Core Molding Technologies reports its 2008 net income grew 51.4% to US$5.6M year-over-year, sales fell 4.9% to US$116.7M
April 2, 2009
– Core Molding Technologies, Inc. (NYSE Amex: CMT) today announced results for the year and fourth quarter ended December 31, 2008.
Net income for the year ended December 31, 2008 was $5,643,000, or $.84 per basic and $.81 per diluted share, compared with $3,726,000, or $.43 per basic and $.41 per diluted share, for the year ended December 31, 2007. Total net sales for 2008 were $116,655,000 compared with $122,712,000 for 2007.
Product sales for 2008 increased 9% to $110,539,000 from $101,045,000 for 2007. The increase in product sales is primarily due to increased volume for new production programs begun in 2007 and 2008. Tooling sales totaled $6,116,000 for 2008 versus $21,667,000 for 2007. Revenue from tooling is sporadic in nature and does not represent a recurring trend.
Total net sales for the fourth quarter were $27,600,000, compared with $23,268,000 in the same quarter of 2007. Product sales totaled $25,663,000 up 17% from $21,965,000 for the fourth quarter 2007.
Net income for the quarter ended December 31, 2008 was $1,375,000, or $.20 per basic and diluted share, compared with $530,000, or $.08 per basic and diluted share, in the fourth quarter of 2007.
"Overall 2008 was a very good year for Core Molding Technologies," said Kevin L. Barnett, President and Chief Executive Officer. "Even in this tough economic climate, our product sales increased as a result of new production models we have recently launched for our customers. More significantly, our profitability increased 51% over 2007 as a result of improvements in our production efficiencies, reductions in our fixed manufacturing expenses and as a result of better fixed cost absorption associated with higher production volumes," Barnett said. "We have also continued to make good progress on the construction of our new manufacturing facility in Matamoros, Mexico. In March 2009, we started up production trials in the facility and we expect to be fully operational in the new facility by the end of the second quarter of 2009," continued Barnett.
"Looking forward, 2009 will be a challenging year considering the weakness in the overall economy as well as the truck industry outlook. Industry analysts are forecasting an overall decrease in heavy duty truck production of approximately 30% over 2008 levels. Furthermore, we expect to incur approximately $2,000,000 of transition and start up expenses related to our new facility in Mexico in the first half of 2009," said Barnett. "In response to the decreased sales levels and our new start up, we are focused on reducing costs and adjusting our operations accordingly. We believe these actions will lessen the impact of these conditions. However, our 2009 profitability will be challenged, particularly in the first half of the year," continued Barnett.
"As in past down cycles, we will actively manage our operations in light of business conditions while continuing to focus our efforts on expanding our customer relationships and improving our operations to continue our previous levels of success," said Barnett.
Core Molding Technologies, Inc. is a compounder of sheet molding composites (SMC: undefined, undefined, undefined%) and molder of fiberglass reinforced plastics. The Company's processing capabilities include the compression molding of SMC, resin transfer molding, multiple insert tooling (MIT: undefined, undefined, undefined%), spray up and hand lay up processes. The Company produces high quality fiberglass reinforced, molded products and SMC materials for varied markets, including light, medium and heavy-duty trucks, automobiles, automobile aftermarket, personal watercraft and other commercial products. Core Molding Technologies, with its headquarters in Columbus, Ohio, operates plants in Columbus and Batavia, Ohio, Gaffney, South Carolina, and Matamoros, Mexico. More information on Core Molding Technologies can be found at www.coremt.com.