COLUMBUS, Ohio, Aug. 13 /PRNewswire-FirstCall/ -- Core Molding
Technologies, Inc. (AMEX:CMT) today announced results for the
second quarter and six months ended June 30, 2009. The Company
recorded a net loss for the second quarter of 2009 of $867,000, or
$.13 per basic and diluted share, compared with net income of
$1,716,000, or $.25 per basic and $.24 per diluted share, in the
second quarter of 2008. Total net sales for the second quarter were
$17,300,000, compared with $29,939,000 in the same quarter of 2008.
Product sales for the three months ended June 30, 2009 decreased 43
percent, to $16,644,000, from $29,395,000 for the same period one
year ago. The decrease in sales is primarily due to weakness in the
North American medium and heavy-duty truck market caused by overall
economic conditions. While industry analysts are forecasting an
increase in truck orders toward the end of 2009, the Company
recognizes this expectation should be considered in light of an
uncertain economy. Negatively impacting the second quarter's
results were approximately $768,000 of transition and start-up
expenses associated with the Company's new production facility in
Mexico. For the first six months of 2009, net loss was $1,527,000,
or $.23 per basic and diluted share, compared with net income of
$2,580,000, or $.38 per basic and $.37 per diluted share, for the
first six months of 2008. Total net sales for the first half of
2009 were $35,684,000, compared with $59,024,000 in the first half
of 2008. Product sales for the first six months of 2009 decreased
38 percent, to $34,474,000 compared to $55,378,000 for the same
period in 2008. Negatively impacting the first six months results
were approximately $2 million of transition and start-up expenses
associated with the Company's new production facility in Mexico.
"As expected, the second quarter was challenging in light of the
very difficult economic climate," said Kevin L. Barnett, President
and Chief Executive Officer. "In addition to a 43 percent drop in
product sales we incurred transition and start-up expenses related
to our new facility in Mexico. Both of these items negatively
impacted our results. The transition and start-up costs, however
were largely completed in the second quarter." "To combat this
tough economy, we have aggressively focused on cost reductions.
Year to date the Company has reduced its manufacturing overhead and
SG&A expenses by approximately $1 million. This savings rate is
expected to grow over the balance of the year as these actions are
fully deployed and the costs of implementation are absorbed. We
have also been actively working to win new business and have
recently won new business awards with three existing truck
customers and one new customer in mass transportation," Barnett
continued. "We are also very pleased to report that our newly
constructed manufacturing facility in Mexico became fully
operational on June 1, 2009. We are proud of the efforts of many
people throughout our Company who contributed to the success of
this project which included a very aggressive construction
schedule," Barnett said. Core Molding Technologies is a compounder
of sheet molding compound (SMC) and molder of fiberglass-reinforced
plastics. The Company produces high quality fiberglass-reinforced,
molded products and SMC materials for varied markets, including
medium and heavy-duty trucks, automobiles, personal watercraft, and
other commercial products. The Company offers customers a range of
manufacturing processes to fit various volume and capital
requirements. These processes include compression molding, resin
transfer molding (RTM), epoxy molding, spray-up and hand-lay-up.
