Core Molding Technologies Reports First Quarter 2009 Results
COLUMBUS, Ohio, May 7, 2009 -- Core Molding Technologies, Inc. (NYSE Amex: CMT) today announced results for the first quarter ended March 31, 2009.
Core Molding Technologies recorded a net loss for the first quarter of 2009 of $660,000, or $.10 per basic and diluted share, compared with net income of $864,000, or $.13 per basic share and $.12 per diluted share, in the first quarter of 2008. Total net sales for the first quarter of 2009 were $18,384,000, compared with $29,085,000 in the same quarter of 2008. The Company's product sales decreased 31% to $17,830,000, from $25,983,000, for the similar period in 2008. 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 for the second half of 2009, the Company recognizes this expectation should be considered in light of an uncertain economy.
Negatively impacting the first quarter's results were approximately $1.2 million of transition and start-up expenses associated with the Company's new production facility in Mexico. Excluding these costs, the Company would have achieved a slight profit for the quarter. The Company expects to be fully operational in the new facility and exit the existing leased facility in Mexico by the end of the second quarter 2009.
"As expected, the first quarter of 2009 was negatively impacted by transition and start-up expenses related to our new manufacturing facility in Mexico and current economic conditions. Throughout the quarter we have continued to focus our efforts on reducing costs and adjusting our operations to lessen the impact of these conditions on our business," said Kevin L. Barnett, President and Chief Executive Officer.
The Company has taken several measures to adjust operations for controllable spending and has significantly reduced expenses. "The impact of many of these actions will be seen in the coming quarters as the actions are fully deployed and the costs of implementation are absorbed," Barnett said. "As part of these measures, our officers and certain senior managers recently volunteered to take a temporary reduction in base pay of 15% and 10% respectively and our salaried group is taking unpaid time off. Additionally, our board of directors has reduced their fees by 15% as well," he said.
The focus on growing customer relationships and continual process improvements remains a priority for Core. "We are encouraged by a number of new business opportunities being presented to us both at our new facility in Mexico and at our other U.S. facilities," Barnett said. "We are also using this time to focus our efforts on opportunities to improve our overall operations."