16
Superior Industries International NYSE: SUP Second Quarter 2012 Earnings Conference Call August 3, 2012
Superior Industries International
NYSE: SUP
Second Quarter 2012Earnings Conference Call
August 3, 2012
www.supind.com
Page 2
Forward Looking Statements
Any forwardAny forwardAny forwardAny forward----looking statements made in this web cast or contained in this looking statements made in this web cast or contained in this looking statements made in this web cast or contained in this looking statements made in this web cast 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 and energy, foreign currency, commodity prices including metal and energy, foreign currency, commodity prices including metal and energy, foreign currency, commodity prices including metal and energy, foreign currency, manufacturing capacity and productivity, capital investment, opemanufacturing capacity and productivity, capital investment, opemanufacturing capacity and productivity, capital investment, opemanufacturing capacity and productivity, capital investment, operating and rating and rating and rating and manufacturing challenges, and our strategic and operating plans.manufacturing challenges, and our strategic and operating plans.manufacturing challenges, and our strategic and operating plans.manufacturing challenges, and our strategic and operating plans. Please Please Please Please refer to the companyrefer to the companyrefer to the companyrefer to the company’’’’s SEC filings, including our 2011 Annual Report on s SEC filings, including our 2011 Annual Report on s SEC filings, including our 2011 Annual Report on s SEC filings, including our 2011 Annual Report on Form 10Form 10Form 10Form 10----K, for a complete discussion on forwardK, for a complete discussion on forwardK, for a complete discussion on forwardK, for a complete discussion on forward----looking statements and risk looking statements and risk looking statements and risk looking statements and risk factors that may cause actual events to differ from these forwarfactors that may cause actual events to differ from these forwarfactors that may cause actual events to differ from these forwarfactors that may cause actual events to differ from these forwardddd----looking looking looking looking statements.statements.statements.statements.
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North American Vehicle Production vs. Superior Shipments
NA Production increased 27% over the prior year – Highest levels since Q2 of 2007. Superior’s shipments were up 14% over the prior year.
NA Light Vehicle Superior
Description (all units in millions) Production Shipments
- Q2 total units: 2011 3.11 2.912012 3.97 3.322012 vs. 2011 +27.4% +14.1%
Source: Wards Automotive Group
Includes Passenger Cars, Light Trucks and SUVs Source: Superior Internal data
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Vehicles in Millions
Q2
07
Q3
07
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
North American Light Vehicle Production
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Wheels in Millions
Q2
07
Q3
07
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
Superior Shipped Units
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NA Vehicle Production – Year-over-Year Comparison
Several international brands continued to regain market share lost to GM and Ford in 2011.
� Our largest customers Ford and GM lagged the market in 2Q12, whOur largest customers Ford and GM lagged the market in 2Q12, whOur largest customers Ford and GM lagged the market in 2Q12, whOur largest customers Ford and GM lagged the market in 2Q12, which contributed to our overall share ich contributed to our overall share ich contributed to our overall share ich contributed to our overall share decline.decline.decline.decline.
