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.
Investor Contact: Terry Hammett, Investor Relations, (614) 289-5384, Terry.Hammett@cvgrp.com