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Jun 30, 2021
CVG Q2 2021 Earnings Report
Reported second quarter results with revenue of $257.9 million and EPS of $0.16.
Key Takeaways
CVG reported strong second-quarter results, driven by new business wins and demand growth, particularly in Warehouse Automation and North American OEM truck markets. The company secured an estimated $129 million of net new annualized business year-to-date and refinanced its debt, leading to interest expense reduction.
Revenue increased by 103.3% year-over-year to $257.9 million, driven by a weak prior-year comparable, new business wins in Warehouse Automation, and demand growth in North American OEM truck.
Operating income rose by $26.8 million to $16.3 million due to a weak prior-year comparable and higher sales volume.
Warehouse automation revenues grew to $52.3 million, representing 20.3% of consolidated sales.
The company refinanced its debt, providing up to $200 million of borrowing capacity and reducing interest expense by $3.1 million per quarter.
Revenue by Segment
Forward Guidance
The demand outlook for the company's key markets are favorable.
Positive Outlook
- North American Class 8 truck production levels are expected to be at 314,000 units and Class 5-7 production are expected to be at 250,000 units.
- The demand outlook for the Company’s entrance into the electric vehicle market is favorable.
- Many global electric vehicle platforms are underway across the spectrum of vehicle types.
- According to LogisticsIQ, demand for warehouse automation products is expected to grow approximately 14% annually through 2026.
- This outlook supports demand for the Company's warehouse automation products.
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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