Commercial Vehicle Group Inc. (CVGI) saw a rise of 6.09% on Thursday to close the trading at $5.29 from a previous close of $4.99.
The company this week made its business updates and progress strategies public sharing developments in several areas. Those include business growth, leadership, cash and expenses measures taken during 2020.
The company also took several steps in 2020 to cut the costs temporarily which also include compensation adjustments by employees and Board members. The company announced that it has started restoring compensation to desired levels.
During the period, company paid down $20 million of its debt by generating and sustaining enough cahflow to repay that amount immediately. Company currently has $156 million of debt in Term Loan B while have not to pay any revolving loan after that payment of $20 million. It also has a receivable amount of $55 million globally, which results in a net debt balance of $101 million while having more than $100 million of liquidity.
CVGI continue integrating business operations and achieving the set goals of diversifying its portfolio while expanding the business. In the process of diversification, the company in 2019 purchased First Resource Electronics, a leading manufacturer of cable assemblies, electro-mechanical assemblies, and control panels. The company is in initial phase of recommencing its merger and acquisition plans to achieve certain goals. Those include expanding the portfolio, lessening the impact of being cyclical nature of commercial vehicle industry on company performance and make the company’s value propositions more enhanced.
The commercial vehicle markets worldwide impacted by the covid have now been recovering now. But the pace of recovery is slow as the overall demand is still below pre-covid levels. On the other hand, industry market publisher ACT Research has raised its North American production forecast for current as well as next two years. CVGI is going through a head hunting for certain business segments and will remain investing in its key business markets.