- Commercial Vehicle Group Inc CVGI said it had finalized the renegotiation of new pricing agreements with several of its customers.
- The company expects the new pricing, effective July 1, to increase run-rate profits by more than $30 million and increase the cash flow as well.
- CVGI anticipates 2H22 to immediately benefit from an additional ~$15 million of increased pricing, resulting in improved profitability and free cash flow. The company expects the favorable impact to last beyond 2022 as well.
- In addition, the company has one more primary agreement to be renegotiated that does not expire until late 2023.
- CEO Harold Bevis stated, "We continue to win new business and have organically won our first electrical harness program in the aerospace industry. This entry into the aerospace industry adds to the company's growing new business program, which has had great success in the global electric vehicle industry."
- Price Action: CVGI shares are trading higher by 6.75% at $6.01 on the last check Wednesday.
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