18 May 2001
18 May 2001
Core Materials’ income for the first quarter of 2001 was $4,000, representing an improvement over the loss recorded in the fourth quarter of 2000 of ($440,000). Net sales for this year's first quarter totaled $19,099,000, a 26 percent decrease when compared to the record sales levels of $25,913,000 reached in the first quarter of 2000.
The company's overall decrease in earnings for the first quarter of 2001 is primarily the result of decreased sales, particularly to our truck customers. Sales to International Truck and Engine Corporation for the first quarter of 2001 decreased approximately 43% to $9,986,000 from $17,436,000, for the three months ended March 31, 2000. The reduced sales to International mirrored the industry-wide general decline in truck orders. Sales to Core Materials other truck customers were also down following the industry trend. Partially offsetting these trends, was an increase in sales to Yamaha and Lear Corporation. Sales of personal watercraft products to Yamaha were higher than originally anticipated increasing for the three months ended March 31, 2001, by approximately 21%, to $5,631,000, compared with $4,646,000, for the three months ended March 31, 2000. The company also began production with Lear in the first quarter of 2001, with sales to this new customer totaling $327,000.