Core Molding Technologies Reports Fiscal Third Quarter 2024 Results

by · The Cerbat Gem

Core Molding Technologies, Inc. (NYSE American: CMT) recently announced its financial and operating results for the fiscal quarter ending September 30, 2024. Despite facing challenges, the company remains focused on executing critical strategies for growth and efficiency.

In the third quarter of 2024, Core Molding Technologies reported total net sales of $73.0 million, representing a decrease of 15.8% compared to the same period in the prior year. The company also noted a gross margin of $12.3 million, equivalent to 16.9% of net sales. Operating income was $3.6 million, equivalent to 4.9% of net sales, and net income stood at $3.2 million, translating to $0.36 per diluted share.

Furthermore, adjusted EBITDA for the quarter was $7.5 million, or 10.3% of net sales. The company highlighted a labor reduction initiative completed during the quarter anticipated to yield annual cost savings of $2.6 million. Moreover, Core Molding Technologies repurchased 111,884 shares under the share repurchase authorization during the quarter.

For the first nine months of 2024, total net sales were $239.9 million, showcasing a 15.5% decrease compared to the prior year. The gross margin was $43.4 million, or 18.1% of net sales, while operating income and net income came in at $15.8 million and $13.3 million respectively.

David Duvall, President and CEO of Core Molding Technologies, expressed optimism about the company’s performance, highlighting new program wins and strategic initiatives aimed at driving sales growth. The company’s sales opportunity pipeline currently stands at over $275 million, with a focus on expanding market presence and product offerings.

John Zimmer, EVP and CFO, provided additional insights noting the impact of sales decline on margins but emphasized the company’s focus on operational efficiency and long-term growth. Core Molding’s balance sheet remains robust with total liquidity of $92.3 million at the end of the third quarter.

The company’s capital expenditures for the first nine months of 2024 totaled $7.0 million, with anticipated full-year spending of $11 to $13 million on property, plant, and equipment purchases for all operations.

Core Molding Technologies maintains a strong financial position with total liquidity, including cash and undrawn capacities under credit facilities, to support its operations and growth strategies. The company continues its commitment to enhancing shareholder value while navigating market challenges and opportunities.

Interested parties can access the company’s conference call discussing these financial results on its Investor Relations website. Core Molding Technologies remains dedicated to providing quality engineered materials for various industries, driving innovation and customer satisfaction.

For more information about Core Molding Technologies, visit www.coremt.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Core Molding Technologies’s 8K filing here.

About Core Molding Technologies

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Core Molding Technologies, Inc, together with its subsidiaries, operates as a molder of thermoplastic and thermoset structural products. The company offers a range of manufacturing processes that include compression molding of sheet molding compound, resin transfer molding, liquid molding of dicyclopentadiene, spray-up and hand-lay-up, direct long-fiber thermoplastics, and structural foam and structural web injection molding.

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