– Ford +4% Ford +4% Ford +4% Ford +4% ---- Light truck platforms +3% pass cars + 5% Light truck platforms +3% pass cars + 5% Light truck platforms +3% pass cars + 5% Light truck platforms +3% pass cars + 5% ---- FFFF----Series, Flex, Explorer, Focus and FusionSeries, Flex, Explorer, Focus and FusionSeries, Flex, Explorer, Focus and FusionSeries, Flex, Explorer, Focus and Fusion– GM +2% GM +2% GM +2% GM +2% –––– Gains in pass car platforms Gains in pass car platforms Gains in pass car platforms Gains in pass car platforms ---- light trucks flat due to GMT 900 changeoverlight trucks flat due to GMT 900 changeoverlight trucks flat due to GMT 900 changeoverlight trucks flat due to GMT 900 changeover
� 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 +22% Chrysler +22% Chrysler +22% Chrysler +22% ---- led by light trucks programs led by light trucks programs led by light trucks programs led by light trucks programs –––– Van programs, Dodge Ram Truck, Compass and Van programs, Dodge Ram Truck, Compass and Van programs, Dodge Ram Truck, Compass and Van programs, Dodge Ram Truck, Compass and Liberty programs all grew significantlyLiberty programs all grew significantlyLiberty programs all grew significantlyLiberty programs all grew significantly
� Production for International Brands increased 65% in 2Q12Production for International Brands increased 65% in 2Q12Production for International Brands increased 65% in 2Q12Production for International Brands increased 65% in 2Q12
– Toyota + 136% Toyota + 136% Toyota + 136% Toyota + 136% ---- Up on all programs compared to 2Q11 which was affected by TsunaUp on all programs compared to 2Q11 which was affected by TsunaUp on all programs compared to 2Q11 which was affected by TsunaUp on all programs compared to 2Q11 which was affected by Tsunami issues.mi issues.mi issues.mi issues.– VW + 45% VW + 45% VW + 45% VW + 45% ---- Led by Led by Led by Led by PassatPassatPassatPassat and reand reand reand re----introduction of Beetleintroduction of Beetleintroduction of Beetleintroduction of Beetle– Nissan + 25% Nissan + 25% Nissan + 25% Nissan + 25% ---- Light truck growth strongest, along with Versa, March and Light truck growth strongest, along with Versa, March and Light truck growth strongest, along with Versa, March and Light truck growth strongest, along with Versa, March and AltimaAltimaAltimaAltima– Subaru + 38% Subaru + 38% Subaru + 38% Subaru + 38% ---- Legacy/OutbackLegacy/OutbackLegacy/OutbackLegacy/Outback
NA Light Vehicle Superior
Description (all units in millions) Production Shipments
- Q2 total units: 2011 3.11 2.912012 3.97 3.322012 vs. 2011 +27.4% +14.1%
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Superior Shipments – Year-over-Year Comparison
Superior shipments increased 14% year-over-year Lower market share primarily reflects customer / product mix shifts.
� Strong growth at Ford and the international brands Strong growth at Ford and the international brands Strong growth at Ford and the international brands Strong growth at Ford and the international brands ---- pacing with or exceeded the customerpacing with or exceeded the customerpacing with or exceeded the customerpacing with or exceeded the customer’’’’s increase in productions increase in productions increase in productions increase in production
– Ford + 19% Ford + 19% Ford + 19% Ford + 19% ---- Strong growth in light trucks leading to market share gains Strong growth in light trucks leading to market share gains Strong growth in light trucks leading to market share gains Strong growth in light trucks leading to market share gains ---- Flex and new EscapeFlex and new EscapeFlex and new EscapeFlex and new Escape– Toyota + 114% Toyota + 114% Toyota + 114% Toyota + 114% ---- Tsunami recovery Tsunami recovery Tsunami recovery Tsunami recovery ---- Large increases on Camry, Avalon, Highlander, Tacoma and SiennaLarge increases on Camry, Avalon, Highlander, Tacoma and SiennaLarge increases on Camry, Avalon, Highlander, Tacoma and SiennaLarge increases on Camry, Avalon, Highlander, Tacoma and Sienna
– Nissan + 28% Nissan + 28% Nissan + 28% Nissan + 28% –––– Maxima and Maxima and Maxima and Maxima and XterraXterraXterraXterra / Frontier / Frontier / Frontier / Frontier
– BMW + 36% BMW + 36% BMW + 36% BMW + 36% –––– X3X3X3X3
� Shipments to Chrysler were +8% but still lagged their increase iShipments to Chrysler were +8% but still lagged their increase iShipments to Chrysler were +8% but still lagged their increase iShipments to Chrysler were +8% but still lagged their increase in production as program mix had a impact.n production as program mix had a impact.n production as program mix had a impact.n production as program mix had a impact.