Core Molding Technologies has its headquarters in Columbus, Ohio,
and operates plants in Columbus and Batavia, Ohio, Gaffney, South
Carolina, and Matamoros, Mexico. More information on Core Molding
Technologies can be found at http://www.coremt.com/. This press
release contains certain forward-looking statements within the
meaning of the federal securities laws. As a general matter,
forward-looking statements are those focused upon future plans,
objectives or performance as opposed to historical items and
include statements of anticipated events or trends and expectations
and beliefs relating to matters not historical in nature. Such
forward-looking statements involve known and unknown risks and are
subject to uncertainties and factors relating to Core Molding
Technologies operations and business environment, all of which are
difficult to predict and many of which are beyond Core Molding
Technologies' control. These uncertainties and factors could cause
Core Molding Technologies' actual results to differ materially from
those matters expressed in or implied by such forward-looking
statements. Core Molding Technologies believes that the following
factors, among others, could affect its future performance and
cause actual results to differ materially from those expressed or
implied by forward-looking statements made in this report: business
conditions in the plastics, transportation, watercraft and
commercial product industries; federal and state regulations
(including engine emission regulations); general economic
conditions in the countries in which Core Molding Technologies
operates; dependence upon two major customers as the primary source
of Core Molding Technologies' sales revenues; recent efforts of
Core Molding Technologies to expand its customer base; failure of
Core Molding Technologies' suppliers to perform their contractual
obligations; the availability of raw materials; inflationary
pressures; new technologies; competitive and regulatory matters;
labor relations; the loss or inability of Core Molding Technologies
to attract and retain key personnel; changes to federal, state and
local environmental laws and regulations; the availability of
capital; the ability of Core Molding Technologies to provide
on-time delivery to customers, which may require additional
shipping expenses to ensure on-time delivery or otherwise result in
late fees; risk of cancellation or rescheduling of orders;
inefficiencies related to the transfer and start up of Core Molding
Technologies new Matamoros production facility; management's
decision to pursue new products or businesses which involve
additional costs, risks or capital expenditures; and other risks
identified from time-to-time in Core Molding Technologies other
public documents on file with the Securities and Exchange
Commission, including those described in Item 1A of the 2008 Annual
Report to Shareholders on Form 10-K. CORE MOLDING TECHNOLOGIES,
INC. Condensed Income Statement -------------------------- (in
thousands, except per share data) Three Months Ended Six Months
Ended 06/30/09 06/30/08 06/30/09 06/30/08 -------- --------
-------- -------- (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Product Sales $16,644 $29,395 $34,474 $55,378 Tooling Sales 656 544
1,210 3,646 --- --- ----- ----- Net Sales 17,300 29,939 35,684
59,024 Cost of Sales 16,316 24,318 33,127 49,087 ------ ------
------ ------ Gross Margin 984 5,621 2,557 9,937 Selling, General
and Admin. Expense 2,256 2,994 4,756 5,808 ----- ----- ----- -----
Operating (Loss) Income (1,272) 2,627 (2,199) 4,129 Interest
Expense -Net (30) (133) (140) (362) ---- ----- ----- ----- (Loss)
Income before Taxes (1,302) 2,494 (2,339) 3,767 Income Tax
(Benefit) Expense (435) 778 (812) 1,187 ----- --- ----- ----- Net
(Loss) Income $(867) $1,716 $(1,527) $2,580 ===== ====== =======
====== Net (Loss) Income per Common Share Basic $(0.13) $0.25
$(0.23) $0.38 Diluted $(0.13) $0.24 $(0.23) $0.37 Weighted Average
Shares Outstanding: Basic 6,784 6,741 6,769 6,736 ===== ===== =====
===== Diluted 6,784 7,065 6,769 7,056 ===== ===== ===== =====
Condensed Consolidated Balance Sheet (in thousands) As of 6/30/09
As of (Unaudited) 12/31/08 ----------- -------- Assets Cash $- $-
Accounts Receivable 12,237 15,435 Inventories 7,584 9,732 Other
Current Assets 4,723 3,330 Property, Plant & Equipment - net
45,657 38,815 Deferred Tax Asset - net 5,308 5,319 Other Assets
1,161 1,200 ----- ----- Total Assets $76,670 $73,831 =======
======= Liabilities and Stockholders' Equity --------------- Note
Payable - Bank Line-of-Credit $873 $1,194 Current Portion of
Long-term Debt 3,645 2,906 Accounts Payable 5,026 6,866
Compensation and Related Benefits 3,728 4,716 Accrued Liabilities
and Other 2,000 1,665 Long-term Debt and Interest rate SWAPS 17,397
11,631 Post Retirement Benefits Liability 16,354 15,878
Stockholders' Equity 27,647 28,975 ------ ------ Total Liabilities
and Stockholders' Equity $76,670 $73,831 ======= =======
DATASOURCE: Core Molding Technologies, Inc. CONTACT: Herman F.
Dick, Jr., +1-614-870-5604 Web Site: http://www.coremt.com/
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