February 14, 2013
Commercial Vehicle Group, Inc. reported revenues of $173.4 million for the fourth quarter of 2012 Thursday, down 23.2 percent compared to $225.8 million for the prior-year period.
“Our fourth quarter revenues declined compared to both the prior-year quarter and the third quarter of 2012 reflecting both lower North American truck production levels and construction equipment build rates,” says Mervin Dunn, President and CEO of Commercial Vehicle Group. “Production in the North American Class 8 market declined approximately 23 percent compared to the fourth quarter of 2011 and our construction market revenues declined approximately 29 percent for this same period. We also saw a decline in orders for both our military and aftermarket products, which further impacted our results.”
Operating loss for the fourth quarter was $2.3 million compared to operating income of $16.1 million for the fourth quarter of 2011. Net loss was $5.6 million for the fourth quarter, compared to net income of $10.1 million the prior-year quarter.
“We believe the weak market conditions we experienced in the third and fourth quarters of 2012 are short-term,” Dunn says. “As a result, we responded appropriately by reducing labor and other costs to minimize the impact of lower volumes while, at the same time, not making major cut backs in areas that affect our five-year strategic plan of growth and diversification.”
Revenues for the year 2012 climbed 3.1 percent over 2011, due primarily to the overall increase in the North American Class 8 market.
Operating income for the year ended December 31, 2012was $44.1 million compared to $49.1 million for the prior year. Net income for the year ended at $50.1 million, compared to $18.6 million in the prior year, primarily as a result of the income tax benefit of $27 million recorded for 2012.
Commercial Vehicle Group, Inc. is a supplier of a full range of cab related products and systems for the global commercial vehicle market, including the Class 8 truck market, the construction, military, bus and agriculture markets and the specialty transportation markets. Products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems – including instrument panels, door panels, headliners, cabinetry and floor systems – mirrors and wiper systems specifically designed for applications in commercial vehicles.