– Light truck shipments up on Caravan, Town & Country and Jeep ComLight truck shipments up on Caravan, Town & Country and Jeep ComLight truck shipments up on Caravan, Town & Country and Jeep ComLight truck shipments up on Caravan, Town & Country and Jeep Compasspasspasspass
– Passenger car shipments were down slightly while production was Passenger car shipments were down slightly while production was Passenger car shipments were down slightly while production was Passenger car shipments were down slightly while production was up 10%up 10%up 10%up 10%
� Shipments to GM down 10% vs. NA production +2%Shipments to GM down 10% vs. NA production +2%Shipments to GM down 10% vs. NA production +2%Shipments to GM down 10% vs. NA production +2%
– Largest declines were on GMT 900 (on platform changeover) and MaLargest declines were on GMT 900 (on platform changeover) and MaLargest declines were on GMT 900 (on platform changeover) and MaLargest declines were on GMT 900 (on platform changeover) and Malibu libu libu libu
– Nice gains on Impala, SRX and Cadillac SRXNice gains on Impala, SRX and Cadillac SRXNice gains on Impala, SRX and Cadillac SRXNice gains on Impala, SRX and Cadillac SRX
NA Light Vehicle Superior
Description (all units in millions) Production Shipments
- Q2 total units: 2011 3.11 2.912012 3.97 3.322012 vs. 2011 +27.4% +14.1%
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NA Production / Superior – Sequential Quarter Comparison
� Most OEMs, except Ford and Chrysler, were flat or down slightlyMost OEMs, except Ford and Chrysler, were flat or down slightlyMost OEMs, except Ford and Chrysler, were flat or down slightlyMost OEMs, except Ford and Chrysler, were flat or down slightly....– Ford +9% and Chrysler +4%Ford +9% and Chrysler +4%Ford +9% and Chrysler +4%Ford +9% and Chrysler +4%– GM down 3% on GMT 900GM down 3% on GMT 900GM down 3% on GMT 900GM down 3% on GMT 900– International brands down slightly after three consecutive quartInternational brands down slightly after three consecutive quartInternational brands down slightly after three consecutive quartInternational brands down slightly after three consecutive quarters of double digit growth.ers of double digit growth.ers of double digit growth.ers of double digit growth.
� Slight contraction in lightSlight contraction in lightSlight contraction in lightSlight contraction in light----trucks reflects 1Q12 build ahead on GMT 900trucks reflects 1Q12 build ahead on GMT 900trucks reflects 1Q12 build ahead on GMT 900trucks reflects 1Q12 build ahead on GMT 900
� Sequential shipment increase of 8% for strongest quarter since 2Sequential shipment increase of 8% for strongest quarter since 2Sequential shipment increase of 8% for strongest quarter since 2Sequential shipment increase of 8% for strongest quarter since 2Q07.Q07.Q07.Q07.
� Ford +29% on strong lightFord +29% on strong lightFord +29% on strong lightFord +29% on strong light----truck and passenger car shipments truck and passenger car shipments truck and passenger car shipments truck and passenger car shipments –––– Up in almost all programsUp in almost all programsUp in almost all programsUp in almost all programs
� Chrysler + 6% on strong Caravan and Town and Country shipments.Chrysler + 6% on strong Caravan and Town and Country shipments.Chrysler + 6% on strong Caravan and Town and Country shipments.Chrysler + 6% on strong Caravan and Town and Country shipments.
� GM down 6% on GMT 900 changeover.GM down 6% on GMT 900 changeover.GM down 6% on GMT 900 changeover.GM down 6% on GMT 900 changeover.
� International shipments flat.International shipments flat.International shipments flat.International shipments flat.
Q2 market share increased from 1Q12, as shipment growth outpaced NA Production.
NA Light Vehicle Superior
Description (all units in millions) Production Shipments
- Q1 total units: 2012 3.95 3.07
- Q2 total units: 2012 3.97 3.32
- Q1 2012 vs. Q2 2012 +.4% 8.3%
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MarketMarketMarketMarket
SuperiorSuperiorSuperiorSuperior
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Page 7
Q2 2012 Significant Highlights - Sales
Volume was up strongly in Q2 of 2012. Net sales grew at lesser rate due to lower aluminum prices and weaker Peso.
