29 March 2003
29 March 2003
Core Molding Technologies has released their results for the fourth quarter and year ended December 31, 2002.
Net income for the year ended December 31, 2002 was $2,006,000 compared with a net loss of $1,860,000 in 2001. Net sales for 2002 increased 29% to $94,089,000 from $73,180,000 for full year 2001.
The increase in sales for 2002 included a $16.9 million sales increase from the Company's Mexican operation, established in October 2001 and a $8.0 million increase in tooling revenues. Tooling project revenues are sporadic in nature and do not represent a recurring trend. Excluding the revenues from the Mexican operation and the completed tooling projects, sales in 2002 were $4.0 million below 2001.
""We are pleased to report that the Company returned to profitability in 2002,"" said James L. Simonton, president and chief executive officer. ""Operational efficiencies in our Columbus operation, coupled with increased sales from our newly established operation in Mexico, enabled us to show an increase in revenues and improved earnings for 2002. We also benefited from increased tooling revenues and the sale of our former ticker symbol.""
""Our newly established Mexican operation continues to perform according to our expectations,"" said Simonton. ""For the year 2002, these operations have produced sales of $20.5 million and contributed to our profits. As we move to 2003, we will continue our efforts to grow this operation by expanding our customer base and enhancing the business systems and skill base necessary to support future growth.""
Mr. Simonton also reinforced the strategic value of this acquisition and the expanded capabilities as Core evolves from a molder of sheet molding composites (SMC) to an increasingly diversified molding company capable of serving customers throughout their entire product lifecycle. Core now has the ability to serve customers with hand layup and sprayup for low volumes; vacuum resin infusion (V-RIM) molding for intermediate volumes; and compression molding for higher volumes.
As noted above, our 2002 sales excluding the Mexican operation and completed tooling projects were $4.0 million below 2001, a decrease of 6%. During the year we experienced a full year of business with new truck customers which allowed us to partially offset the negative effects of declining truck volumes, pricing pressures and the discontinued business relationship with an agricultural equipment manufacturer in mid 2001.
Simonton continued, ""The Company continues to be impacted by excess capacity and sluggish demand. In 2003, it is expected that we will continue to be affected by the general weakness in the economy and the uncertain effect of the war in the Middle East. We will continue to focus on improving operational effectiveness, through our lean manufacturing/six sigma efforts, while positioning ourselves to compete for additional business and prepare for the eventual upturn in the economy.""
Core Molding Technologies, Inc. is a compounder of sheet molding composites (SMC) and molder of fiberglass reinforced plastics. The Company's processing capabilities include the compression molding of SMC, vacuum assisted resin infusion molding, spray up and hand lay up processes. 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. Core Molding Technologies, with its headquarters in Columbus, Ohio, operates plants in Columbus, Gaffney, South Carolina, and Matamoros, Mexico.
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