Shares of REV Group Inc. soared toward a near three-year high Monday, after the maker of electric- and hydrogen-powered commercial vehicles said it will pay out a special dividend with the cash generated by strategic actions, including winding down its transit bus manufacturing business. The stock
REVG,
+0.39%
charged up 9.5% in premarket trading, which puts it on track to open around the highest closing price seen since April 27, 2021.
The company said the winding down of its ElDorado National-California (ENC) operations, which makes hydrogen-powered, battery-electric, diesel and compressed-natural-gas-powered transit buses, will be mostly completed by the end of fiscal 2024, which runs through October. “Delays in the supply of critical components and the build out of infrastructure to support EV adoption, as well as the financial health of key suppliers, has created a competitive bidding environment for diesel and CNG buses that has made it difficult for ENC to compete profitably versus peers of greater scale,” said Chief Executive Mark Skonieczny. In addition, the company said it completed the sale of its school-bus business, Collins Bus Corp., for $303 million in cash to Forest River Bus LLC. REV said it expects to generate at least $250 million in net cash from its strategic actions. The company will use about $180 million …
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REVG,
+0.39%
charged up 9.5% in premarket trading, which puts it on track to open around the highest closing price seen since April 27, 2021.
The company said the winding down of its ElDorado National-California (ENC) operations, which makes hydrogen-powered, battery-electric, diesel and compressed-natural-gas-powered transit buses, will be mostly completed by the end of fiscal 2024, which runs through October. “Delays in the supply of critical components and the build out of infrastructure to support EV adoption, as well as the financial health of key suppliers, has created a competitive bidding environment for diesel and CNG buses that has made it difficult for ENC to compete profitably versus peers of greater scale,” said Chief Executive Mark Skonieczny. In addition, the company said it completed the sale of its school-bus business, Collins Bus Corp., for $303 million in cash to Forest River Bus LLC. REV said it expects to generate at least $250 million in net cash from its strategic actions. The company will use about $180 million …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]