discussion on forwarda complete discussion on forwarda complete discussion on forwarda complete discussion on forward----looking statements and risk factors that looking statements and risk factors that looking statements and risk factors that looking statements and risk factors that may cause actual events to differ from these forwardmay cause actual events to differ from these forwardmay cause actual events to differ from these forwardmay cause actual events to differ from these forward----looking statements.looking statements.looking statements.looking statements.

Page 3: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Wheels in Millions

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Superior Shipped Units

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Vehicles in Millions

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

North American Light Vehicle Production

Page 3

North American Vehicle Production vs. Superior Shipments

Positive YOY industry comparisons continued for 2012, with 4Q12 at +11% and total year at +18%. SUP share was down about 4 pts.

Source: Wards Automotive Group

Includes Passenger Cars, Light Trucks and SUVsSource: Superior Internal data

NA Light Vehicle Superior

Description (all units in millions) Production Shipments

- Q4 total units: 2011 3.43 3.152012 3.80 3.162012 vs. 2011 +10.8% +0%

- Dec. YTD total units: 2011 13.09 11.712012 15.38 12.492012 vs. 2011 +17.5% +6.6%

Page 4: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 4

NA Vehicle Production – Year-over-Year Comparison

In 2012 market share shifted back to the international brands.

� Our largest customers, Ford and GM, lagged the market in 2012 whOur largest customers, Ford and GM, lagged the market in 2012 whOur largest customers, Ford and GM, lagged the market in 2012 whOur largest customers, Ford and GM, lagged the market in 2012 which contributed to our overall market share lossich contributed to our overall market share lossich contributed to our overall market share lossich contributed to our overall market share loss

– Ford +5% Ford +5% Ford +5% Ford +5% ---- Spread evenly across light trucks and pass cars Spread evenly across light trucks and pass cars Spread evenly across light trucks and pass cars Spread evenly across light trucks and pass cars ---- FFFF----Series and Explorer and Escape with nice gains. Series and Explorer and Escape with nice gains. Series and Explorer and Escape with nice gains. Series and Explorer and Escape with nice gains. Focus, Mustang and Taurus higher along with new CFocus, Mustang and Taurus higher along with new CFocus, Mustang and Taurus higher along with new CFocus, Mustang and Taurus higher along with new C----Max model.Max model.Max model.Max model.

– GM +5% GM +5% GM +5% GM +5% –––– Gains stronger in pass car platforms 8% Gains stronger in pass car platforms 8% Gains stronger in pass car platforms 8% Gains stronger in pass car platforms 8% ---- Chevy Aveo, Buick Verano and Cadillac ATS & XTS, light trucks Chevy Aveo, Buick Verano and Cadillac ATS & XTS, light trucks Chevy Aveo, Buick Verano and Cadillac ATS & XTS, light trucks Chevy Aveo, Buick Verano and Cadillac ATS & XTS, light trucks up 3% strong 4Q12 GMT900 productionup 3% strong 4Q12 GMT900 productionup 3% strong 4Q12 GMT900 productionup 3% strong 4Q12 GMT900 production

� Chrysler maintained share with strong year over year growth. Chrysler maintained share with strong year over year growth. Chrysler maintained share with strong year over year growth. Chrysler maintained share with strong year over year growth.

– Chrysler +19% Chrysler +19% Chrysler +19% Chrysler +19% ---- led by pass car programs led by pass car programs led by pass car programs led by pass car programs –––– 200/300, Avenger, Dart and Fiat 500 programs all grew significa200/300, Avenger, Dart and Fiat 500 programs all grew significa200/300, Avenger, Dart and Fiat 500 programs all grew significa200/300, Avenger, Dart and Fiat 500 programs all grew significantlyntlyntlyntly

� Production for International Brands increased 31% in 2012Production for International Brands increased 31% in 2012Production for International Brands increased 31% in 2012Production for International Brands increased 31% in 2012

