Company: CVGI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001628280-25-012913
Chunk: 70

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 70
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As a percentage of revenues, gross profit for the years ended December 31, 2024 and 2023, was 5.6% and 15.5%, respectively. The decrease in 2024 gross profit margin was primarily due to lower sales volume, restructuring activities, labor inflation, and unfavorable foreign exchange impacts. The twelve months ended December 31, 2024 results include charges of $3.7 million associated with the restructuring program. The increase in 2023 gross profit margin was primarily due to volume leverage and increased pricing, more than offsetting inflationary items.

Selling, General and Administrative Expenses. 2024 SG&A expenses increased $1.1 million from 2023, primarily driven by increased salaries. The increase of $3.3 million in 2023 from 2022, was primarily a result of increased headcount and incentive adjustments based on performance. 

Aftermarket & Accessories Segment Results

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 and Year Ended December 31, 2023 Compared to Year Ended December 31, 2022

The table below sets forth certain Aftermarket & Accessories Segment operating data for the twelve months ended, (dollars are in thousands):

 20242023$ Change% Change2022$ Change% ChangeRevenues$129,565 $137,083 ($7,518)(5.5)%$131,845 $5,238 4.0%Gross profit23,348 26,514 (3,166)(11.9)18,461 8,053 43.6Selling, general & administrative expenses8,322 8,144 178 2.26,915 1,229 17.8Operating income15,026 18,370 (3,344)(18.2)11,546 6,824 59.1

Revenues.  The decrease in Aftermarket & Accessories segment revenues in 2024 of $7.5 million from 2023 was driven by lower sales volume due to a decreased customer demand and the reduction of backlog in the prior period. The increase in 2023 revenues of $5.2 million from 2022 resulted from increased pricing to offset material cost pass-through and other inflationary items. 

Gross Profit. The decrease in 2024 gross profit of $3.2 million from 2023 is primarily due to