Core Molding Q3 2023 Earnings Report
Key Takeaways
Core Molding Technologies reported net sales of $86.7 million and net income of $4.4 million, or $0.49 per diluted share, for the third quarter of 2023. The results reflect solid gross margins and operational improvements, with a focus on revenue expansion and profitability.
Net sales were $86.7 million, compared to $101.6 million in the prior year.
Gross margin was $15.3 million, or 17.6% of net sales, compared to $13.3 million, or 13.1% of net sales in the prior year.
Operating income was $5.9 million, or 6.8% of net sales, versus operating income of $4.6 million, or 4.6% of net sales in the prior year.
Net income was $4.4 million, or $0.49 per diluted share, compared to net income of $1.3 million, or $0.16, in the prior year.
Core Molding
Core Molding
Core Molding Revenue by Segment
Forward Guidance
The company anticipates a return to historical seasonality and customer de-stocking in the fourth quarter, which, along with the impact of UAW strikes, is expected to result in sales declines of 15% to 20% from the fourth quarter of 2022. They continue to target gross margins in the 17.5% to 18.5% range for fiscal year 2023, and full-year revenues may be down 5% to 10% compared to fiscal year 2022.
Positive Outlook
- Targeting gross margins in the 17.5% to 18.5% range for fiscal year 2023.
Challenges Ahead
- Sales declines of 15% to 20% from the fourth quarter of 2022 are expected.
- Anticipates a return to historical seasonality and customer de-stocking in the fourth quarter.
- Impact of UAW strikes at customer locations in the fourth quarter expected.