Loading...
•
Dec 31, 2021
CVG Q4 2021 Earnings Report
Reported fourth quarter results with revenue increase and improved profitability.
Key Takeaways
CVG reported Q4 2021 results with a 6% increase in revenue to $228.9 million, driven by material inflation cost pass-through and a higher truck build rate in North America. Net income increased to $2.6 million, or $0.08 per diluted share, and adjusted net income was $4.1 million, or $0.13 per diluted share.
Revenue increased by 6.0% to $228.9 million due to material inflation cost pass-through.
Operating income rose by 30.0% to $6.5 million, driven by lower SG&A expenses.
Net income was $2.6 million, or $0.08 per diluted share, an increase of $0.21 per diluted share.
Adjusted EBITDA decreased slightly to $12.9 million due to lag in price-cost offsets and startup costs from new business wins.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Electrical Systems Revenue
CapyFin.com Forward Guidance
The company expects cost inflation and the impact of certain legacy contracts that are still in place as well as supply chain disruptions to be headwinds to our results through the first half of 2022, before showing improvement in the second half of the year. We are estimating the industry will be able to make approximately 270,000 trucks, or roughly flat to 2021.
Positive Outlook
- Success with our new business agenda
- Expansion into new end markets like electric vehicles
- Aggressive plan with our aftermarket business to increase profitable revenue growth.
- Estimate the industry will be able to make approximately 270,000 trucks, or roughly flat to 2021.
- Expect 3 years of modestly rising production.
Challenges Ahead
- Cost inflation
- Impact of certain legacy contracts that are still in place
- Supply chain disruptions
- New business startup costs to continue at a high rate
- Conservative stance on the 2022 North America Class 8 truck build rate.