Superior Industries International, Inc. (NYSE:SUP) Q3 2023 Earnings Call Transcript

Majdi Abulaban: Yes. So a couple of things. Let me get to your 19-inch wheel question. So the content adders in our business started with sizing of wheels and now they’re evolving very quickly to other technology, including lightweighting and finishing. So to your question on 19-inch wheels, Gary, actually, I mean, for the next call, we may just change the line of demarcation here because 19-inch wheels now is small wheels. So now we’re – the majority of our wheels are quickly becoming 20 inches or larger. So if you look at the growth in 20-inch wheels year-on-year, you’ll see a big, big movement. If you look at 22-inch wheels, you’ll see almost a doubling in the last three years. So that trend of sizing continues.

If you talk to me four years ago, would I be launching a 24-inch wheel on – for the top two OEMs in North America this year, it would be hard to believe. And we’re doing that also on other side of the ocean. So what are customers asking for? So still, the trend for larger wheels is accelerating. But now lightweighting is such a big deal, Gary, it was probably 10% of our business not too long ago. Now it’s less than 20%, but it’s accelerating very fast. It’s a big deal. When you think of electrification, strengthening the wheel, taking weight out and improving the range. I’ve talked about it extensively, and we continue to invest in capacity. So that’s moving very fast. And then we talked about how wheels now are being effectively used by car makers to sell cars and all these new finishes, not only diamond cut wheels, but laser etching and other personalization of application to wheels are taking off.

So I feel very good about our trends not only in wheel side going to larger wheels – but also lightweighting is becoming a very big deal in our business.

Gary Prestopino: Okay. Thank you.

Majdi Abulaban: You’re welcome.

Operator: Thank you. There are no further questions in queue. I will now hand it back to Majdi for closing remarks. Thank you.

Majdi Abulaban: Thank you all for joining our call today and to the Superior team. Thank you again. Thank you, again, for your hard work this quarter, we look forward to continuing to execute on our growth strategy to drive our business forward. Have a great day. Thank you.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. Thank you for your participation. Stay safe. You may now disconnect.