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Dec 31, 2023
CVG Q4 2023 Earnings Report
Reported a decrease in revenue but an increase in net income, with mixed segment performance.
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
CVG
CVG Revenue by Segment
Revenue by Segment
Global Seating Revenue
CapyFin.comGlobal Electrical Systems Revenue
CapyFin.com 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