Commercial Vehicle Group, Inc. (CVGI) has reported a 75.50 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.63 million, or $0.02 a share in the quarter, compared with $2.56 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.52 million, or $0.08 a share compared with $3.05 million or $0.10 a share, a year ago. Revenue during the quarter dropped 3.81 percent to $173.42 million from $180.29 million in the previous year period. Gross margin for the quarter contracted 186 basis points over the previous year period to 12.40 percent. Total expenses were 97.37 percent of quarterly revenues, up from 95.24 percent for the same period last year. That has resulted in a contraction of 213 basis points in operating margin to 2.63 percent.
Operating income for the quarter was $4.56 million, compared with $8.58 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8.01 million compared to $9.47 million in the prior year period. At the same time, adjusted operating margin contracted 63 basis points in the quarter to 4.62 percent from 5.25 percent in the last year period.
Patrick Miller, president and chief executive officer, stated, "In comparison to Q3 and Q4 of 2016, we are seeing top line improvements resulting from better than expected order levels in heavy duty truck production in North America as well as the strengthening of the global construction segments we serve. Generally, our customers who produce large construction machinery including earth moving, mining, and paving are driving higher orders. We are encouraged by these positive market dynamics."
Working capital drops significantly
Commercial Vehicle Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $139.01 million as at Mar. 31, 2017, down 31.09 percent or $62.72 million from $201.73 million on Mar. 31, 2016. Current ratio was at 1.74 as on Mar. 31, 2017, down from 2.77 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 72 days for the last year period. Days sales outstanding went down to 63 days for the quarter compared with 67 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 38 for the same period last year.
Debt remains almost stable
Total debt of Commercial Vehicle Group, Inc. remained almost stable for the quarter at $233.35 million, when compared with the last year period. Short-term debt stood at $66.34 million as on Mar. 31, 2017. Total debt was 52.30 percent of total assets as on Mar. 31, 2017, compared with 53.24 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 3.33 as on Mar. 31, 2017, when compared with the last year. Interest coverage ratio deteriorated to 1 for the quarter from 1.77 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
