Superior Industries International Inc.

Overview Key strengths Key risks Meaningful market share in North American and European markets with a strong position in large diameter, premium wheels. Supplies highly volatile automotive original equipment manufacturer (OEM) end markets. High degree of revenue visibility derived from long-term contracts with OEM customers. Significant customer concentration with the top customer and top three customers representing 26% and 53% of 2021 revenue, respectively. Positive free cash flow generation likely in 2022. Elevated debt to EBITDA above 5.0x in the forecast period through 2023. Superior Industries International Inc.?s high customer concentrations in the highly cyclical automotive channel remain significant risk factors. The company?s top customers consisted of automotive OEMs including General Motors (26% of 2021 revenue), Volkswagen (14%), and Ford

...Superior Industries International Inc.'s high customer concentrations in the highly cyclical automotive channel remain significant risk factors. The company's top customers consisted of automotive OEMs including General Motors (26% of 2021 revenue), Volkswagen (14%), and Ford (13%), together 53% of 2021 revenue. Superior maintains contracts with automotive OEM customers to supply aluminum cast wheels for periods ranging from one year up to the lifetime of vehicle platform production (typically three to five years). The loss of top platforms with OEM customers, a decline in consumer demand for light vehicles, or ongoing OEM production disruptions would have an adverse impact on Superior's unit volumes, profitability, and cash flow in the projection period. The recent...

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