|Over a month ago|
Commercial Vehicle Group stops making specific projections for the year » 18:3604/2804/28/20
The company said,…
The company said, "The full impact of the global COVID-19 outbreak is unclear but we are in businesses where eventual vehicle replacement is needed. A macro-trend in commercial vehicles that is fully underway is in electric vehicles versus combustion vehicles and the company is a participant in these programs. Additionally, the company's business of providing material handling solutions for parcel distribution customers is growing rapidly. Already this year, we have started up two new plant locations for these systems and is making use of the idle time caused by COVID on the company's vehicle business. Our business in China went down first when the COVID pandemic hit and is back on line and above pre-COVID rates. We expect post-COVID vehicle production in mature markets to come back slowly and have adjusted our cost structures accordingly, with more to go. We are happy that we naturally harvest working capital in downturns and that is happening now. We will continue to be disciplined and forge ahead with select capital projects, product development and R&D. Our customers that shut down either due to government mandates or being deemed non-essential have provided us with their estimated restart dates and restart build rates. While these are challenging times, we plan to emerge from this crisis a stronger company." Given the customer uncertainty around build rates, the company stopped making specific projections for the year. The company will provide a further update during the Q1 earnings call in May.
Commercial Vehicle Group sees Q1 revenue $185M-$190M, consensus $194.06M » 18:3404/2804/28/20
Sees Q1 adjusted…
Sees Q1 adjusted Operating Income, excluding impairments and other adjustments $6M-$9M compared to $18M last year. The company stated, "The impact of the COVID-19 pandemic on CVG's end markets, our operations and financial affairs has been swift and significant and has temporarily impacted over half of the company's business. Other parts of the company were not impacted - the company's aftermarket, ecommerce material handling, and military businesses. We have continued to invest and grow this important part of our company."
Commercial Vehicle Group announces temporary cost reduction measures » 08:0404/1304/13/20
CVG has aggressively…
CVG has aggressively implemented a series of temporary cost reduction measures to further align its cost structure and business practices to the current business environment, preserve liquidity, and protect its workforce. These temporary actions include: 50% reduction of the compensation for CEO, Harold Bevis; 40% reduction of the compensation for the remaining executive leadership team; 20% reduction of base wages for all global salaried personnel through a combination of furloughs and reductions, in accordance with local laws, regulations, and labor agreements; 20% reduction of annual cash retainer compensation for CVG's Board of Directors; Select reduction in workforce and furloughing of production employees; Elimination of discretionary expenses and non-essential capital expenditures; Elimination of 2020 401K matching program; Curtailment of operations at select facilities to align with current demand levels and adhere to state and local government mandates; Reductions in working capital including specific plans to reduce purchases of raw material; Implementation of more aggressive industrial hygiene protocols to protect its workforce; and continuation of key R&D projects with top customers. Compensation reductions will remain in place until conditions improve, while the closure of facilities will vary and continue to align with regulatory mandates. "Our primary focus today is on the well-being of our employees. We do not make furlough and wage reduction decisions lightly and have considered a broad range of options with the goal of avoiding permanent reductions where possible. We believe these prioritization and cost reduction actions will support the financial stability of CVG; will drive significant improvement; and allow us to perform in both the near-term and long-term. We will continue to monitor the situation and we will move swiftly, as appropriate, to add back personnel, increase production, increase R&D, or right-size costs further," continued Bevis. "Based on our current financial position, we believe we have sufficient liquidity to fund our operations, maintain strategic R&D and capex programs in key areas, and make other prudent investments in the business. In addition, we are acutely focused on ensuring we are meeting our customers' needs and are having ongoing dialogues to understand supply chain outlooks. We are continuing to deliver essential parts to customers. This is a fluid situation and we will react quickly to any changes."
Commercial Vehicle Group withdraws FY20 guidance » 08:0204/1304/13/20
The impact of the…
The impact of the COVID-19 pandemic on CVG's end markets and its facilities remains uncertain. At this time, it is challenging to accurately estimate the full impact both near-term and longer term, therefore the company is withdrawing its 2020 guidance related to North American Class 5-8 truck and global construction production.
|Over a quarter ago|
Commercial Vehicle Group names Harold Bevis as CEO, succeeding Patrick Miller » 09:0203/2303/23/20
Commercial Vehicle Group…
Commercial Vehicle Group announced that the independent members of its Board of Directors has unanimously appointed Harold Bevis as President and CEO, replacing Patrick Miller effective immediately. Bevis will also remain a Director of the Company. Bevis, who most recently served as Chairman and CEO of Boxlight, has served as an independent director on CVG's Board of Directors since June 2014.
Commercial Vehicle Group price target lowered to $5 from $8.50 at Barrington » 12:2703/1803/18/20
Barrington analyst Christopher Howe lowered the firm's price target on Commercial Vehicle Group to $5 from $8.50 and reiterates an Outperform rating on the shares after the company's Q4 results came in below expectations. The recent step change in build production in Q4, along with the ACT outlook for 2020, "has validated a sense of caution," Howe tells investors in a post-earnings research note. The analyst, however, still believes Commercial Vehicle Group is in the early innings of realizing its long-term potential within the Electrical Systems segment and its potential adjacencies.
Commercial Vehicle Group: China unit operating at ~ 70% of expected levels » 16:4803/1603/16/20
The company said,…
The company said, "Management estimates that 2020 North American Class 8 truck production may decline by 35% to 42% (to 200,000 to 225,000 production units), North American Class 5-7 production may decline by 15% to 20%, and the construction markets the company serves in North America, Europe and Asia Pacific may decline by 10 to 15%. Additionally, while we experienced unplanned downtime during the first quarter in our China operation due to the COVID-19 virus, we have seen steady improvements in our ability to produce in that operation and are currently operating at approximately 70% of expected levels. Due to inventory levels built prior to the Chinese New Year, sales losses in the first quarter have been immaterial and early indications are that the customers intend to make up lost production throughout the year. In other regions, the situation is dynamic. We are implementing preventative measures where possible while monitoring conditions closely."
Commercial Vehicle Group reports Q4 EPS (24c), consensus 19c » 16:4603/1603/16/20
Reports Q4 revenue…
Reports Q4 revenue $189.5M, consensus $214.2M.
Commercial Vehicle Group management to meet with Barrington » 07:1211/2111/21/19
Meeting to be held in…
Meeting to be held in Portland, OR on November 21 hosted by Barrington.
Commercial Vehicle Group price target raised to $8.50 from $7.50 at Barrington » 13:4709/1809/18/19
Barrington analyst Chris…
Barrington analyst Chris Howe raised his price target for Commercial Vehicle Group to $8.50 from $7.50 after the company announced the acquisition of First Source Electronics for $44.75M. The analyst raised his estimates to account for the acquisition, which he notes is expected to be accretive to operating income, with margins in line with the Electrical Systems segment, and earnings per share in year one. Howe reiterates an Outperform rating on Commercial Vehicle Group shares.