– Toyota + 41% Toyota + 41% Toyota + 41% Toyota + 41% ---- Up on most programs compared to 2011 which was impacted by the Up on most programs compared to 2011 which was impacted by the Up on most programs compared to 2011 which was impacted by the Up on most programs compared to 2011 which was impacted by the TsunamiTsunamiTsunamiTsunami– VW + 34% VW + 34% VW + 34% VW + 34% ---- Led by Passat and reLed by Passat and reLed by Passat and reLed by Passat and re----introduction of Beetleintroduction of Beetleintroduction of Beetleintroduction of Beetle– Nissan + 13% Nissan + 13% Nissan + 13% Nissan + 13% ---- Light truck growth strong +38%, pass car +7%Light truck growth strong +38%, pass car +7%Light truck growth strong +38%, pass car +7%Light truck growth strong +38%, pass car +7%

1,726 1,807 1,914 1,9661,488 1,703

688 897256 352

1,2521,574

922 960 1,175 1,269

502 657

568 879

914 976

1,682

2,340 2,648 2,767

3,089 3,235

1,990 2,360

1,256

1,776

1,170 1,328

2,933

3,913

4%

5%

19%

41%

13%

33%

0

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012

Ford General Motors Chrysler Toyota Nissan Other International

(in th

ousa

nds)

Light Trucks Passenger CarsTotal YOY Market Change of 17.5%

Page 5: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 5

Superior Shipments – Year-over-Year Comparison

Lower market share reflects capacity constraints and customer mix.

� Strong volume growth at Ford and Chrysler Strong volume growth at Ford and Chrysler Strong volume growth at Ford and Chrysler Strong volume growth at Ford and Chrysler –––– grew share at both these large customers in 2012grew share at both these large customers in 2012grew share at both these large customers in 2012grew share at both these large customers in 2012

– Ford + 18% Ford + 18% Ford + 18% Ford + 18% ---- Very strong growth in light trucks Very strong growth in light trucks Very strong growth in light trucks Very strong growth in light trucks –––– Escape, FEscape, FEscape, FEscape, F----Series, Explorer, Flex and Edge Series, Explorer, Flex and Edge Series, Explorer, Flex and Edge Series, Explorer, Flex and Edge –––– passenger cars passenger cars passenger cars passenger cars down down down down ----22% on Fusion22% on Fusion22% on Fusion22% on Fusion

– Chrysler + 17% Chrysler + 17% Chrysler + 17% Chrysler + 17% ---- Light truck gains Light truck gains Light truck gains Light truck gains –––– Jeep Compass and Grand Cherokee, Journey, Town and Country, CarJeep Compass and Grand Cherokee, Journey, Town and Country, CarJeep Compass and Grand Cherokee, Journey, Town and Country, CarJeep Compass and Grand Cherokee, Journey, Town and Country, Caravan avan avan avan and the Ram Truckand the Ram Truckand the Ram Truckand the Ram Truck

� Shipments to GM were down Shipments to GM were down Shipments to GM were down Shipments to GM were down ----6%6%6%6%

– Overall shipment decline reflects loss of Malibu Overall shipment decline reflects loss of Malibu Overall shipment decline reflects loss of Malibu Overall shipment decline reflects loss of Malibu –––– some gains on Impala and Voltsome gains on Impala and Voltsome gains on Impala and Voltsome gains on Impala and Volt– GMT 900 was up 5% as platform nears its changeoverGMT 900 was up 5% as platform nears its changeoverGMT 900 was up 5% as platform nears its changeoverGMT 900 was up 5% as platform nears its changeover

� InternationalInternationalInternationalInternational

– Toyota +26% on strong light truck and passenger car shipments Toyota +26% on strong light truck and passenger car shipments Toyota +26% on strong light truck and passenger car shipments Toyota +26% on strong light truck and passenger car shipments –––– Increases on Highlander, Sienna, Venza and Increases on Highlander, Sienna, Venza and Increases on Highlander, Sienna, Venza and Increases on Highlander, Sienna, Venza and Camry Camry Camry Camry

– BMW +26% BMW +26% BMW +26% BMW +26% –––– on increased X3 shipmentson increased X3 shipmentson increased X3 shipmentson increased X3 shipments– Nissan Nissan Nissan Nissan –––– 11% 11% 11% 11% –––– Down on Altima (new program launching, volume should increase iDown on Altima (new program launching, volume should increase iDown on Altima (new program launching, volume should increase iDown on Altima (new program launching, volume should increase in 2Q13) and Sentran 2Q13) and Sentran 2Q13) and Sentran 2Q13) and Sentra

