Superior Industries International, Inc. Business Report FY ended Dec. 2014

Financial Overview

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Factors
Net Sales	745.4	789.6	(5.6)	1)
Operating Income	17.9	34.6	(48.3)	2)

Factors
1) Net Sales
-Net sales for FY ended Dec. 2014 decreased by 5.6% year-on-year. Wheel sales in 2014 decreased by 5.5% to USD 736.5 million. Wheel shipments decreased by 7%. Net sales were favorably impacted by an increase in the value of the aluminum component of sales which the Company generally passes through to the customer. However it was offset by unfavorable changes in the mix of wheel sizes and finishes sold.

-Decreases in unit shipments to Ford, GM, Fiat-Chrysler, BMW, Toyota and Mitsubishi were partially offset by increases in unit shipments to Nissan, Subaru, Mazda, Tesla and VW. Wheel program development revenues decreased to USD 9.0 million in 2014 from USD 10.1 million in 2013.

2) Operating Income
-Operating income for FY ended Dec. 2014 decreased by 48.3% year-on-year mainly due to USD8.4 million of costs incurred for the Rogers facility closure. Operating income margin dropped to 2% in 2014 from 4% in 2013.

Restructuring

-In the fourth quarter 2014, the Company closed its manufacturing facility in Rogers, Arkansas, USA, as part of an initiative to reduce costs and enhance its global competitive position. The closure will result in scheduled production being shifted to other the Company's manufacturing facilities, including those in Fayetteville, Arkansas and Chihuahua, Mexico. The company reduced its workforce by approximately 500 employees.

-The Mexico's new facility, which started construction in 2013, will start initial commercial production in the first quarter of 2015.

Outlook for FY ending Dec. 2015

-Assumptions: North American Light Vehicle Production will increase 2.2% to 17.4 million.

Net Sales: USD 725-800 million
Capital Expenditures: USD 40 million

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Total	4.4	4.8	5.8

R&D Facilities

-The Company has technical centers located in Fayetteville, Arkansas and Southfield, Michigan.

Investment Outside USA

-The Mexico's new facility, which started construction in 2013, will start initial commercial production in the first quarter of 2015. The launch was on schedule and under budget. The Company has now four facilities in Chihuahua, Mexico.