Superior Industries International has announced actions aimed at further preserving financial flexibility to manage through a possible prolonged lower production environment.
On March 23, Superior announced various actions in response to the ongoing COVID-19 pandemic and shutdowns by global automotive OEMs. The announced actions included measures to ensure the health and safety of the company’s employees, reduce production costs, and strengthen Superior’s liquidity position.
As previously announced, Superior is suspending production at all its manufacturing facilities. While there is not clear visibility as to the length of the temporary shutdowns, the company continues to monitor OEM production and follow guidance provided by federal, state, and local governments.
Further, Superior is also taking the following actions. The extent and duration of these actions will be revisited based on how the situation develops:
- Non-employee board members will forgo all cash compensation from April 1 through May 31
- All executives will take a 20-percent reduction in base salary from April 1 through May 31
- All other salaried employees will take a 20 percent reduction in base salary from April 1 through May 31 in accordance with local laws, regulations, and labor agreements.
- Most of Superior’s manufacturing workforce will be temporarily laid off in line with facility closures
- Discretionary spending has been suspended
- Superior has targeted reductions in working capital including significantly reducing the purchase of all direct material
- All non-essential capital investments have been placed on hold
- Additional measures have been implemented to protect the health of employees including remote work, enhanced facility sanitation, taking temperatures prior to entering facilities, among other actions
“In this time of uncertainty, we continue to prioritize the health and safety of our employees around the globe while staying laser focused on responding to a quickly evolving environment,” said Majdi Abulaban, president and CEO of Superior. “While Superior has a solid liquidity position of nearly $300 million, we are taking all appropriate actions to maintain our financial position and remain nimble as we navigate these extraordinary times. These decisions are difficult, but we believe they are necessary in the face of an evolving production outlook.”