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Mar 31, 2024
Core Molding Q1 2024 Earnings Report
Core Molding Technologies reported a decrease in net sales and net income compared to the prior year first quarter, but showed sequential improvement from the previous quarter.
Key Takeaways
Core Molding Technologies reported a 21.5% decrease in net sales compared to the prior year first quarter, but a 5.9% increase sequentially from Q4 2023. Net income decreased by 35.8% compared to the prior year, but increased 72.3% sequentially. The company highlighted improved operational efficiency and diversification across multiple industries.
Net sales decreased 21.5% year-over-year but increased 5.9% sequentially.
Gross margin was 17.0%, a decrease from 17.8% year-over-year but an improvement from 14.8% sequentially.
Operating income decreased to $4.7 million, or 6.1% of net sales, compared to $8.1 million, or 8.1% of net sales for the prior year first quarter.
Net income was $3.8 million, or $0.43 per diluted share, compared to $5.9 million, or $0.66 per diluted share for the prior year first quarter.
Core Molding
Core Molding
Core Molding Revenue by Segment
Revenue by Segment
Industrial & Utilities Revenue
CapyFin.comBuilding Products Revenue
CapyFin.com Forward Guidance
The company anticipates second quarter 2024 demand levels to be similar to first quarter 2024 demand levels and still anticipates a full year sales decrease of 10% to 15%, consistent with previous guidance.
Positive Outlook
- Company is well positioned operationally to continue to adjust for changing demand levels.
- Financial position is strong.
- Approximately $77 million of available liquidity to make investments in both organic and inorganic opportunities.
- Generated Free Cash Flow of over $3 million this quarter, higher than the year-ago period.
Challenges Ahead
- Signaled double-digit sales declines for 2024 compared to 2023.
- Expect the first half of 2024 declines to be higher than second half 2024 declines.
- First quarter aligned with expectations due to tougher comparisons from channel de-stocking and demand shifts in end markets.
- Anticipate second quarter 2024 demand levels to be similar to first quarter 2024 demand levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income