CVG Q4 2023 Earnings Report
Key Takeaways
CVG reported Q4 2023 results with a revenue decrease of 5.0% to $223.1 million, impacted by a customer strike and reduced demand in some segments. However, net income significantly improved to $23.3 million, or $0.70 per diluted share, compared to a net loss in the prior year. The Electrical Systems segment showed strong revenue growth.
Revenue decreased by 5.0% to $223.1 million due to strike impacts and lower demand in certain segments.
Net income increased to $23.3 million, or $0.70 per diluted share, compared to a net loss of $32.0 million, or $(0.98) per diluted share, in the prior year.
Operating income improved to $5.0 million, up $9.0 million from the previous year.
Electrical Systems segment revenue increased by 19.4%.
CVG
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CVG Revenue by Segment
Forward Guidance
CVG provided its outlook for the full year 2024, expecting net sales between $915 million and $1,015 million and adjusted EBITDA between $60 million and $73 million. This reflects current industry forecasts for North American Class 8 truck builds.
Positive Outlook
- Expects to benefit from growth in Electrical Systems.
- Continued price realization
- New business wins
- Focus on enhancing operational efficiency
- Focus on enhancing quality standards
Challenges Ahead
- Industry forecasts for a lower Class 8 truck build in 2024
- Impact of a strike at a customer facility
- Softer fourth quarter revenues
- Reduced demand in Vehicle Solutions segment
- Reduced demand in Aftermarket segment
Revenue & Expenses
Visualization of income flow from segment revenue to net income