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Sep 30, 2021
Core Molding Q3 2021 Earnings Report
Reported a net loss due to restructuring costs and unrecouped raw material inflation, but signed over $40 million of new business.
Key Takeaways
Core Molding Technologies reported a net loss of $3.3 million for Q3 2021, impacted by restructuring costs and raw material inflation. However, the company signed over $40 million in new business and substantially completed the transition of business from its Batavia, Ohio facility.
Net sales increased to $81.0 million from $59.9 million in the same period last year.
The company had a net loss of $3.3 million, or ($0.41) per share, compared to net income of $3.3 million, or $0.39 per share, for the same period in 2020.
Signed over $40 million of new business which will be launched over the next twelve months.
Raw material inflation negatively impacted results by approximately $10 million, with $6.5 million recouped through customer price changes.
Core Molding
Core Molding
Forward Guidance
The Company expects sales for the fourth quarter of 2021 to increase compared to the fourth quarter of 2020 primarily due to raw material inflation recoupment. Excluding the raw material inflation recoupment, the Company expects sales for the fourth quarter of 2021 to be flat compared to the fourth quarter of 2020.
Positive Outlook
- Sales for the fourth quarter of 2021 are expected to increase compared to the fourth quarter of 2020 primarily due to raw material inflation recoupment.
- Won a technical solution sale in the industrial industry, where we redesigned and converted a product to composites, resulting in a lighter weight, lower cost and more durable product for our customer
- Continue to focus on new industries, including utilities and water management, by taking advantage of current societal changes of people working from home which increases suburban infrastructure needs.
- Believe continued execution on our long-term strategic goals will position the Company for profitable growth in the future
Challenges Ahead
- Supply chain disruptions that our customers have experienced will persist in the fourth quarter and will continue to cause sporadic changes to demand.
- The Company has experienced raw material inflation due to ongoing raw material shortages and supply chain disruptions.
- The Company anticipates increased raw material costs to continue through the remainder of 2021.
- Labor markets in all Company locations have tightened over the past several months and the Company anticipates the markets will remain tight.
- The Company had to raise wages and create other solutions in order to hire and retain workers.