Q2 2012 Q2 2011 Amount Percent YTD 2012 YTD 2011 Amount Percent
Volume (Wheels Shipped) 3.3 2.9 0.4 14.1% 6.4 5.7 0.7 12.8%
Net Sales:Total $215.1 $208.7 $6.4 3% $417.5 $398.3 $19.2 5%
Volume $28.7 $48.3Project Development $0.1 -$0.1
Sales Adjsutments -$0.5 -$1.7Clad Upcharge $0.4 $1.9
Price / Mix -$22.3 -$29.2
Aluminum Content - Price -$13.1 -$18.0
Aluminum Content - Weight $0.3 $1.1FX Impact -$6.0 -$8.4
Price / Mix Other -$3.5 -$3.9
Millions Variance Millions Variance
-$22.3-$12.8
-$29.2-$16.9
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Page 8
Q2 2012 Significant Highlights – Gross Profit
� Production level set a third consecutive record since the 2009 dProduction level set a third consecutive record since the 2009 dProduction level set a third consecutive record since the 2009 dProduction level set a third consecutive record since the 2009 downturnownturnownturnownturn
� Lower aluminum prices had a slightly favorable impact on marginsLower aluminum prices had a slightly favorable impact on marginsLower aluminum prices had a slightly favorable impact on marginsLower aluminum prices had a slightly favorable impact on margins
� Product mix impact on gross margin primarily reflects pricingProduct mix impact on gross margin primarily reflects pricingProduct mix impact on gross margin primarily reflects pricingProduct mix impact on gross margin primarily reflects pricing
� Devaluation of Mexican Peso negatively impacted sales more than Devaluation of Mexican Peso negatively impacted sales more than Devaluation of Mexican Peso negatively impacted sales more than Devaluation of Mexican Peso negatively impacted sales more than it favorably impacted cost it favorably impacted cost it favorably impacted cost it favorably impacted cost
� Plant spending performance was favorable excluding increased maiPlant spending performance was favorable excluding increased maiPlant spending performance was favorable excluding increased maiPlant spending performance was favorable excluding increased maintenance cost ntenance cost ntenance cost ntenance cost –––– Mexico Mexico Mexico Mexico performing very well, while U.S. is facing challengesperforming very well, while U.S. is facing challengesperforming very well, while U.S. is facing challengesperforming very well, while U.S. is facing challenges
� Maintenance expense increased because of capacity demands and viMaintenance expense increased because of capacity demands and viMaintenance expense increased because of capacity demands and viMaintenance expense increased because of capacity demands and vintage of equipment in ntage of equipment in ntage of equipment in ntage of equipment in Midwest plantsMidwest plantsMidwest plantsMidwest plants
� Unfavorable workers compensation adjustments related to closed fUnfavorable workers compensation adjustments related to closed fUnfavorable workers compensation adjustments related to closed fUnfavorable workers compensation adjustments related to closed facilitiesacilitiesacilitiesacilities
Note 1 – This measurement is consider a “Non-GAAP Financial Measure” – see page no. 16
Q2 2012 Q2 2011 Amount Percent
Shipment (millions) 3.32 2.91 0.41 14.1%
Production (millions) 3.32 2.95 0.38 12.9%
Capacity Utilization (%) (adjusted for shutdowns) 101% 94% 7%
- Gross profit : Q2 2012 Q2 2011 Q2 2012 Q2 2011
Total reported $15.7 $19.5 7.3% 9.4%
Aluminum price impact on revenue -0.4%
Product mix ($3.7) 1.7%
Foreign Exchange ($2.7) 1.3% Plant performance $1.5 -0.7% Repairs and Maintenance ($1.0) 0.5% Project Development Expense ($0.2) 0.1% Workers Comp Adjustmnets ($1.1) 0.5%Gross profit adjusted for comparability (Note 1) 10.2% 9.4%
Variance - Plus (Minus)
Income / (Expense) Percent to Sales
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Page 9
Q2 2012 Income Statements – Other Comments
� SG&A expense up 12% in 2Q12 compared to 2Q11SG&A expense up 12% in 2Q12 compared to 2Q11SG&A expense up 12% in 2Q12 compared to 2Q11SG&A expense up 12% in 2Q12 compared to 2Q11
– 2Q12 = 3.5% of sales 2Q12 = 3.5% of sales 2Q12 = 3.5% of sales 2Q12 = 3.5% of sales –––– 2Q11 = 3.0% of sales2Q11 = 3.0% of sales2Q11 = 3.0% of sales2Q11 = 3.0% of sales
