Superior Industries International, Inc. (NYSE:SUP) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET
Company Participants
Tim Trenary - EVP and CFO
Majdi Abulaban - President and CEO
Conference Call Participants
Michael Ward - Benchmark
Gary Prestopino - Barrington Research
Operator
Welcome to Superior Industries Second Quarter 2023 Earnings Call. We are joined this morning by Majdi Abulaban, President and CEO; Tim Trenary, Executive Vice President and CFO. I'll now hand over the call to Tim Trenary. Thank you.
Tim Trenary
Good morning, everyone, and welcome to our second quarter 2023 earnings call. During our call this morning, we will be referring to our earnings presentation, which, along with our earnings release is available on the Investor Relations section of Superior's website. I am joined today by Majdi Abulaban, our President and Chief Executive Officer.
Before I turn the call over to Majdi, I would like to remind everyone that any forward-looking statements contained in this presentation or commented on today are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to Slide 2 of this presentation for the full Safe Harbor statement and in the company's SEC filings, including the company's current annual report on Form 10-K, for a more complete discussion of forward-looking statements and risk factors.
We will also be discussing various non-GAAP measures today. These non-GAAP measures exclude the impact of certain items and, therefore, are not calculated in the coins with U.S. GAAP. Reconciliations of these measures to the most directly comparable U.S. GAAP measures can be found in the appendix of this presentation.
I'll now turn the call over to Majdi to provide a business and portfolio update.
Majdi Abulaban
Thank you, Tim, and good morning, everyone. Thank you for joining our call today to review our second quarter results. I will begin on Slide 5. I am very pleased with our results this quarter, highlighting our continued focus on commercial discipline and operational excellence. This while our portfolio continues to drive growth.
More seriously, we are delivering value-add sales and margins above pre-COVID levels. We are seeing tandem recovery in industry production, both in North America and Europe, reflective of the continued easing of supply chain constraints and semiconductor shortages.
During the quarter, we saw a strong growth with nearly all of our OEM customers. However, as in the last quarter, a substantial portion of the growth in North America was driven by retail to rental companies, an area where we do not have significant content. The European aftermarket remains soft due to the looming recessionary concerns, high inventory at wholesalers and pricing interest rates. Despite these challenges, our FX adjusted value-added sales grew by 7% in the quarter, supporting the 17th consecutive quarter of year-over-year content growth.