BUSINESS WIRE<\/a>)–Superior Industries International, Inc. (\u201cSuperior\u201d or the \u201cCompany\u201d) (NYSE:SUP) <\/b>today announced that its subsidiary, Superior Industries Production Germany GmbH (\u201cSPG\u201d), has entered into Protective Shield Proceedings, a court-administered reorganization. These proceedings are strictly limited to SPG and its German-based manufacturing facility, operating at the production site in Werdohl, Germany. The Company\u2019s operations in the U.S., Mexico and Poland are not impacted, and its other German operations and aftermarket business are not part of these proceedings.<\/p>\n\n\u201cWe have made substantial progress in aligning our business to a rapidly evolving operating environment while elevating our footprint to a competitively advantaged position. Today, the vast majority of Superior\u2019s capacity is high-performing and is strategically placed in two low-cost locations, Mexico and Poland, creating an attractive \u2018local for local\u2019 solution for our customers as they seek shorter supply chains to mitigate production risks. The action we are taking represents a continuation of our plan and the transformation of the remaining 6% of our footprint,\u201d commented Majdi Abulaban, President and Chief Executive Officer of Superior. \u201cOur competitive differentiators, including our ability to capture customer demand for larger, premium wheels, will continue to support our business well into the future.\u201d<\/p>\n
Strategic Action Details<\/b><\/p>\n
\nIn conjunction with the proceedings, Superior has developed a revised operating plan at its SPG facility to reduce costs, enhance revenues, and to better address critical customer needs. The actions the Company is undertaking are expected to drive long-term improvement in margins and cash flow while enabling a more efficient and effective footprint to support long-term growth. Superior maintains a strong financial position with ample liquidity, enabling the Company to focus on providing the highest level of service for its customers throughout the proceedings.<\/p>\n
\nThe Company expects to recognize a non-cash charge of approximately $82 million in the third quarter of 2023, representing the excess of the carrying value of the net assets over the estimated preliminary fair value of its interest in SPG.<\/p>\n
\nSuperior expects to incur cash charges associated with these proceedings of \u20ac15 to 18 million and a benefit to adjusted EBITDA, which is expected to be fully realized in 2024 on a run rate basis, that reflects a payback of approximately one year.<\/p>\n