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Jun 30, 2024
Core Molding Q2 2024 Earnings Report
Reported a decrease in net sales and operating income compared to the prior year second quarter, while maintaining a strong gross margin.
Key Takeaways
Core Molding Technologies reported a decrease in net sales by 9.2% and operating income decreased compared to the prior year second quarter. However, the company sustained a strong gross margin of 20%.
Total net sales decreased by 9.2% compared to the prior year second quarter.
Gross margin was 20.0% of net sales, compared to 21.0% in the prior year second quarter.
Operating income decreased compared to the prior year second quarter.
Net income decreased compared to the prior year second quarter.
Core Molding
Core Molding
Core Molding Revenue by Segment
Core Molding Revenue by Geographic Location
Revenue by Segment
Truck Revenue
CapyFin.comPowersports Revenue
CapyFin.comIndustrial & Utilities Revenue
CapyFin.comBuilding Products Revenue
CapyFin.comRevenue by Geographic Location
US Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company is lowering sales guidance to the bottom of the full-year guidance, down approximately 15%, compared to 2023 sales due to continued softness in customer demand driven by macro-economic conditions, while they continue to evaluate the Company’s fixed cost structure and will adjust costs prudently.
Positive Outlook
- Focus on investing for growth, operational performance and cash flow generation.
- Opportunity pipeline is a robust $250 million.
- New business wins total $42 million.
- Gross margins within full-year goal range of 17% to 19%.
- Total available liquidity was $87.8 million at the end of the second quarter.
Challenges Ahead
- Sales declined 15.4%, primarily due to economic headwinds, tough comparisons, and customer inventory rationalization.
- Second-half of the year gross margin percentages to be lower than first-half gross margin percentages due to normal seasonality and less leverage of fixed costs.
- Lowering sales guidance to the bottom of our full-year guidance, down approximately 15%, compared to 2023 sales.
- Continued softness in customer demand driven by macro-economic conditions.
- Quote-to-cash cycle is 12 to 18 months, and therefore, the benefits of these wins will be realized starting in 2025 and 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income