2,768

3,518

2,712 2,722

1,208 1,415

680 832178 145 316 336

1,184

1,127

797 580

86 105

257 347

1,077 972 449 393

3,952

4,645

3,509 3,302

1,294 1,519

937 1,179 1,255 1,117

765 730

18%

(6%)

17% 26% (11%)

(5%)

0

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012

Ford General Motors Chrysler Toyota Nissan Other International

(in th

ousa

nds)

Light Trucks Passenger CarsTotal YOY Change in Shipments 6.6%

Page 6: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

NA Production / Superior – Sequential Quarter Comparison

� Ford led the pack with the strongest gains while the other OEMFord led the pack with the strongest gains while the other OEMFord led the pack with the strongest gains while the other OEMFord led the pack with the strongest gains while the other OEM’’’’s posted modest improvementss posted modest improvementss posted modest improvementss posted modest improvements

– Ford +9%Ford +9%Ford +9%Ford +9%---- mostly on Fusion and Escapemostly on Fusion and Escapemostly on Fusion and Escapemostly on Fusion and Escape– Chrysler +5% Chrysler +5% Chrysler +5% Chrysler +5% ---- on strong Dodge Ram and Chrysler 300 productionon strong Dodge Ram and Chrysler 300 productionon strong Dodge Ram and Chrysler 300 productionon strong Dodge Ram and Chrysler 300 production– GM + 2% GM + 2% GM + 2% GM + 2% ---- mostly on GMT 900 trucks and Cadillac ATS increasesmostly on GMT 900 trucks and Cadillac ATS increasesmostly on GMT 900 trucks and Cadillac ATS increasesmostly on GMT 900 trucks and Cadillac ATS increases– International brands mostly flat as strong share gain flattens oInternational brands mostly flat as strong share gain flattens oInternational brands mostly flat as strong share gain flattens oInternational brands mostly flat as strong share gain flattens out in 4Q12 ut in 4Q12 ut in 4Q12 ut in 4Q12

� Sequential shipments increased 7% on stronger light truck shipmeSequential shipments increased 7% on stronger light truck shipmeSequential shipments increased 7% on stronger light truck shipmeSequential shipments increased 7% on stronger light truck shipments nts nts nts –––– passenger cars were passenger cars were passenger cars were passenger cars were flatflatflatflat

– Ford +5% Ford +5% Ford +5% Ford +5% ---- on Explorer, Mustang and Tauruson Explorer, Mustang and Tauruson Explorer, Mustang and Tauruson Explorer, Mustang and Taurus– Chrysler +16% Chrysler +16% Chrysler +16% Chrysler +16% ---- mostly on Dodge Ram truck rampmostly on Dodge Ram truck rampmostly on Dodge Ram truck rampmostly on Dodge Ram truck ramp----upupupup– GM +11% GM +11% GM +11% GM +11% ---- light trucks up 14% on GMT 900 ramplight trucks up 14% on GMT 900 ramplight trucks up 14% on GMT 900 ramplight trucks up 14% on GMT 900 ramp----up, passenger cars (11%) up, passenger cars (11%) up, passenger cars (11%) up, passenger cars (11%) ---- mostly due to the mostly due to the mostly due to the mostly due to the

loss of the Malibu programloss of the Malibu programloss of the Malibu programloss of the Malibu program– International shipments flat with market International shipments flat with market International shipments flat with market International shipments flat with market ---- Nissan (19%) on Sentra and Versa Nissan (19%) on Sentra and Versa Nissan (19%) on Sentra and Versa Nissan (19%) on Sentra and Versa ---- Toyota +17% on Toyota +17% on Toyota +17% on Toyota +17% on

Avalon, Sienna and HighlanderAvalon, Sienna and HighlanderAvalon, Sienna and HighlanderAvalon, Sienna and Highlander

Superior’s shipments were up compared to the market on a sequential quarterly basis – slight increase in market share.

