Question-and-Answer Session
Operator
(Operator Instructions.) Your first question comes from Brian Johnson – Barclays Capital.
Brian Johnson – Barclays Capital
Congratulations to Carsten on his big move. With your new segment structure a couple of things. One, how does it tie back to the aspirations you had for CVS margin in the low teens as we think about each of the segments now that we see very good profitability in industrial and challenge profitability in commercial?
Charles G. McClure
I'll start and I'll kind of throw it over to Jay to get into kind of the details. But obviously as we move forward this is the continued transformation of the company to the commercial vehicle side. As we look at that right now as you look at the margins, I think it's safe to say on the commercial truck side a lot of that is in markets that have been down significantly for quite a long period of time, specifically the North American and European markets.
And as we look at the other industrial and the aftermarket in trailers, part of it we kind of move forward to future EBITDA targets is to really make sure we've got the proper focus across those products. So as I look at it specifically in the commercial truck side, I think it's somewhat driven because of the volumes you're seeing in the European and North American markets.
Jeffrey A. Craig
I would just add to what Chip stated obviously the industrial and aftermarket trailer business we think are fairly well situated to reap our long-term EBITDA margin targets. But as you look at the commercial vehicle OE business, the North American market has been down here for almost three years, so there's difficult historical comparison.
And as you recall, we have done some restructuring of the North American business, opened a new Mexican manufacturing facility, and if you look at our CapEx for this year and the previous year, invested significant capital into upgrading our plants, both in North America and Europe. And I would also just mention that we've previously stated that the European business was a struggle for us and even at peak volumes, although it was turning around.
We knew we had quite a bit of work to do behind the scenes to improve that business, we've continued to do that, most recently over the last 12 months moving the Performance Plus oversight office to our European headquarters, and aggressively focused on improving the margins in that business over the last year. So we know the target that we've set out externally and we're continuing to think to make very strong forward progress.
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