CVG Reaches Mutual Agreement with Top Two Customers

Rhea-AI Summary

CVG (NASDAQ: CVGI) announced a new pricing agreement with its top two customers, which together represent about 30% of the company's revenue. Previously, these customers generated zero or negative profit for the company. The new pricing, effective this year, is expected to enhance CVG's profitability significantly. This development will be discussed in more detail during the First Quarter 2022 Earnings Call on May 5th at 10am ET, highlighting a crucial advancement in CVG's financial outlook.

Positive

• New pricing agreement with top two customers expected to improve profits.
• The two customers represent approximately 30% of revenue.

Negative

• Previous pricing arrangements resulted in zero profit or losses.

NEW ALBANY, Ohio, April 28, 2022 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI) (the ‘Company’) is pleased to report that it has reached a mutual agreement with its top two customers regarding new pricing.

The new pricing takes effect this year and is expected to be a significant improvement to the Company’s profit.

These two customers collectively represent approximately 30% of the Company’s revenue and were previously at zero profit or less.

The Company looks forward to discussing this positive advancement on the First Quarter 2022 Earnings Call on May 5th at 10am ET.

For further information, please contact IR@CVGRP.com.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems across a range of global industries by innovating, constantly adding value, and treating our customer's bottom line as if it were our own. Information about the Company and its products is available on the internet at www.cvgrp.com.

Investor Contact

Christopher Bohnert, Chief Financial Officer
CVG
IR@CVGRP.com

FAQ

What recent agreement did CVGI announce?

CVGI announced a new pricing agreement with its top two customers.

How much of CVGI's revenue is affected by the new pricing?

The new pricing affects approximately 30% of CVGI's revenue.

When will CVGI discuss the new pricing agreement?

CVGI will discuss the new pricing agreement during its First Quarter 2022 Earnings Call on May 5th at 10am ET.

What was the previous profitability status with these customers?

Prior to the new agreement, these customers were generating zero or negative profit for CVGI.