– 2Q12 had additional expenses for legal, audit and consulting exp2Q12 had additional expenses for legal, audit and consulting exp2Q12 had additional expenses for legal, audit and consulting exp2Q12 had additional expenses for legal, audit and consulting expenses enses enses enses ––––no systemic change in cost levelsno systemic change in cost levelsno systemic change in cost levelsno systemic change in cost levels
� Prior year impairment was for facility sold in 3Q11Prior year impairment was for facility sold in 3Q11Prior year impairment was for facility sold in 3Q11Prior year impairment was for facility sold in 3Q11
� Effective tax rate for 2Q12 was 24% compared to a benefit of Effective tax rate for 2Q12 was 24% compared to a benefit of Effective tax rate for 2Q12 was 24% compared to a benefit of Effective tax rate for 2Q12 was 24% compared to a benefit of 8% percent in 2Q118% percent in 2Q118% percent in 2Q118% percent in 2Q11
– 2012 reflects some benefit from FIN48 liability reversal for tol2012 reflects some benefit from FIN48 liability reversal for tol2012 reflects some benefit from FIN48 liability reversal for tol2012 reflects some benefit from FIN48 liability reversal for tolling of ling of ling of ling of Mexico statute for 2006Mexico statute for 2006Mexico statute for 2006Mexico statute for 2006
– 2011 net benefit reflected update of foreign taxes based on new 2011 net benefit reflected update of foreign taxes based on new 2011 net benefit reflected update of foreign taxes based on new 2011 net benefit reflected update of foreign taxes based on new information received during the quarterinformation received during the quarterinformation received during the quarterinformation received during the quarter
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Page 10
Balance Sheet & Cash Flow Comments
� Cash and shortCash and shortCash and shortCash and short----term investments increased $19.4M during the first term investments increased $19.4M during the first term investments increased $19.4M during the first term investments increased $19.4M during the first half of 2012 to end the quarter at $212.3Mhalf of 2012 to end the quarter at $212.3Mhalf of 2012 to end the quarter at $212.3Mhalf of 2012 to end the quarter at $212.3M
� Net accounts receivable increased $8.6M while net inventory was Net accounts receivable increased $8.6M while net inventory was Net accounts receivable increased $8.6M while net inventory was Net accounts receivable increased $8.6M while net inventory was flat compared to year end 2011flat compared to year end 2011flat compared to year end 2011flat compared to year end 2011– Trade A/R increased due to higher sales volumes partially offsetTrade A/R increased due to higher sales volumes partially offsetTrade A/R increased due to higher sales volumes partially offsetTrade A/R increased due to higher sales volumes partially offset by FX impacts by FX impacts by FX impacts by FX impacts
– Inventory dollars were flat Inventory dollars were flat Inventory dollars were flat Inventory dollars were flat ---- finished goods units have increased to buffer finished goods units have increased to buffer finished goods units have increased to buffer finished goods units have increased to buffer production / demand imbalance production / demand imbalance production / demand imbalance production / demand imbalance
� Capital expenditures = $8.7M for the first half of the yearCapital expenditures = $8.7M for the first half of the yearCapital expenditures = $8.7M for the first half of the yearCapital expenditures = $8.7M for the first half of the year
– Pace of spending should increase in second half of the yearPace of spending should increase in second half of the yearPace of spending should increase in second half of the yearPace of spending should increase in second half of the year
– 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 and ility and ility and ility and capacity capacity capacity capacity
� Working capital and current ratio remained strong at $345M and Working capital and current ratio remained strong at $345M and Working capital and current ratio remained strong at $345M and Working capital and current ratio remained strong at $345M and 5.2:1 at the end of the second quarter5.2:1 at the end of the second quarter5.2:1 at the end of the second quarter5.2:1 at the end of the second quarter
