Commercial Vehicle Group, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Production Guidance for the Full Year 2018; Provides Effective Tax Rate Guidance for the Year 2018
August 06, 2018 at 04:05 pm EDT
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Commercial Vehicle Group, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenues of $233,391,000 compared to $195,127,000 an increase of 19.6%. Operating income was $21,124,000 compared to $7,568,000 a year ago. Income before provision for income taxes was $17,696,000 compared to $828,000 a year ago. Net income was $13,195,000 or $0.43 per diluted share compared to $131,000 or $0.00 per diluted share a year ago. The increase in revenues period-over-period reflects higher heavy-duty truck production in North America and improvement in the global construction markets company serve. The increase in operating income period-over-period is primarily attributable to the increase in sales volume. Commodity and other raw material inflationary pressures, as well as difficult labor markets, adversely affected operating income. Cost control and cost recovery initiatives, including pricing adjustments, reduced the impact of these cost pressures on operating income. For the second quarter 2018, capital expenditures were $3.4 million.
For the six months, the company reported revenues of $449,126,000 compared to $368,543,000 a year ago. Operating income was $36,610,000 compared to $12,125,000 a year ago. Income before provision for income taxes was $31,222,000 compared to $821,000 a year ago. Net income was $23,048,000 or $0.75 per diluted share compared to $760,000 or $0.03 per diluted share a year ago. Adjusted operating income was $16,453,000 compared to $18,392,000 a year ago. Adjusted net income was $4,895,000 or $0.16 per basic and diluted share compared to $6,044,000 or $0.20 per basic and diluted share a year ago.
Management estimates that the 2018 North American Class 8 truck production will be in the range of 300,000 to 325,000 units, as compared to 256,000 units in 2017; North American Class 5-7 production is expected to be up slightly year-over-year. Company believes that construction equipment production in the markets Company serve in Europe, Asia, and North America is strong.
For the year 2018, the company expects continue to model a 25% to 30% effective tax rate for the year.
Commercial Vehicle Group, Inc. is a global provider of systems, assemblies and components to the global commercial vehicle market, the electric vehicle market, and the industrial automation markets. The Company delivers solutions to complex design, engineering, and manufacturing problems. The Company's segments include Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. The Vehicle Solutions segment designs, manufactures and sells commercial vehicle seats and plastic and trim components. The Electrical Systems segment designs, manufactures and sells cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications. The Aftermarket & Accessories segment designs, manufactures, and sells seats and components, commercial vehicle accessories, and office seats. The Industrial Automation segment designs, manufactures and sells warehouse automation subsystems.
Commercial Vehicle Group, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Production Guidance for the Full Year 2018; Provides Effective Tax Rate Guidance for the Year 2018