NEW ALBANY, Ohio, Feb. 12, 2018 /PRNewswire/ -- Commercial
Vehicle Group, Inc. (the "Company" or "CVG") (NASDAQ: CVGI)
announces that, in light of the recently passed federal tax
reform legislation ("Tax Cuts and Jobs Act of 2017"), the
Company will be required to revalue its net deferred tax assets to
reflect the future impact of lower corporate tax rates and to
establish a liability for tax on the deemed repatriation of
earnings of certain foreign affiliates. The preliminary
assessment of the impact of the new tax legislation is a negative
impact in the fourth quarter 2017 with an expected positive impact
on the Company's future after-tax earnings, and is subject to,
among other things, the clarification and implementation of the new
tax legislation by regulatory bodies.
Tim Trenary, Chief Financial
Officer, said, "Preliminarily, we believe the new tax legislation
will result in a charge in the fourth quarter 2017 of approximately
$11 million. Approximately two
thirds of this is a non-cash charge arising from the revaluation of
our net deferred tax assets. The remainder of the charge is a
tax on the deemed repatriation of earnings of certain of our
foreign affiliates, payable over eight years. The impact on our
fourth quarter 2017 earnings notwithstanding, we believe the
legislation will result in a lower future effective tax rate and
lower cash taxes for the Company – this legislation is a net
positive for us."
"We continue to see strong demand in our two largest end
markets, especially the heavy-duty truck market in North
America. The Tax Cuts and Jobs Act of 2017 should be good for
business as well as economic growth. We expect that in the
long term the lower tax rates will benefit CVG's earnings," said Pat
Miller, Chief Executive Officer.
Commercial Vehicle Group will hold its quarterly conference call
on Tuesday, March 13, 2018, at
10:00 a.m. ET, to discuss its fourth
quarter and fiscal year 2017 financial results. The Company
will issue a press release with quarterly conference call details
shortly.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc., a Delaware (USA) corporation, (and its
subsidiaries) is a leading supplier of a full range of cab related
products and systems for the global commercial vehicle market,
including the medium-and heavy-duty truck market, the medium-and
heavy-construction vehicle markets, the military, bus, agriculture,
specialty transportation, mining, industrial equipment and off-road
recreational (ATV/UTV) markets. Information about the
Company and its products is available on the internet at
www.cvgrp.com.
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SOURCE Commercial Vehicle Group, Inc.