General

Company car group 8% higher on new prices for top two customers

Company car group 8% higher on new prices for top two customers

By Josh Beckerman

The shares of Commercial Vehicle Group Inc. rose 8% to $7.27 as it reached a mutual agreement with its two largest customers on new pricing.

The two customers together represent about 30% of the company's revenue and previously had "no profit or less." The new pricing is expected to significantly improve the company's earnings.

The company's business includes warehouse automation and robotic assemblies, electric vehicle assemblies, electrical wiring harnesses, seating systems and plastic products for markets such as e-commerce, warehousing and industrial and recreational vehicles.

Commercial Vehicle Group, which is expected to report earnings on May 5, said on February 28 it was facing a "challenging cost environment" and was renegotiating some deals.

Write to Josh Beckerman at [email protected]