Superior : Reports Second Quarter 2016 Financial Results

• Q2 EPS of $0.52, a 116.7% increase year-over-year
• Q2 wheel shipments of 3.1 million, a 13.2% increase year-over-year
• Q2 net income of $13.2 million, a 101.5% increase year-over-year
• Q2 adjusted EBITDA of $27.9 million, a 37.6% increase year-over-year
• $5.7 million of capital returned to shareholders through dividends and stock repurchases during Q2
• Raises 2016 outlook for net sales to a range of $710 million to $725 million, value- added sales to a range of $395 million to $403 million and adjusted EBITDA to a range of $102 million to $108 million

SOUTHFIELD, MICHIGAN - July 27, 2016 - Superior Industries International, Inc. (NYSE:SUP), the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America, today reported financial results for the second quarter ended June 26, 2016.

Don Stebbins, President and Chief Executive Officer, commented, "Our strong second quarter results were driven by solid growth in unit volume, favorable product mix and improved cost performance, similar to what we experienced in previous quarters. The continued earnings momentum in our business reflects the sustained cost and productivity improvements achieved over the past two years and we remain confident that our enhanced competitiveness resulting from our strategic initiatives will allow us to continue to drive growth in our business."

For the second quarter of 2016, the Company reported net income of $13.2 million, or $0.52 per diluted share, compared to net income of $6.5 million, or $0.24 per diluted share for the second quarter of 2015. The 101.5% increase in net income was largely driven by higher shipment volume as well as improved cost performance in the Company's manufacturing facilities, primarily driven by the new facility in Mexico operating at higher utilization rates in the second quarter of 2016, compared to the ramp-up during the prior year period.

Wheel unit shipments were 3.1 million in the second quarter of 2016, an increase of 13.2% compared to 2.7 million in the prior year period. Lower aluminum value, which is passed through to customers, was the cause of net sales for the second quarter of 2016 declining 0.7% to $182.7 million from $183.9 million in the second quarter of 2015 despite the strong unit volume growth. Value-added sales, defined as net sales less pass-through charges primarily

for the value of aluminum, were $101.2 million for the second quarter of 2016, a 15.5% increase compared to the second quarter of 2015 primarily due to higher unit shipments. See "Non-GAAP Financial Measures" below and the reconciliation of consolidated net sales to value-added sales in this press release.

Gross profit for the second quarter of 2016 increased 48.3% to $29.5 million, compared to

$19.9 million in the prior year period. Gross profit as a percentage of net sales expanded 534 basis points year-over-year to 16.2% compared to 10.8% for the second quarter of 2015, partially driven by lower aluminum value in net sales. Gross profit as a percentage of value- added sales expanded 646 basis points year-over-year to 29.2% compared to 22.7% of value- added sales in the prior year period. The increase in gross profit primarily reflects higher unit shipments as well as improved cost performance in the Company's manufacturing facilities, mainly driven by the new facility in Mexico operating at higher utilization rates in the second quarter of 2016. Costs related to operational inefficiencies during certain product ramp ups were offset partially by reduced carrying costs for a previously closed plant.

Selling, general and administrative expenses were $10.0 million compared to $8.9 million in the prior year period. The increase includes higher accruals for incentive compensation expenses primarily related to the improved profitability in 2016.

For the second quarter of 2016, income from operations was $19.5 million, or 10.7% of net sales, an increase of $8.5 million compared to operating income of $11.0 million, or 6.0% of net sales in the prior year period. Income from operations as a percentage of value-added sales was 19.3% for the second quarter of 2016 compared to 12.6% of value-added sales in the prior year period.

The provision for income taxes for the second quarter of 2016 was $6.1 million, resulting in an effective tax rate of 31.6%. This compares to an income tax expense in the second quarter of 2015 of $4.2 million and an effective tax rate of 39.1%.

Adjusted EBITDA, a non-GAAP measure, increased 37.6% to $27.9 million, or 27.6% of value- added sales, for the second quarter of 2016. This compares to $20.3 million, or 23.2% of

value-added sales, in the second quarter of 2015. See "Non-GAAP Financial Measures" below and the reconciliation of net income to adjusted EBITDA in this press release.

The Company reported net cash provided by operating activities of $24.5 million in the first half of 2016, compared to $25.2 million in the same period last year. Higher working capital partially offset the benefit of higher net income for the first half of 2016 compared to the same period last year.

During the second quarter of 2016, the Company paid a quarterly dividend payment of $0.18 per share. In addition, the Company repurchased 51,186 shares for a total of $1.2 million during the second quarter. Fiscal year to date through July 26, 2016, the Company

repurchased 740,257 shares for a total of $13.5 million. A total of $46.7 million remains available under the $50.0 million stock repurchase program approved by the Board of Directors on January 14, 2016.

