Commercial Vehicle Group Inc. Q2 2008 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-08-25 14:51:18.0

Tags: Commercial Vehicle Group Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of David Leiker. Please proceed.

David Leiker- Robert W. Baird & Co.

Good morning.

Chad Utrup

Hi, David.

David Leiker- Robert W. Baird & Co.

Quite unusual to hear my name correctly!

Chad Utrup

I have the same thing.

David Leiker- Robert W. Baird & Co.

Relative -- I mean, it's kind of a difficult question, but relative to what we were looking for, there was a shortfall in revenue, and I am just trying to get a gauge from you how much relative to what you saw during the quarter was this mix issue with Mexico exports, which doesn't seem to be a whole lot different than Q1 versus some shortfall that particular customers relative to the market such as [Patgar].

Chad Utrup

Well, I think if you look at the total units for the quarter like around 57,000, something like that, for production, that's what was reported. Our estimates for the year, David, included the 40,000 Mexico export units, which was the 13,000 or 14,000 for the first quarter and then initially ratcheting down throughout the rest of the year. So, a sizeable portion of -- I think it was 16,000 actual Mexico export units were built during the quarter, where included in our 40,000 for the year, our estimates would have been maybe around the 10,000 or 11,000 for the second quarter. So, a pretty significant 4,000 or 5,000-unit impact would have been related to those lower content units versus a higher content U.S.-Canadian model.

David Leiker- Robert W. Baird & Co.

Yes. Patgar's mix was a lot different this quarter than a year ago. Is that a factor or is that --?

Chad Utrup

Not that we have seen overall. I am looking at it from a high level, but it wasn't as significant as probably the Mexico export shift for us.

David Leiker- Robert W. Baird & Co.

Okay. And then we talked about the contribution margins. Where to -- I guess, the three other things here, just aftermarket business, I know you are putting some initiatives in there. Are you seeing any successes there where they can get us any assistance in terms of how that market is growing for you or how your business into that market is growing?

Chad Utrup

Yes, it has been pretty stable right now as far as the aftermarket that we have seen in North America. It has remained relatively flat for us over the last several quarters. I think Merv mentioned in either the last quarter or the quarter before we have placed an additional -- or maybe it was at the Investor Day -- we have placed more emphasis and put more of an infrastructure around that aftermarket business to grow that, but the overall market we have seen has been relatively flat over the last couple of quarters.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here