Component supplier Commercial Vehicle Group Inc. reported a surge in second-quarter net income and its highest revenue since 2012 amid record heavy-duty truck orders and improvement in the global construction markets.
Net income for the period ended June 30 ballooned to $13.2 million, or 43 cents per diluted share. That compared with $100,000 and no earnings per share, a year earlier.
Revenue hit $233.4 million compared with $195.1 million in the 2017 period.
“We had a strong second quarter. The truck production level combined with a healthy global construction market, and pricing adjustments, drove our consolidated revenues for the quarter to the highest level seen since 2012, up 19.6% compared with the same period last year,” CEO Patrick Miller said.
“Heavy-duty truck production was up 19.7% compared with the second quarter of 2017, and heavy-duty truck orders more than doubled in June compared with the same month last year,” he said.
In addition, the New Albany, Ohio-based company noted actions underway to reduce the impact of the difficult labor markets and the effect of commodity and other raw material inflationary pressures are bearing fruit.
The company reported liquidity of $108 million at the end of the quarter: $45 million of cash and $63 million of availability from its asset-based revolver fund.
In its earnings release, management estimated 2018 North American Class 8 truck production will be in the range of 300,000 to 325,000 units compared with 256,000 units in 2017.
CVGI is a leading supplier of a full range of cab-related products and systems for the global construction and commercial vehicle markets.