CVG Q2 2022 Earnings Report
Key Takeaways
CVG reported a decrease in sales by 2.8% to $250.8 million in the second quarter of 2022. Despite a challenging operating environment, the company made progress on multiple fronts including improved pricing, restructuring, and new business wins. The company expects improved profitability and free cash flow in the second half of 2022.
Sales decreased by 2.8% to $250.8 million.
Operating income was $6.2 million, with an adjusted operating income of $8.1 million.
Net income was $2.5 million, or $0.08 per diluted share, with an adjusted net income of $4.3 million, or $0.13 per diluted share.
New pricing expected to benefit profitability by approximately $15 million in the second half of 2022.
CVG
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CVG Revenue by Segment
Forward Guidance
CVG expects profits and free cash flow to improve sequentially in the second half of 2022. The company expects full year debt paydown to be $25 million to $40 million.
Positive Outlook
- Improved pricing on existing business.
- Execution of restructuring plan with associated cost savings.
- Winning new business in targeted areas, especially in the Electric Vehicle market.
- A re-start of its profitable China business.
- Stabilization of the Company’s business in the Ukraine and Czech Republic region.
Challenges Ahead
- Sudden pullback by an industry leader in the e-commerce fulfillment arena.
- Difficult operating environment with parts and labor shortages.
- Continued inflation.
- Global supply chain constraints.
- Warehouse automation industry below trendline due to an industry leader's actions.