NEW ALBANY, Ohio — Commercial Vehicle Group (CVG) has reported revenues of $158.1 million for the fourth quarter of 2010, up 16 percent compared to $135.7 million for the prior-year period. Operating income was $5.4 million and net income was $4 million, or 14 cents per diluted share, for the fourth quarter of 2010
The company said revenues for the quarter compared to the prior-year period increased by approximately $22.3 million, due primarily to the increase in the global construction market.
"Our revenues for the fourth quarter of 2010 were the highest levels we have seen since the fourth quarter of 2008, offering further evidence of our end-market recovery and new business achievements," said Mervin Dunn, president and CEO. "Despite an expected reduction in our military business this past quarter, we continue to see upward movement in our other key end-markets such as heavy-duty truck and construction. These trends, along with our recent acquisition of Bostrom Seating, are positive signs of our flexibility and financial strength as we move forward."
Revenues for the year ended Dec. 31, 2010, were $597.8 million, an increase of $139.2 million, or 30 percent, compared to the prior-year period, due primarily to the increase in both the North American Class 8 heavy-duty truck market and global construction market, along with improvements in the general global economic conditions in many of the company’s key end-markets. Excluding restructuring and impairment charges, operating income for the 12-month period ended December 31, 2010, improved to $18.4 million, compared to an operating loss of ($38.6) million for the prior year. This increase in operating income represents an improvement of $57 million compared to the prior-year period on $139.2 million of incremental revenues. Net income for the 12-month period was $6.5 million, or 24 cents per diluted share, compared to a net loss of ($81.5) million, or ($3.74) per diluted share, in the prior year.
Net debt (calculated as total debt less $42.6 million in cash) was $122.4 million at Dec. 31, 2010, as compared to $153.1 million at Dec. 31, 2009.
"Year-over-year, our results continue to show the positive impact of the cost and realignment initiatives we have taken over the past two years. Sequentially, our fourth quarter of 2010 was impacted by the expected reduction in military revenues of approximately $4 million compared to the third quarter, which was offset by favorable gains in our heavy-duty truck and construction markets," said Chad Utrup, CFO of Commercial Vehicle Group. "Also included in our fourth quarter 2010 results were $0.2 million of expense related to our recently announced Bostrom acquisition and $0.6 million of expense related to new product initiatives and future programs. While these expenses impact us in the short term, they are obviously important for our continued growth and strategic objectives."
