Cab-related products and systems supplier Commercial Vehicle Group Inc. reported net income and revenue fell in the third quarter amid significantly lower heavy-duty truck production in North America.
Net income for the period ended Sept. 30 plunged 57% to $1.1 million, or 4 cents per share, compared with $2.6 million, or 9 cents, it said.
Third-quarter revenues were $153.6 million, down 24.2% compared with $202.7 million in the prior-year period, as truck manufacturers adjusted production schedules to more closely reflect replacement level orders and excess inventory of new trucks, it said.
Revenues for the global truck and bus segment in the third quarter were $96 million compared to $142.9 million for the prior year period, a decrease of 32.8% primarily resulting from lower North American heavy-duty truck production, compared with the same period in the prior year.
It estimates the 2016 North American Class 8 truck production will be in the range of 215,000 to 225,000 units, down from a near historically high level of 323,000 units in 2015, the company said.
“Our two largest end markets, North American heavy-duty truck and global construction equipment, remain at depressed levels,” CEO Patrick Miller said in a statement. "I continue to be pleased with the response of our operations and support teams to this challenging sales environment — our margins are outperforming historical sales conversions.”
