CVG Announces CEO Transition and Reaffirms 2023 Outlook and Long-Term Strategy
09 May 2023 - 11:43PM
CVG (NASDAQ: CVGI), a diversified industrial products and services
company, announced yesterday that Harold Bevis is resigning from
his role as President and Chief Executive Officer of the Company
and as a member of the Company’s Board of Directors (the “Board”)
effective May 19, 2023 to become chief executive officer of another
company. Mr. Bevis’ resignation did not result from any
disagreement with the Company on any matter, including any matter
relating to its operations, policies or practices.
Robert C. Griffin, the Chairman of the Board, is
expected to be elected by the Board as the Company’s interim
President and Chief Executive Officer, effective May 19, 2023. Mr.
Griffin along with the Board of Directors has served as a Director
since 2005 and has worked closely alongside Harold in designing and
implementing the Company’s strategy.
“Harold has set CVG on the right path for future
growth and we’re grateful for his contributions,” Mr. Griffin said.
“The board and I are eager now to find the right leader who will
continue our momentum as a business and drive us into the
future.”
Mr. Griffin will serve as interim President and
Chief Executive Officer until his successor is chosen. The Company
is in the process of conducting a comprehensive search for a
permanent President and Chief Executive Officer and will name Mr.
Griffin’s successor at the completion of the search.
In announcing the management changes noted above,
the Company today reaffirmed its commitment to its strategic goals
and improvement in its results for 2023.
As disclosed in its first quarter results and
discussed on its first quarter conference call on May 4, 2023, the
Company:
- will continue its focus on price and cost which allowed it to
deliver significant margin expansion in the first quarter;
- believes its first quarter margin performance is sustainable
for fiscal 2023 given the current vehicle production outlook;
- believes based on the current revenue run rate, combined with
new wins that are still ramping up, it is on track to deliver its
2027 revenue target of $1.5 billion; and
- will continue to focus on price and inflation management, and
cost reduction as it works toward achieving a 9% EBITDA margin
target by 2027.
Mr. Griffin stated, “The Board is pleased with the
Company’s first quarter performance and reaffirms our commitment to
the Company’s strategic direction as discussed on its first quarter
call on May 4, 2023. We believe we have a solid balance sheet, a
business winning culture, and strong leadership team that positions
us well to execute on our strategy. The Board looks forward to
working with the management team to continue our positive momentum
throughout this transition.”
Robert C. Griffin Biography
Mr. Griffin, 75, has served as a member of the
Board since July 2005, and was elected Chairman in 2019. Mr.
Griffin’s career spanned over 25 years in the financial sector
until he retired from Barclays Capital, where from June 2000 to
March 2002 he was Head of Investment Banking, Americas and a member
of the Management Committee. Prior to joining Barclays Capital, Mr.
Griffin was a member of the Executive Committee for the Montgomery
Division of Banc of America Securities and held a number of
positions with Bank of America, including Group Executive Vice
President and Head of Global Debt Capital Raising and as a Senior
Management Council Member. Since 2005, he has served on a number of
boards, both public and private, including during the last five
years, the boards of the following public companies: The J.G.
Wentworth Company (ending in 2018), and Builders FirstSource, Inc.
(ending in 2019).
Company Contact
Andy CheungChief Financial
OfficerCVGIR@cvgrp.com
Investor Relations Contact
Ross Collins or Stephen PoeAlpha IR
GroupCVGI@alpha-ir.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.
Forward-Looking Statements
This press release contains forward-looking
statements that are subject to risks and uncertainties. These
statements often include words such as “believe”, “anticipate”,
“plan”, “expect”, “intend”, “will”, “should”, “could”, “would”,
“project”, “continue”, “likely”, and similar expressions. In
particular, this press release may contain forward-looking
statements about the Company’s expectations for future periods with
respect to its plans to improve financial results, the future of
the Company’s end markets, including the short-term and long-term
impact of the COVID-19 pandemic on our business, changes in the
Class 8 and Class 5-7 North America truck build rates, performance
of the global construction equipment business, the Company’s
prospects in the wire harness, warehouse automation and electric
vehicle markets, the Company’s initiatives to address customer
needs, organic growth, the Company’s strategic plans and plans to
focus on certain segments, competition faced by the Company,
volatility in and disruption to the global economic environment and
the Company’s financial position or other financial information.
These statements are based on certain assumptions that the Company
has made in light of its experience as well as its perspective on
historical trends, current conditions, expected future developments
and other factors it believes are appropriate under the
circumstances. Actual results may differ materially from the
anticipated results because of certain risks and uncertainties,
including those included in the Company’s filings with the SEC.
There can be no assurance that statements made in this press
release relating to future events will be achieved. The Company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over
time. All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on behalf of the
Company are expressly qualified in their entirety by such
cautionary statements.
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