By Josh Beckerman

Shares of aluminum wheel supplier Superior Industries International plunged after it reported discussions about a recapitalization transaction and said certain larger customers plan to resource all outstanding purchase orders to another supplier with a minimal wind-down period.

The stock was recently down 69% to 89 cents, and touched a 52-week low of 80 cents. Shares are down about 57% this year.

The company said the sudden loss of volumes resulted in a short-term liquidity constraint.

Superior is in talks with lenders on a recapitalization transaction designed to significantly de-lever its balance sheet. "The transaction would, among other things, address the preferred equity investment, significantly reduce outstanding debt by exchanging debt for common stock, and further enhance free cash flow," the company said. Superior plans to operate without interruption as it seeks to implement a transaction on an expedited timeline.

Superior also said its first-quarter loss narrowed to 92 cents a share from $1.52 a share as net sales rose to $321.6 million from $316.3 million.

Due to the macroeconomic uncertainty and the lost volume from certain customers, Superior is withdrawing its 2025 guidance.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

May 12, 2025 15:02 ET (19:02 GMT)

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