Commercial Vehicle Group Inc. Q2 2009 Earnings Call Transcript

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2009-08-05 11:45:40.0

Tags: Volvo, Call Transcript, Earnings, Commercial Vehicle Group Inc., Daimler, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from David Leikar – Robert W. Baird.

David Leikar – Robert W. Baird

I want to walk through the revenue number here a little bit as we go forward and just get an understanding of the new business that you've announced here recently, and then what's going on with the end markets.

If you take a look at the Nissan, the Volvo, and the Daimler programs in aggregate, that's what $22 to $24 million. I think most of those are expected to be fully ramped up around this time. How much of that are you actually able to realize at the moment given where the end markets are?

Chad M. Utrup

Well I think the Nissan Diesel one you mentioned that doesn't start until towards the end of this year so I'm not sure that one is included, and the other two that you mentioned, David, sorry?

David Leikar – Robert W. Baird

The Volvo and the Daimler.

Chad M. Utrup

Oh, the Volvo and the Daimler. The Volvo piece is in the process of ramping up. It ramped up probably midway through the second quarter I believe. Merv, wasn't that the date; somewhere around the middle? So obviously volumes are down but I would say roughly we're seeing maybe half of that impact with the timing and the ramp up. And something similar with the Daimler piece as well, probably more along the lines of maybe half or towards the end of the second quarter, David.

David Leikar – Robert W. Baird

That's what fell into your second quarter number?

Chad M. Utrup

Yes, I don't have exact numbers with me but yes, those were the timing. I mean, the Volvo piece and the Daimler piece I think fell –

David Leikar – Robert W. Baird

Then the $6 million for Daimler and $8 million for Volvo I think they really set it; that was that current production volumes. Are those still accurate numbers on a run rate going forward from where we are?

Chad M. Utrup

Yes, I think at the time the current thought was we were in that 120 to130 range so maybe it's down a 10% or something like that, David.

David Leikar – Robert W. Baird

Are there any other items there plus or minus excluding the end market that would move revenue one way or the other in the second half of the year versus the second quarter?

 

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