Superior Industries Falls on Downgrade

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Shares of Superior Industries International Inc. and several other auto suppliers fell Wednesday after a Wall Street analyst downgraded the sector in the face of an automobile sales slump that is likely to persist.

David Leiker at Robert W. Baird & Co. cut his stock recommendation for the Van Nuys aluminum wheel supplier from “neutral” to “underperform,” and the sector as a whole from “overweight” to “market weight.”

“The economic downturn in the U.S. shows no signs of recovering (tight credit and housing), light vehicle sales in the U.S. are likely to remain depressed for several years (lower penetration), and auto sales in European and emerging markets appear headed for a cyclical downturn,” said Leiker in a note to investors.

Superior Industries last week announced that it was closing a plant in Kansas and cutting its U.S. work force by 29 percent, blaming the drop in demand for trucks and SUVs.

Shares of Superior closed down 53 cents, or 3 percent, to $17.23 Wednesday on the New York Stock Exchange.

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