Superior reported net income of $27.6 million, or $1.08 per diluted share, for the first half of 2016, compared with net income of $10.9 million, or $0.40 per diluted share, for the corresponding 2015 period.

In the first half of 2016, wheel shipments increased 19.0% to 6.3 million compared to 5.3 million in the first half of 2015. Net sales for the first half of 2016 were $368.8 million, up 3.1% from $357.7 million in the prior year period, primarily driven by higher unit shipments, largely offset by lower value for aluminum. Value-added sales for the first half of 2016 were $203.5 million, a 19.8% increase over value-added sales of $169.9 million in the same period a year ago. See "Non-GAAP Financial Measures" below and the reconciliation of consolidated net sales to value-added sales in this press release.

Gross profit for the first half of 2016 increased to $57.3 million from $31.1 million in the prior year period. Gross profit as a percentage of net sales expanded 682 basis points to 15.5% compared to 8.7% of net sales in the first half of 2015, partially driven by lower aluminum value in net sales. Gross profit as a percentage of value-added sales expanded 980 basis points year-over-year to 28.1% compared to 18.3% of value-added sales in the prior year period. The increase in gross profit primarily reflects higher unit shipments as well as improved cost performance in the Company's manufacturing facilities, mainly driven by the new facility in Mexico operating at higher utilization rates in 2016.

Selling, general, and administrative expenses increased to $19.0 million in the first half of 2016 compared to $16.4 million in the prior year period. The increase includes higher accruals for incentive compensation expenses primarily related to the improved profitability in 2016. The comparison is also impacted by a $0.5 million gain on the sale of an idle warehouse facility in the first half of 2015.

For the first half of 2016, income from operations was $38.3 million, or 10.4% of net sales compared to $14.7 million, or 4.1% of net sales in the prior year period. Income from operations as a percentage of value-added sales was 18.8% for the first half of 2016 compared to 8.7% of value-added sales in the prior year period.

The effective tax rate for the first half of 2016 was 27.8%, resulting in income tax expense of

$10.6 million. This compares to an effective tax rate of 24.0% or $3.4 million in income tax expense for the first half of 2015, which reflected a net tax benefit in the first quarter of 2015 resulting from a reversal of liabilities related to uncertain tax positions.

Adjusted EBITDA, a non-GAAP measure, increased 66.4% to $56.0 million, or 27.5% of value- added sales, for the first half of 2016, compared to $33.7 million, or 19.8% of value-added

sales, in the first half of 2015. See "Non-GAAP Financial Measures" below and the reconciliation of net income to adjusted EBITDA in this press release.

The Company has raised its outlook for full year 2016 unit shipment growth, net sales, value- added sales, and adjusted EBITDA, compared to the previously issued outlook. The Company maintains its previous outlook for capital expenditures and dividends for full year 2016, while adjusting its full year 2016 working capital and tax rate outlook.

• Superior expects net sales to be in the range of $710 million to $725 million, compared to the prior outlook of $690 million to $710 million.

• Superior expects value-added sales to be in the range of $395 million to $403 million, driven by expected unit shipment growth of approximately 6% to 8% and favorable product mix. This compares to the prior outlook of value-added sales of $380 million to

  $395 million and unit shipment growth of 3% to 6%. Value-added sales are defined as net sales less pass-through charges, primarily for the value of aluminum.

• Adjusted EBITDA is expected to be in the range of $102 million to $108 million or 25.8% to 26.8% of value-added sales, compared to the prior outlook of 24.1% to 24.8% of value-added sales or approximately $92 million to $98 million.

• Working capital is expected to be a net use of funds, compared to the prior outlook of a net source of funds.

• Capital expenditures are expected to be approximately $40 million.

• Dividends are expected to be approximately $20 million.

• The effective tax rate is expected to be in the range of 27% to 29%, compared to the prior outlook of a range of 25% to 27%.

In reliance on the safe harbor provided under section 10(e) or Regulation S-K, we have not quantitatively reconciled differences between valued-added sales, adjusted EBITDA and adjusted EBITDA margins, as well as their corresponding GAAP measures, presented in our 2016 Outlook, due to the inherent uncertainty regarding variables affecting the comparison of these forward-looking measures. However, the magnitude of difference between these non- GAAP measures and their corresponding GAAP measures may be significant.

Mr. Stebbins concluded, "Our revised 2016 outlook, which raises the midpoint of adjusted EBITDA by an additional 11%, reflects a combination of higher unit demand on existing and new programs, favorable product mix and overall cost improvement. Looking ahead, we remain focused on making further progress toward operational excellence to drive long-term profitable growth and attractive returns for our shareholders."