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Page 11
2nd Quarter Income StatementsUnaudited
(US$ in Thousands, except for per share amounts)
Q2 2012 Q2 2011 Amount Percent
Unit Shipments 3,318,662 2,908,335 410,327 14%
Total Revenues 215,053$ 208,734$ 6,319$ 3%
Gross Profit 15,716$ 19,547$ (3,831)$ -20%
% of Revenues 7.3% 9.4% -2.1%
SG&A Expenses (7,490) (6,354) (1,136) 18%
% of Revenues -3.5% -3.0% -0.4%
Impairment Costs - (340) 340 -100%
Operating Income 8,226 12,853 (4,627) -36%
% of Revenues 3.8% 6.2% -2.3%
Interest Income, net 216 358 (142) -40%
Foreign Exchange Gain (Loss) (91) 76 (167) -220%
Miscellaneous Inc/Exp 87 358 (271) -76%
Income Before Income Taxes and
Equity Earnings of JVs 8,438 13,645 (5,207) -38%
Income Tax (Provision) Benefit (2,024) 1,055 (3,079) -292%
Equity Income (Loss) - JVs - - -
Net Income 6,414$ 14,700$ (8,286) -56%
Income Per Share - Diluted 0.23$ 0.53$ (0.30)$
(Unfavorable)
Favorable
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Page 12
June Year-to-Date Income StatementsUnaudited
(US$ in Thousands, except for per share amounts) YTD YTD
June 2012 June 2011 Amount Percent
Unit Shipments 6,384,399 5,661,237 723,162 13%
Total Revenues 417,510$ 398,268$ 19,242$ 5%
Gross Profit 32,824$ 36,424$ (3,600)$ -10%
% of Revenues 7.9% 9.1% -1.3%
SG&A Expenses (14,375) (13,046) (1,329) 10%
% of Revenues -3.4% -3.3% -0.2%
Impairment Costs - (340) 340 -
Operating Income 18,449 23,038 (4,589) -20%
% of Revenues 4.4% 5.8% -1.4%
Interest Income, net 516 649 (133) -20%
Foreign Exchange Gain (Loss) 112 361 (249) -69%
Miscellaneous Inc/Exp 224 764 (540) -71%
Income Before Income Taxes and
Equity Earnings of JVs 19,302 24,812 (5,510) -22%
Income Tax (Provision) Benefit (6,154) (2,058) (4,096) 199%
Equity Income (Loss) - JVs - - -
Net Income 13,147$ 22,754$ (9,607) -42%
Income Per Share - Diluted 0.48$ 0.83$ (0.35)$
(Unfavorable)
Favorable
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Page 13
Summary Balance SheetsUnaudited
(US$ in Millions)
June December Increase
ASSETS 2012 2011 (Decrease)
Cash & Equivalents 207.5$ 187.8$ 19.7$
S-T Investments 4.8 5.1 (0.3)
Accounts Receivable, net 128.5 119.9 8.6
Inventories, net 67.2 66.9 0.3
Prepaid Aluminum 6.9 11.7 (4.8)
Other Current Assets 12.0 12.9 (0.9)
Total Current Assets 426.9 404.3 22.6
Property, Plant & Equipment 142.2 145.7 (3.5)
Investments 4.6 4.7 (0.1)
Other Assets 34.2 38.5 (4.3) Total Assets 607.9$ 593.2$ 14.7$
LIABILITIES & EQUITY
Accounts Payable 39.0$ 29.0$ 10.0$
Other Current Liabilities 43.2 39.5 3.7
Total Current Liabilities 82.2 68.5 13.7
Non-Current Liabilities 60.4 64.2 (3.8)
Shareholders' Equity 465.3 460.5 4.8 Total Liabilities & Equity 607.9$ 593.2$ 14.7$
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Page 14
Summary Cash Flow StatementsUnaudited
June 2012 June 2011 IncreaseActual Actual (Decrease)
Net Income (Loss) 13.1$ 22.8$ (9.7)$
Depreciation 12.9 14.2 (1.3)
Deferred Income Taxes 3.8 (7.1) 10.9
Accounts Receivable (10.5) (19.1) 8.6
Inventories (0.8) (4.9) 4.1
Prepaid Aluminum 4.8 8.9 (4.1)
Accounts Payable 9.7 (7.1) 16.8
Liability for FIN 48 (4.3) 1.7 (6.0)
Other Operations Related Items 5.9 0.0 5.9
Cash Flow from Operations 34.6 9.4 25.2
Cash Dividends (8.7) (8.7) -
Capital Expenditures (8.7) (9.5) 0.8
Proceeds from Exercise of Stock Options 0.4 4.6 (4.2)
Loan to / Investment in Synergies
Net Change in Maturing Investments 0.3 16.8 (16.5)
All Other 1.8 2.3 (0.5)
Net Increase (Decrease) 19.7 14.9 4.8
Cash - Beginning 187.8 129.6
Cash - Ending 207.5$ 144.5$
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Page 15
Conclusion
� NA auto production showed strong growth in 2Q12, hitting highestNA auto production showed strong growth in 2Q12, hitting highestNA auto production showed strong growth in 2Q12, hitting highestNA auto production showed strong growth in 2Q12, hitting highestlevels since 2Q07 levels since 2Q07 levels since 2Q07 levels since 2Q07
� SuperiorSuperiorSuperiorSuperior’’’’s market share decline primarily driven by customer mixs market share decline primarily driven by customer mixs market share decline primarily driven by customer mixs market share decline primarily driven by customer mix
