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Dec 31, 2020
Core Molding Q4 2020 Earnings Report
Core Molding Technologies reported a net loss in Q4 2020, but net sales increased due to higher demand in construction and all-terrain vehicle markets.
Key Takeaways
Core Molding Technologies reported a net loss of $0.9 million for Q4 2020, which includes a one-time charge of $1.3 million from debt refinancing. Excluding this charge, the company would have recorded a net income of $0.4 million. Net sales increased by 8% to $60.7 million compared to the same period in 2019, driven by increased demand in the construction and all-terrain vehicles markets.
Net sales increased by 8% compared to Q4 2019, reaching $60.7 million.
Gross margin improved to 16.4% compared to 6.0% in Q4 2019.
Operating income was $3.0 million, a significant improvement from the operating loss of $4.1 million in Q4 2019.
The company recorded a net loss of $0.9 million, or ($0.10) per share, compared to a net loss of $5.5 million, or ($0.69) per share, in Q4 2019.
Forward Guidance
The Company expects sales levels for 2021 to increase compared to 2020, with ACT Research forecasting a 41% increase in North American heavy-duty truck production. Higher demand is also anticipated in the marine and all-terrain vehicle markets.
Positive Outlook
- Sales levels for 2021 are expected to increase compared to 2020.
- North American heavy-duty truck production is forecasted to increase by approximately 41%.
- Customers are forecasting higher demand in the marine and all-terrain vehicle markets.
- Ability to effectively leverage execution capabilities to better serve current customers.
- Continuing diversification of the business.
Challenges Ahead
- Higher raw material costs are anticipated in 2021.
- Global demand for certain raw materials has increased, leading to price increases.
- The Company can only pass through a portion of the cost increases to its customers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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