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Mar 31, 2021
CVG Q1 2021 Earnings Report
Reported record sales and increased profitability due to strong demand in legacy and target markets, along with new business awards.
Key Takeaways
CVG reported record first-quarter sales of $245.1 million, a 31.0% increase year-over-year, driven by new business wins and demand growth in warehouse automation and global vehicle markets. The company's net income increased to $8.5 million, or $0.26 per diluted share, and secured an estimated $100 million of net new annualized business.
Revenue increased by 31.0% to $245.1 million due to new business, warehouse automation, and global vehicle market growth.
Operating income rose to $15.4 million, driven by higher sales volume and the absence of a prior-year impairment.
Net income reached $8.5 million, or $0.26 per diluted share, a significant increase from the previous year.
Warehouse automation revenues grew to $41.9 million, representing 17.1% of total sales.
Revenue by Segment
Forward Guidance
The company anticipates some customers moderating their production outlooks due to semiconductor chip and material shortages, as well as cost inflation from supply chain dislocations. Demand and orders are robust, but headwinds exist regarding increasing production rates, raw material inflation, labor inflation, and freight inflation.
Positive Outlook
- Demand outlook for legacy vehicle markets is favorable.
- North American Class 8 truck production levels are expected to increase.
- Demand outlook for the electric vehicle market is favorable.
- Adoption rates for electric vehicles are forecast to increase.
- Demand for warehouse automation products is expected to grow approximately 14% annually through 2026.
Challenges Ahead
- Customers moderating production outlooks.
- Semiconductor chip and material shortages.
- Cost inflation due to dislocations in the supply chain.
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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