� Plant utilization rates remain at high levels Plant utilization rates remain at high levels Plant utilization rates remain at high levels Plant utilization rates remain at high levels ---- surge capacity being surge capacity being surge capacity being surge capacity being utilizedutilizedutilizedutilized
� Margin pressure reflects pricing, product mix, foreign currency Margin pressure reflects pricing, product mix, foreign currency Margin pressure reflects pricing, product mix, foreign currency Margin pressure reflects pricing, product mix, foreign currency impact and higher operating costimpact and higher operating costimpact and higher operating costimpact and higher operating cost
� Mexico operations running smoothly while U.S. facing challenges Mexico operations running smoothly while U.S. facing challenges Mexico operations running smoothly while U.S. facing challenges Mexico operations running smoothly while U.S. facing challenges
� 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
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Page 16
Non-GAAP Financial Measures
This slide presentation contains a financial measure on page 8 This slide presentation contains a financial measure on page 8 This slide presentation contains a financial measure on page 8 This slide presentation contains a financial measure on page 8 --------
““““Q2 2012 Significant Highlights Q2 2012 Significant Highlights Q2 2012 Significant Highlights Q2 2012 Significant Highlights –––– Gross ProfitGross ProfitGross ProfitGross Profit”””” -------- determined by determined by determined by determined by methods other than in accordance with U.S. GAAP. This measure methods other than in accordance with U.S. GAAP. This measure methods other than in accordance with U.S. GAAP. This measure methods other than in accordance with U.S. GAAP. This measure is labeled is labeled is labeled is labeled ““““Gross profit adjusted for comparabilityGross profit adjusted for comparabilityGross profit adjusted for comparabilityGross profit adjusted for comparability””””, and is , and is , and is , and is presented as additional information to explain the impact of cerpresented as additional information to explain the impact of cerpresented as additional information to explain the impact of cerpresented as additional information to explain the impact of certain tain tain tain elements of cost performance and the comparison of gross profit elements of cost performance and the comparison of gross profit elements of cost performance and the comparison of gross profit elements of cost performance and the comparison of gross profit for the time periods presented. Management uses this nonfor the time periods presented. Management uses this nonfor the time periods presented. Management uses this nonfor the time periods presented. Management uses this non----GAAP GAAP GAAP GAAP financial measure to assess the performance of our core businessfinancial measure to assess the performance of our core businessfinancial measure to assess the performance of our core businessfinancial measure to assess the performance of our core business. . . . We believe this nonWe believe this nonWe believe this nonWe believe this non----GAAP financial measure provides meaningful GAAP financial measure provides meaningful GAAP financial measure provides meaningful GAAP financial measure provides meaningful additional information about our operating results. These nonadditional information about our operating results. These nonadditional information about our operating results. These nonadditional information about our operating results. These non----GAAP financial measure should not be considered as a substitute GAAP financial measure should not be considered as a substitute GAAP financial measure should not be considered as a substitute GAAP financial measure should not be considered as a substitute for operating results determined in accordance with U.S. GAAP for operating results determined in accordance with U.S. GAAP for operating results determined in accordance with U.S. GAAP for operating results determined in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of and may not be comparable to other similarly titled measures of and may not be comparable to other similarly titled measures of and may not be comparable to other similarly titled measures of other companies.other companies.other companies.other companies.