NA Light Vehicle Superior

Description (all units in millions) Production Shipments

- Q3 total units: 2012 3.66 2.95

- Q4 total units: 2012 3.80 3.16

- Q3 2012 vs. Q4 2012 +3.8% +7.1%

Page 6

MarketMarketMarketMarket

SuperiorSuperiorSuperiorSuperior

Page 7: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 7

2012 Significant Highlights - Sales

Volume was flat in Q4 but up significantly for the full year. Lower aluminum prices and FX offset the impact of the volume increase.Price/Mix turned favorable in 4Q12.

Q4 2012 Q4 2011 Amount Percent YTD 2012 YTD 2011 Amount Percent

Volume (Wheels Shipped) 3.2 3.2 0.0 0.0% 12.5 11.7 0.8 6.6%

Net Sales:

Total $210.0 $216.8 ($6.8) -3% $821.5 $822.2 ($0.7) 0%

Volume $0.0 $50.4

Project Development ($0.4) ($0.1)

Sales Adjustments ($1.2) ($4.0)

Clad Upcharge ($0.3) $3.3

Price / Mix ($4.9) ($50.3)

Aluminum Content - Price ($15.1) ($49.6)

Aluminum Content - Weight $2.9 $5.8

FX Impact $4.0 ($5.3)

Price / Mix Other $3.3 ($1.2)

Variance

($4.9)

($12.2)

($50.3)

($43.8)

Millions Variance Millions

Page 8: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 8

2012 Significant Highlights – Gross Profit

Gross Margin decreased $6.5M on higher volumes. U.S. U.S. U.S. U.S. operating challenges continue to pressure margins.operating challenges continue to pressure margins.operating challenges continue to pressure margins.operating challenges continue to pressure margins.

� Mix / RateMix / RateMix / RateMix / Rate ---- negative for total year but negative for total year but negative for total year but negative for total year but turned positive for 4Q12turned positive for 4Q12turned positive for 4Q12turned positive for 4Q12

� FX ImpactFX ImpactFX ImpactFX Impact ---- Average Peso rate in 2012 Average Peso rate in 2012 Average Peso rate in 2012 Average Peso rate in 2012 was 6.3% weaker that the average rate in was 6.3% weaker that the average rate in was 6.3% weaker that the average rate in was 6.3% weaker that the average rate in 2011 2011 2011 2011

� Aluminum TimingAluminum TimingAluminum TimingAluminum Timing ---- Timing difference Timing difference Timing difference Timing difference between our commercial aluminum pass between our commercial aluminum pass between our commercial aluminum pass between our commercial aluminum pass through agreements and cost incurredthrough agreements and cost incurredthrough agreements and cost incurredthrough agreements and cost incurred

� Plant PerformancePlant PerformancePlant PerformancePlant Performance ---- Largely labor, fringe Largely labor, fringe Largely labor, fringe Largely labor, fringe and other operating expenses related to and other operating expenses related to and other operating expenses related to and other operating expenses related to the Midwest facilities as well as the Midwest facilities as well as the Midwest facilities as well as the Midwest facilities as well as increased replacement tooling expenseincreased replacement tooling expenseincreased replacement tooling expenseincreased replacement tooling expense

� Shutdown ExpenseShutdown ExpenseShutdown ExpenseShutdown Expense ---- More shutdown More shutdown More shutdown More shutdown days and expense in 2012days and expense in 2012days and expense in 2012days and expense in 2012

� Repairs and MaintenanceRepairs and MaintenanceRepairs and MaintenanceRepairs and Maintenance ---- Increased Increased Increased Increased repairs and maintenance expense mostly repairs and maintenance expense mostly repairs and maintenance expense mostly repairs and maintenance expense mostly related to the Midwest facilitiesrelated to the Midwest facilitiesrelated to the Midwest facilitiesrelated to the Midwest facilities

� Consumption Tax AdjustmentConsumption Tax AdjustmentConsumption Tax AdjustmentConsumption Tax Adjustment ---- $3.5 $3.5 $3.5 $3.5 million nonmillion nonmillion nonmillion non----cash benefit from the release cash benefit from the release cash benefit from the release cash benefit from the release of a consumption tax reserve established of a consumption tax reserve established of a consumption tax reserve established of a consumption tax reserve established prior to 2011 prior to 2011 prior to 2011 prior to 2011

