DETROIT — Superior Industries International Inc. said it posted a fourth-quarter net loss of $99 million, largely as a result of the UAW strike at General Motors.
The aluminum wheel supplier reported net income of $8 million during the same quarter in 2018.
Superior Industries fourth-quarter net sales dropped just more than 18 percent to $310 million. The decrease in the quarter was driven by lower volumes, including the impact from the strike at GM of about $30 million, the supplier said in a statement Friday.
Adjusted earnings before interest, taxes, depreciation and amortization fell nearly 17 percent to $38 million.
“The decrease in adjusted EBITDA was driven by lower volumes in North America and Europe, including the UAW labor strike at General Motors, partially offset by the shift to larger, more premium wheels,” the statement said.
The UAW strike has impacted many other suppliers, such as American Axle, BorgWarner and Nemak.
Fourth-quarter cash flow decreased 34 percent to $60.5 million.
For the full year, Superior Industries said net sales decreased by nearly 7 percent, to $1.4 billion.
Adjusted operating income for the year decreased by 9 percent to $169 million, compared with $186 million in 2018.
Full-year cash flow increased by 4 percent to $163 million in 2019.
“These results underscore our competitive position and support the attractive tailwinds in the aluminum wheel industry,” CEO Majdi Abulaban said in the statement. “Further, given the softer automotive demand environment, we positioned the company for the future by rightsizing our manufacturing footprint, improving our cost structure and strengthening our balance sheet with record cash flow from operations of $163 million and net debt reduction of $84 million.”
Abulaban became Superior’s permanent CEO in May 2019, taking over after former CEO Don Stebbins retired at the end of 2018 following a four-year stint at the helm.
Superior Industries shares fell 1.5 percent to close at $2.56 on Monday.
In 2020, the company forecasts net sales of between $1.33 billion and $1.39 billion. It expects adjusted earnings between $170 million and $190 million.
