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Mar 31, 2020
CVG Q1 2020 Earnings Report
Reported financial results with a net loss of $24.6 million and revenues of $187.1 million.
Key Takeaways
Commercial Vehicle Group reported a decrease in revenues to $187.1 million compared to $243.2 million in the prior year period, and a net loss of $24.6 million, or $0.80 per diluted share. The results reflect lower heavy-duty truck production and were impacted by special charges including impairment expenses and costs associated with investigation and CEO transition. The company achieved $114 million in liquidity through disciplined cash management.
Revenues decreased by 23.1% to $187.1 million due to lower heavy-duty truck production and global construction market downturn.
Net loss was $24.6 million, or $0.80 per diluted share, compared to net income of $10.0 million in the prior year period.
Operating loss was $26.5 million, impacted by lower sales volume and $28.9 million of special charges.
Company had $114.2 million in liquidity, including $58.1 million in cash and $56.1 million available from the revolving credit facility.
Revenue by Segment
Forward Guidance
The company expects revenues for the second quarter of 2020 to be significantly lower than the first quarter of 2020 due to an expected decline of 65% to 75% in North American heavy-duty and medium-duty truck build.
Challenges Ahead
- Second quarter 2020 North American heavy-duty and medium-duty truck build is expected to decline 65% to 75%.
- Revenues for the three months ending June 30, 2020 are expected to be significantly lower than the three months ending March 31, 2020.
- OEM customer ordering patterns are rapidly changing.
- General uncertainties around the impacts of COVID-19 on businesses.
- Government-mandated shut downs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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