$67.1

$60.5

$7.1 -$3.7

-$3.4

$1.1$1.6 -$5.7

-$1.3-$3.9 $3.5 -$1.8

$45

$50

$55

$60

$65

$70

$75

$80

2011 Gross Profit

Volume

Mix / Rate

FX Impact

Depreciation

Aluminum Timing

Plant performance

Shutdown

Expense

Repairs and

Maintenance

Consumption Tax

Adjustment

Other

2012 Gross Profit

Gross Margin $ in Millions

Page 9: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 9

2012 Income Statements – Other Comments

� SG&A expense increased $1.2M in 4Q12 and $1.8M for the full yearSG&A expense increased $1.2M in 4Q12 and $1.8M for the full yearSG&A expense increased $1.2M in 4Q12 and $1.8M for the full yearSG&A expense increased $1.2M in 4Q12 and $1.8M for the full year compared to compared to compared to compared to 2011201120112011

– 4Q12 = $7.4M 4Q12 = $7.4M 4Q12 = $7.4M 4Q12 = $7.4M –––– 4Q11 = $6.2M4Q11 = $6.2M4Q11 = $6.2M4Q11 = $6.2M

– FY12 = $27.7M FY12 = $27.7M FY12 = $27.7M FY12 = $27.7M –––– FY11 = $25.9MFY11 = $25.9MFY11 = $25.9MFY11 = $25.9M

– Increases primarily reflects $1.5M benefit for deferred compensaIncreases primarily reflects $1.5M benefit for deferred compensaIncreases primarily reflects $1.5M benefit for deferred compensaIncreases primarily reflects $1.5M benefit for deferred compensation accrual tion accrual tion accrual tion accrual reduction in 4Q11; higher professional services expense in 2012reduction in 4Q11; higher professional services expense in 2012reduction in 4Q11; higher professional services expense in 2012reduction in 4Q11; higher professional services expense in 2012

� FX loss of $0.5M in 4Q12 compared to a gain of $.1M in 4Q1. FullFX loss of $0.5M in 4Q12 compared to a gain of $.1M in 4Q1. FullFX loss of $0.5M in 4Q12 compared to a gain of $.1M in 4Q1. FullFX loss of $0.5M in 4Q12 compared to a gain of $.1M in 4Q1. Full year 2012 FX year 2012 FX year 2012 FX year 2012 FX gain of $.1M compared to a loss of $1M in 2011gain of $.1M compared to a loss of $1M in 2011gain of $.1M compared to a loss of $1M in 2011gain of $.1M compared to a loss of $1M in 2011

– The Peso strengthened 6% in 2012 compared to a 12% devaluation iThe Peso strengthened 6% in 2012 compared to a 12% devaluation iThe Peso strengthened 6% in 2012 compared to a 12% devaluation iThe Peso strengthened 6% in 2012 compared to a 12% devaluation in 2011n 2011n 2011n 2011

� Income taxIncome taxIncome taxIncome tax swung to $3.6M swung to $3.6M swung to $3.6M swung to $3.6M expenseexpenseexpenseexpense for 2012 from $25.2M of for 2012 from $25.2M of for 2012 from $25.2M of for 2012 from $25.2M of benefitbenefitbenefitbenefit in 2011. in 2011. in 2011. in 2011. Effective income tax rates for both 2012 and 2011 affected by a Effective income tax rates for both 2012 and 2011 affected by a Effective income tax rates for both 2012 and 2011 affected by a Effective income tax rates for both 2012 and 2011 affected by a variety of factors, variety of factors, variety of factors, variety of factors, most notably:most notably:most notably:most notably:

– 2012 2012 2012 2012 ---- Net $10.2M benefit from reversal of net liability for uncertainNet $10.2M benefit from reversal of net liability for uncertainNet $10.2M benefit from reversal of net liability for uncertainNet $10.2M benefit from reversal of net liability for uncertain tax tax tax tax positions, offset partially by $3.4M increase in valuation allowpositions, offset partially by $3.4M increase in valuation allowpositions, offset partially by $3.4M increase in valuation allowpositions, offset partially by $3.4M increase in valuation allowances related to ances related to ances related to ances related to state deferred tax assetsstate deferred tax assetsstate deferred tax assetsstate deferred tax assets

