By Josh Beckerman
Commercial Vehicle Group Inc. shares rose 8% to $7.27 as it reached a mutual agreement with its top two customers on new pricing.
The two customers collectively represent about 30% of the company’s revenue and were previously “at zero profit or less.” The new pricing is expected to significantly improve the company’s profit.
The company’s operations include warehouse automation and robotic assemblies, electric vehicle assemblies, electrical wire harnesses, seating systems and plastic products for markets including e-commerce, warehousing and industrial and recreational vehicles.
Commercial Vehicle Group, which is scheduled to report earnings on May 5, said Feb. 28 that it faced a “challenging cost-price environment” and was renegotiating some agreements.
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