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Commercial Vehicle Group Inc. reported net income of $7.2 million for second-quarter 2019, or 23 cents per share, down 46% compared with net income of $13.2 million in the prior-year period, or 43 cents per share.
Second-quarter 2019 revenue was up 4.2%, to $243.2 million from $233.4 million in the 2018 period.
The increase in revenue reflects higher heavy- and medium-duty truck production in North America, partially offset by a production decrease in Asian construction equipment.
CVG, based in New Albany, Ohio, supplies electrical wire harnesses, seating systems and other cab-related products for global commercial vehicle markets.
“Ongoing momentum in the North American heavy- and medium-duty truck markets drove sales growth of 4% during the quarter,” CEO Patrick Miller said. “We continue to make strategic investments in the business, including manufacturing capacity expansion in our electrical systems segment and in corporate development activities associated with the recent strategic reorganization of the business. We believe full-year 2019 revenues will be slightly higher than 2018 levels, barring any unexpected market shocks.”
Operating income for second-quarter 2019 was $17.2 million compared with $20.9 million in the prior-year period, the company said, adding the decrease primarily was due to inflationary pressure on material and labor costs, and an increase in selling, general and administrative expenses.
Revenue for the electrical systems segment was $141.9 million compared with $134.6 million for the 2018 period, an increase of 5.5% primarily resulting from higher North American truck production, the company said.
Revenue for the global seating segment was $105.3 million compared with $102.2 million in the year-ago period, an increase of 3%, again due to North American truck production.