– 2011 2011 2011 2011 ---- Release of $42.3 million of valuation allowances against deferrRelease of $42.3 million of valuation allowances against deferrRelease of $42.3 million of valuation allowances against deferrRelease of $42.3 million of valuation allowances against deferred tax ed tax ed tax ed tax assets established in prior yearsassets established in prior yearsassets established in prior yearsassets established in prior years

Page 10: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 10

Balance Sheet & Cash Flow Comments

� Cash and shortCash and shortCash and shortCash and short----term investments increased $15M during 2012 to end term investments increased $15M during 2012 to end term investments increased $15M during 2012 to end term investments increased $15M during 2012 to end the year at $207M. Accelerated 2013 dividend payment into 2012.the year at $207M. Accelerated 2013 dividend payment into 2012.the year at $207M. Accelerated 2013 dividend payment into 2012.the year at $207M. Accelerated 2013 dividend payment into 2012.

� Accounts Receivable decreased $21M compared to year end 2011, Accounts Receivable decreased $21M compared to year end 2011, Accounts Receivable decreased $21M compared to year end 2011, Accounts Receivable decreased $21M compared to year end 2011, primarily due to lower aluminum prices and a longer December primarily due to lower aluminum prices and a longer December primarily due to lower aluminum prices and a longer December primarily due to lower aluminum prices and a longer December shutdown in 2012shutdown in 2012shutdown in 2012shutdown in 2012

� Net inventory increased $5.0M compared to year end 2011Net inventory increased $5.0M compared to year end 2011Net inventory increased $5.0M compared to year end 2011Net inventory increased $5.0M compared to year end 2011

– Finished goods and WIP units have increased to buffer productionFinished goods and WIP units have increased to buffer productionFinished goods and WIP units have increased to buffer productionFinished goods and WIP units have increased to buffer production / / / / demand imbalance. demand imbalance. demand imbalance. demand imbalance.

– 2012 reclassification of MRO inventory to 2012 reclassification of MRO inventory to 2012 reclassification of MRO inventory to 2012 reclassification of MRO inventory to ““““Other AssetsOther AssetsOther AssetsOther Assets”””” and lower and lower and lower and lower aluminum prices mask increase in finished goods and WIP units aluminum prices mask increase in finished goods and WIP units aluminum prices mask increase in finished goods and WIP units aluminum prices mask increase in finished goods and WIP units

� Capital expenditures = $23M for 2012, more than oneCapital expenditures = $23M for 2012, more than oneCapital expenditures = $23M for 2012, more than oneCapital expenditures = $23M for 2012, more than one----third higher than third higher than third higher than third higher than in 2011in 2011in 2011in 2011

– Pace of spending for existing facilities currently expected to cPace of spending for existing facilities currently expected to cPace of spending for existing facilities currently expected to cPace of spending for existing facilities currently expected to continue ontinue ontinue ontinue increasingincreasingincreasingincreasing

– Investments being made in process improvements, equipment reliabInvestments being made in process improvements, equipment reliabInvestments being made in process improvements, equipment reliabInvestments being made in process improvements, equipment reliability ility ility ility and some debottlenecking and some debottlenecking and some debottlenecking and some debottlenecking

� Working capital and current ratio remained strong at $338M and 6Working capital and current ratio remained strong at $338M and 6Working capital and current ratio remained strong at $338M and 6Working capital and current ratio remained strong at $338M and 6.1:1 .1:1 .1:1 .1:1 at the end of 2012at the end of 2012at the end of 2012at the end of 2012

Page 11: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 11

4th Quarter Income StatementsUnaudited

(US$ in Thousands, except for per share amounts)

Q4 2012 Q4 2011 Amount Percent

Unit Shipments 3,155,735 3,155,016 719 0%

Total Revenues 210,019$ 216,847$ (6,828)$ -3%

Gross Profit 12,763$ 18,061$ (5,298)$ -29%

% of Revenues 6.1% 8.3% -2.3%

SG&A Expenses (7,392) (6,235) (1,157) 19%

% of Revenues -3.5% -2.9% -0.7%

Impairment Costs - (997) 997 -100%

Operating Income 5,371 10,829 (5,458) -50%

% of Revenues 2.6% 5.0% -2.4%

Interest Income, net 379 206 173 84%

Foreign Exchange Gain (Loss) (477) 92 (569) -618%

Miscellaneous Inc/Exp 31 863 (832) -96%

Income Before Income Taxes and

Equity Earnings of JVs 5,305 11,990 (6,685) -56%

Income Tax (Provision) Benefit (2,617) 28,197 (30,814) -109%

Equity Income (Loss) - JVs - - -

Net Income 2,688$ 40,187$ (37,499) -93%

Income Per Share - Diluted 0.10$ 1.48$ (1.38)$

(Unfavorable)

