Commercial Vehicle Group, Inc. (the “company” or “CVG”) (NASDAQ: CVGI) announced today preliminary financial results for the quarter ended March 31, 2020 and provided additional comments on the company’s performance during the COVID-19 pandemic.
Harold Bevis, Chief Executive Officer and President, stated, “The impact of the COVID-19 pandemic on CVG’s end markets, our operations and financial affairs has been swift and significant and has temporarily impacted over half of the company’s business. Other parts of the company were not impacted – the company’s aftermarket, ecommerce material handling, and military businesses. We have continued to invest and grow this important part of our company.”
Mr. Bevis continued, “The company was swift to deal with the temporary halting of certain parts of the business beginning in late March and aligned our cost structure accordingly in line with demand curtailment. The suddenness wiped out our profits in the very short term and brought us to cash flow breakeven, but we are aligning the organization to generate EBITDA and cash flow at this new level albeit at lower rates than pre-COVID. The timespan and pace of the post-COVID recovery is uncertain today, but all of our major customers in all of the countries we operate in have now announced reopening dates. We are now gearing up to restart our operations. We have taken many permanent restructuring decisions during this downturn and are permanently lowering the company’s cost structure.
“Fighting back against COVID-19, we started up a mask production operation at our plant in Saltillo, Mexico and provided masks to our plants, employees and their families. We are observant of COVID containment regimens and are following them in our facilities. We wish success to those researching medical advancements to beat this killer virus.”
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