Commercial Vehicle Group Reports Strong Third Quarter
Component supplier Commercial Vehicle Group Inc. reported stronger revenue and net income for the third quarter as its two key segments improved.
Net income for the period ended Sept. 30 was $4.8 million, or 16 cents per share, compared with $1.1 million, or 4 cents, a year ago.
Revenue climbed to $198.3 million compared with $153.6 million in the prior-year period, an increase of 29.1%.
The increase in revenue reflects higher heavy-duty truck production in North America and improvement in the global construction markets. Foreign currency translation favorably impacted revenue by $1.7 million, or 1.1% when compared with the prior-year quarter the New Albany, Ohio-based company reported.
Revenue for the global truck and bus segment was $122 million compared with $96 million in the 2016 period, an increase of 27.1%
“We have increased our estimate for the 2017 North America Class 8 build to be in the 235,000 to 255,000 unit range from our earlier guidance of 220,000 to 240,000,” Commercial Vehicle Group CEO Patrick Miller said in a statement.
Also, the company reported it has been managing its working capital effectively.
“More specifically, accounts receivable and inventory net of accounts payable is up only 10% from the year-ago period on the 29% increase in sales. This working capital management is in part responsible for our reduced borrowings and therefore lower interest expense,” Chief Financial Officer Tim Trenary said in the statement.
The company supplies cab-related products and systems for the global commercial vehicle market, including the medium- and heavy-duty truck market, and the medium- and heavy-construction vehicle markets.
