NEW ALBANY, Ohio, May 13, 2019 /PRNewswire/ -- Commercial Vehicle Group, Inc. (the "Company" or "CVG") (CVGI) today announced an expanded presence in truck and construction seating in East Asia following new customer wins totaling approximately $10 to 13 million in annual revenue, at full run rate.
Patrick Miller, President and Chief Executive Officer, commented, "As market demand for higher performance seats is increasing, our efforts to expand our presence in truck and construction seating in East Asia are bearing fruit. We remain well positioned to capture further growth in this attractive region through our continued focus on product innovation and superior quality."
The Company announced that CVG Shanghai entered into a supply agreement for a seat product variant based on its World Platform ("WP") seat solution for Sany, a global manufacturer of industry-leading truck, construction and mining equipment, and port and oil drilling machinery. CVG Shanghai began shipping seats to Sany in late 2018.
The WP seat features a full range of features and adjustments including memory settings and heat/vent. As truck manufacturers in China have moved to benchmarking popular European platforms, the highest-end truck market in the world, those same features are increasingly being integrated into offerings in the region.
CVG also announced that it has been awarded seat business for the next generation excavator platform from Zoomlion, a global manufacturer of construction machinery. The seat product comes from KAB Seating's 'SCIOX' range. With an anticipated mid-year 2019 launch, the newly developed machines will be sold into the domestic China market and are also expected to be exported for sale in North America.
SCIOX, the newest seat to the KAB range, is a modular, entry-mid level seating range that has been developed for users of agricultural and construction vehicles. Extensive research and customer feedback were used to design and engineer the SCIOX seat to offer a best value solution with premium durability and sculpted cushions to maintain comfort all day long, in addition to the air suspension system that offers the driver protection from vibration.
Further, CVG also announced that it has been engaged by Hyundai to supply CVG's 600 series product portfolio for Hyundai's new model excavator targeting the domestic Korean market. The 600 series is a modular design integrating styling and adjustability to enhance operator comfort and aesthetic appeal in the cabin.
Mr. Miller continued, "We are pleased to continue our growth in truck and construction seating in East Asia and expect these opportunities will result in incremental sales of approximately $10 to 13 million annually."
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. (through its subsidiaries) is a leading supplier of electrical wire harnesses, seating systems, and a full range of other cab related products for the global commercial vehicle markets, including the medium- and heavy-duty truck, medium-and heavy-construction vehicle, military, bus, agriculture, specialty transportation, mining, industrial equipment and off-road recreational markets. Information about the Company and its products is available on the internet at www.cvgrp.com.
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "anticipate", "plan", "expect", "intend", "will", "should", "could", "would", "project", "continue", "likely", and similar expressions. In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to its plans to improve financial results and enhance the Company, the future of the Company's end markets, including Class 8 and Class 5-7 North America truck build rates and performance of the global construction equipment business, expected cost savings, the Company's initiatives to address customer needs, organic growth, the Company's plans to focus on certain segments and markets and the Company's financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the medium- and heavy-duty truck markets, construction, agriculture, aftermarket, military, bus and other markets; (v) the Company's failure to complete or successfully integrate strategic acquisitions; (vi) the Company's ability to recognize synergies from the reorganization of the segments; (vii) the Company's failure to successfully manage any divestitures; (viii) the impact of changes in governmental regulations on the Company's customers or on its business; (ix) the loss of business from a major customer, a collection of smaller customers or the discontinuation of particular commercial vehicle platforms; (x) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (xi) the Company's ability to comply with the financial covenants in its debt facilities; (xii) fluctuation in interest rates relating to the Company's debt facilities; (xiii) the Company's ability to realize the benefits of its cost reduction and strategic initiatives; (xiv) a material weakness in our internal control over financial reporting which could, if not remediated, result in material misstatements in our financial statements; (xv) volatility and cyclicality in the commercial vehicle market adversely affecting us; (xvi) the geographic profile of our taxable income and changes in valuation of our deferred tax assets and liabilities impacting our effective tax rate; (xvii) changes to domestic manufacturing initiatives; and (xviii) implementation of tax or other changes, by the United States or other international jurisdictions, related to products manufactured in one or more jurisdictions where the Company does business; and (xix) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2018. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
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