Favorable

Page 12: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 12

December Year-to-Date Income StatementsUnaudited

(US$ in Thousands, except for per share amounts) YTD YTD

December 2012

December

2011 Amount Percent

Unit Shipments 12,490,609 11,712,152 778,457 7%

Total Revenues 821,454$ 822,172$ (718)$ 0%

Gross Profit 60,607$ 67,060$ (6,453)$ -10%

% of Revenues 7.4% 8.2% -0.8%

SG&A Expenses (27,727) (25,888) (1,839) 7%

% of Revenues -3.4% -3.1% -0.2%

Impairment Costs - (1,337) 1,337

Operating Income 32,880 39,835 (6,955) -17%

% of Revenues 4.0% 4.8% -0.8%

Interest Income, net 1,252 1,101 151 14%

Foreign Exchange Gain (Loss) 91 (924) 1,015 -110%

Miscellaneous Inc/Exp 266 1,914 (1,648) -86%

Income Before Income Taxes and

Equity Earnings of JVs 34,489 41,926 (7,437) -18%

Income Tax (Provision) Benefit (3,598) 25,243 (28,841) -114%

Equity Income (Loss) - JVs - - -

Net Income 30,891$ 67,169$ (36,278) -54%

Income Per Share - Diluted 1.13$ 2.46$ (1.33)$

Favorable

(Unfavorable)

Page 13: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 13

Summary Balance SheetsUnaudited

* See comments regarding a 3Q12 reclassification of MRO inventory from “Inventory” to “Other Assets”.

(US$ in Millions)

December December Increase

ASSETS 2012 2011 (Decrease)

Cash & Equivalents 203.4$ 187.8$ 15.6$

S-T Investments 4.0 5.1 (1.1)

Accounts Receivable, net 98.5 119.9 (21.4)

Inventories, net 71.9 66.9 5.0

Prepaid Aluminum 10.6 11.7 (1.1)

Other Current Assets 16.5 12.9 3.6

Total Current Assets 404.9 404.3 0.6

Property, Plant & Equipment 147.5 145.7 1.8

Investments 4.6 4.7 (0.1)

Other Assets 42.6 38.5 4.1 Total Assets 599.6$ 593.2$ 6.4$

LIABILITIES & EQUITY

Accounts Payable 32.4$ 29.0$ 3.4$

Other Current Liabilities 34.2 39.5 (5.3)

Total Current Liabilities 66.6 68.5 (1.9)

Non-Current Liabilities 66.1 64.2 1.9

Shareholders' Equity 466.9 460.5 6.4 Total Liabilities & Equity 599.6$ 593.2$ 6.4$

Page 14: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 14

Summary Cash Flow StatementsUnaudited

December

2012

December

2011 Increase

Actual Actual (Decrease)

Net Income (Loss) 30.9$ 67.2$ (36.3)$

Depreciation 26.4 27.5 (1.1)

Deferred income taxes and (FIN 48) (13.5) (35.2) 21.7

Accounts Receivable 21.4 (11.0) 32.4

Inventories (8.3) 4.6 (12.9)

Prepaid Aluminum 1.1 15.1 (14.0)

Accounts Payable 2.7 (0.7) 3.4

Other Operations Related Items 5.1 0.2 4.9

Cash Flow from Operations 65.8 67.7 (1.9)

Cash Dividends (34.9) (17.4) (17.5)

Capital Expenditures (23.1) (17.0) (6.1)

Proceeds from Exercise of Stock Options 1.5 4.8 (3.3)

Net Change in Maturing Investments 1.1 16.8 (15.7)

All Other 5.2 3.2 2.0

Net Increase (Decrease) 15.6 58.2 (42.6)

