Why did CVGI's operating profit plummet in Q2 2024?

Commercial Vehicle Group Inc. (CVGI) experienced a significant decline in operating profit in Q2 2024, with a reported operating income of -$1.73 million compared to $13.14 million in the same period of the previous year. This downturn can be attributed to several key factors:

1. **Decrease in Revenues**: CVGI's revenues decreased to $723.4 million in 2024 from $835.5 million in 2023, primarily due to lower customer demand across all segments and the wind-down of certain programs in the Vehicle Solutions segment.
2. **Cost Increase**: The cost of revenues for 2024 was $650.2 million, representing 89.9% of sales, up from 85.5% in the previous year. This increase in cost ratio was a result of lower sales volumes and increased restructuring charges.
3. **Operating Efficiency Challenges**: CVGI faced challenges in navigating through a period of decreased demand and restructuring efforts. The company's adjusted EBITDA margin for Q4 2024 was 0.6%, down from 4.3% in the same period of the previous year, indicating a decline in operational efficiency.

In summary, CVGI's operating profit plummeted in Q2 2024 due to a combination of decreased revenues, increased costs, and operational efficiency challenges.