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Mar 31, 2020
Core Molding Q1 2020 Earnings Report
Core Molding Technologies reported an improvement in net income and positive operating income despite lower sales compared to the same quarter last year.
Key Takeaways
Core Molding Technologies reported a net income of $8.0 million for the first quarter of 2020, a significant improvement from the net loss of $3.8 million in the first quarter of 2019. Despite an 11.4% decrease in net sales, the company achieved this turnaround through improved operational performance and reduced expenses.
Net income was $8.0 million, compared to a net loss of $3.8 million in Q1 2019.
Net sales decreased by 11.4% to $64.0 million, from $72.3 million in the same period last year.
Operating income was $4.3 million, compared to an operating loss of $4.0 million in Q1 2019.
Gross margin improved to 16.8% compared to 4.4% in the prior year.
Core Molding
Core Molding
Forward Guidance
The Company expects heavy and medium duty truck sales levels to decline in 2020, due to both lower cyclical demand and the COVID-19 pandemic. Customers in the marine industry are also projecting a reduction in 2020 sales resulting from the COVID-19 pandemic.
Positive Outlook
- Solid demand in construction business
- Solid demand in building products business
- Solid demand in energy business
- Benefit from diversification
- Operational system is driving the elimination of waste to improve profitability
Challenges Ahead
- Heavy and medium duty truck sales levels to decline in 2020
- Lower cyclical demand
- COVID-19 pandemic impact
- Customers in the marine industry are also projecting a reduction in 2020 sales
- Company is currently in default of its credit facility