Core Molding Q4 2020 Earnings Report
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.
Core Molding
Core Molding
Core Molding Revenue by Segment
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.
- The winter storm in Texas and Mexico caused operational disruptions.
- Supplier disruptions have resulted in customers delaying orders.
Revenue & Expenses
Visualization of income flow from segment revenue to net income