Cash - Beginning 187.8 129.6

Cash - Ending 203.4$ 187.8$

Page 15: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 15

New Mexican Manufacturing Facility

� Expand on SuperiorExpand on SuperiorExpand on SuperiorExpand on Superior’’’’s worlds worlds worlds world----class operations to add shareholder valueclass operations to add shareholder valueclass operations to add shareholder valueclass operations to add shareholder value

� Position us to meet growing demand across North AmericaPosition us to meet growing demand across North AmericaPosition us to meet growing demand across North AmericaPosition us to meet growing demand across North America

� Site selection has not been determined, however, architectural pSite selection has not been determined, however, architectural pSite selection has not been determined, however, architectural pSite selection has not been determined, however, architectural plans lans lans lans currently are underway currently are underway currently are underway currently are underway

� Investment of approximately $125 million to $135 millionInvestment of approximately $125 million to $135 millionInvestment of approximately $125 million to $135 millionInvestment of approximately $125 million to $135 million

� Initial capacity to produce between 2 million and 2.5 million whInitial capacity to produce between 2 million and 2.5 million whInitial capacity to produce between 2 million and 2.5 million whInitial capacity to produce between 2 million and 2.5 million wheels a eels a eels a eels a year year year year

� Groundbreaking targeted for around the middle of 2013 and compleGroundbreaking targeted for around the middle of 2013 and compleGroundbreaking targeted for around the middle of 2013 and compleGroundbreaking targeted for around the middle of 2013 and completion tion tion tion of construction anticipated about two years laterof construction anticipated about two years laterof construction anticipated about two years laterof construction anticipated about two years later

� Existing liquidity is adequate to fund the project, but the compExisting liquidity is adequate to fund the project, but the compExisting liquidity is adequate to fund the project, but the compExisting liquidity is adequate to fund the project, but the company is any is any is any is evaluating credit options. evaluating credit options. evaluating credit options. evaluating credit options.

Page 16: Fourth Quarter 2012 Earnings Conference Call March 1, 2013up 3% strong 4Q12 GMT900 production Chrysler maintained share with strong year over year growth. – Chrysler +19% Chrysler

www.supind.com

Page 16

Conclusion

� NA auto production continues to remain strong with 18% gains NA auto production continues to remain strong with 18% gains NA auto production continues to remain strong with 18% gains NA auto production continues to remain strong with 18% gains compared to 2011compared to 2011compared to 2011compared to 2011

� SuperiorSuperiorSuperiorSuperior’’’’s market share decline reflects a variety of factors including s market share decline reflects a variety of factors including s market share decline reflects a variety of factors including s market share decline reflects a variety of factors including customer mix, program timing and more selective quotingcustomer mix, program timing and more selective quotingcustomer mix, program timing and more selective quotingcustomer mix, program timing and more selective quoting

� Plant utilization rates remained high in 4Q12, although necessarPlant utilization rates remained high in 4Q12, although necessarPlant utilization rates remained high in 4Q12, although necessarPlant utilization rates remained high in 4Q12, although necessary y y y maintenance shutdowns were taken at most facilitiesmaintenance shutdowns were taken at most facilitiesmaintenance shutdowns were taken at most facilitiesmaintenance shutdowns were taken at most facilities

� Mexico operations continue to run smoothly, while U.S. challengeMexico operations continue to run smoothly, while U.S. challengeMexico operations continue to run smoothly, while U.S. challengeMexico operations continue to run smoothly, while U.S. challenges s s s continue to pressure marginscontinue to pressure marginscontinue to pressure marginscontinue to pressure margins

� New wheel plant will expand on our success in Mexico and help toNew wheel plant will expand on our success in Mexico and help toNew wheel plant will expand on our success in Mexico and help toNew wheel plant will expand on our success in Mexico and help tolower our overall cost structurelower our overall cost structurelower our overall cost structurelower our overall cost structure

� Liquidity remains strong Liquidity remains strong Liquidity remains strong Liquidity remains strong –––– generating cash to support continuing generating cash to support continuing generating cash to support continuing generating cash to support continuing investment and dividendsinvestment and dividendsinvestment and dividendsinvestment and dividends