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Jun 30, 2024
CVG Q2 2024 Earnings Report
CVG reported Q2 2024 results with adjusted EPS of $0.06, reflecting additional restructuring activity and adjusted EBITDA of $10.0 million.
Key Takeaways
CVG's Q2 2024 results were impacted by softening customer demand, operational inefficiencies, and increased restructuring charges. Revenues decreased by 12.3% to $229.9 million, and the company reported a net loss of $1.6 million. Strategic actions, including the sale of the Cab Structures Business, are expected to streamline the product portfolio and strengthen the Vehicle Solutions business.
Revenues decreased by 12.3% to $229.9 million due to softening customer demand.
Operating income decreased by 95.2% to $0.8 million, while adjusted operating income decreased by 65.9% to $5.7 million.
Net loss was $1.6 million, or $(0.05) per diluted share, compared to net income of $10.1 million, or $0.30 per diluted share in the prior year.
Adjusted EBITDA decreased by 51.9% to $10.0 million, with an adjusted EBITDA margin of 4.3%.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Seating Revenue
CapyFin.comGlobal Electrical Systems Revenue
CapyFin.comTrim Systems and Components Revenue
CapyFin.com Forward Guidance
CVG adjusted its full year 2024 guidance to reflect current market trends, including deterioration in global construction and agriculture markets, and is providing an adjusted version of the updated guidance for the Cab Structures and Industrial Automation businesses.
Positive Outlook
- Strategic actions, like the sale of the Cab Structures Business, are expected to position CVG to benefit from anticipated improvement in market conditions.
- Cost reduction and business optimization efforts are ongoing.
- Expects to achieve more stability during the balance of the year.
- Maintained strong track record of procuring new business wins in the quarter.
- Majority of the disposition proceeds will support debt paydown as we further strengthen our balance sheet.
Challenges Ahead
- Construction and agriculture market conditions have deteriorated.
- Witnessed continued softening in the construction and agricultural end markets and reduced volumes in new business win launches.
- Experienced operational inefficiencies in our Vehicle Solutions segment.
- Market dynamics and operational activities weighed on second quarter profitability.
- Adjusting annual guidance ranges for fiscal year 2024 to reflect current market trends to include the deterioration in global construction and agriculture markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income