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Mar 31, 2021
Core Molding Q1 2021 Earnings Report
Reported strong results driven by increased operating margin performance with increased sales.
Key Takeaways
Core Molding Technologies reported a strong first quarter in 2021 with net sales of $72.8 million and net income of $3.5 million, or $0.41 per share. The company saw increased demand from heavy-duty truck, building product, and consumer product markets, as well as new business in the power sports market. Operating income improved to 7.3% of net sales, compared to 6.7% in the same period of 2020.
Net sales increased by 13.8% to $72.8 million compared to $64.0 million in the same period last year.
Net income was $3.5 million, or $0.41 per share, compared to $8.0 million, or $0.97 per share, for the first quarter 2020, which included a $5.6 million tax benefit.
Operating income improved to 7.3% of net sales, compared to 6.7% for the same period of 2020.
The company experienced higher demand from the heavy-duty truck, building product and consumer product markets and due to new business in our power sports market.
Core Molding
Core Molding
Forward Guidance
The Company expects sales levels for 2021 to increase compared to 2020. The Company and our customers have experienced supply disruptions and material cost increases due to storms, port delays, supplier force majeure as well as overall heavy global demand for certain materials. Although some of the supply disruptions have started to subside, we anticipate the disruptions to continue to impact revenues through the remainder of 2021. The Company incurred increased raw material costs in the first quarter of 2021 and anticipates higher raw material costs to continue through the remainder of 2021.
Positive Outlook
- ACT Research is forecasting North American heavy-duty truck production to increase approximately 41%.
- Customers are forecasting higher demand in 2021 in the building products market.
- Customers are forecasting higher demand in 2021 in the power sports market.
- Customers are forecasting higher demand in 2021 in the consumer goods markets.
- The company has the ability to pass through a portion of the cost increases to its customers.
Challenges Ahead
- Supply disruptions and material cost increases due to storms.
- Supply disruptions and material cost increases due to port delays.
- Supply disruptions and material cost increases due to supplier force majeure.
- Supply disruptions and material cost increases due to overall heavy global demand for certain materials.
- Anticipates the disruptions to continue to impact revenues through the remainder of 2021.