Commercial Group Skids on Q2 loss
Shares of Commercial Vehicle Group, Inc. (Nasdaq: CVGI) went into reverse on news the supplier of system solutions for the commercial vehicle market reported a second-quarter net loss.
The net loss for the quarter ended June 30 was $0.2 million, or $0.01 per share, compared with a net income of $15.5 million, or $0.72 per share, during the same three months of 2006, the New Albany, Ohio-based company reported before the start of trading. Four analysts polled by Thomson Financial were projecting earnings of $0.15 per share.
Revenues also did a U-turn, falling 32.45% to $158.6 million, compared with $234.8 million for the second quarter of 2006. Wall Street was expecting $169.21 million.
“Our 2007 results have been impacted by the slow down in the North American Class 8 heavy truck market,” said Mervin Dunn, President and CEO.
Typically used in construction, Class 8 heavy trucks are among the largest vehicles available.
The company also announced that weak 2007 class 8 truck production has forced it to revise downward its full year earnings guidance. Commercial Vehicle now expects a profit of between $0.18 per share and $0.46 per share, significantly below its previous estimation of profit in the range of $0.85 per share to $1.35 per share and far short of Wall Street’s projected earnings of $1.01 per share.
“We are revising our estimates for 2007 based on where we have seen our product content track through the first six months of this year and where we expect it to be for the remainder of the year,” CFO Chad M. Utrup explained.
At 12:31 p.m. ET the stock was down $1.93, or 11%, to $15.45. The 52-week high of $23.57 was reached on Dec. 5. The 52-week low of $17.00 was set on July 24, 2006.
