Commercial Vehicle Group announces business wins in its global construction and agriculture segment representing $10 – $12 million of annual incremental revenue when fully implemented
Commercial Vehicle Group, Inc. (the “Company” or “CVG”) (Nasdaq: CVGI) today announced additional share gains in its Global Construction and Agriculture Segment. CVG is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including domestic and international construction and agriculture markets. Incremental business within these segments span across multiple product lines, including wiper systems, wire harnesses, and trim components.
CVG supplies wiper systems into most of the industry segments we serve and has previously launched wiper products into the global Agriculture segment. The new wiper system wins are complementary to our existing platforms, and will apply to machines built in Europe and South America in addition to those built in the United States. Sales are projected to increase as additional models and markets are converted to use the new cab design.
In addition to wiper systems, CVG has signed incremental wire harnesses business with numerous Construction and Agriculture Original Equipment Manufacturers (“OEMs”). This new work is the result of expanded North America and European relationships with global construction and agriculture OEMs to win new business in Europe, positioning the Company for future growth with leading manufacturers. We continue to focus on global diversification by capitalizing on established relationships in North America and abroad. The new business addresses a variety of commercial vehicle applications across construction, agriculture, mining, power generation, specialty, and military vehicles. Our harnesses secure cables and wires, and protect them from wear and tear. CVG’s electronic wire harness assemblies are integrated with our electrical distribution systems to provide user control over multiple operational functions and features, and can be processed to meet individual vehicle configurations and delivered in customer sequence, just-in-time.
CVG is continuing its focus in the agriculture segment, and is pleased to announce its selection by a global agriculture OEM as the supplier of additional thermoformed headliners & roof canopies. This follows CVG’s successful 2015 launch of headliners for a separate tractor platform series. Production volume of the new components will ramp up beginning in the first half of 2016.
A majority of the business wins listed start production in 2016, while other components come on line starting in 2017. When fully implemented, all of the new launches represent $10 – $12 million of incremental revenue annually for CVG.
Patrick Miller, President and CEO of Commercial Vehicle Group said, “This business represents our continued focus to drive profitable organic growth through penetration of our addressable agriculture and construction markets. We are earning credibility with our customers in these markets through our performance on current business which is enabling opportunities to expand our support into additional products in our portfolio. This demonstrates our ability to cross sell multiple product capabilities into the global construction and agriculture segment of our business in line with our long term strategy.”
