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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.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Seating Revenue
CapyFin.comGlobal Electrical Systems Revenue
CapyFin.com 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