COLUMBUS, Ohio, April 2 /PRNewswire-FirstCall/ -- Core Molding
Technologies, Inc. (NYSE Amex: CMT) today announced results for the
year and fourth quarter ended December 31, 2008. Net income for the
year ended December 31, 2008 was $5,643,000, or $.84 per basic and
$.81 per diluted share, compared with $3,726,000, or $.43 per basic
and $.41 per diluted share, for the year ended December 31, 2007.
Total net sales for 2008 were $116,655,000 compared with
$122,712,000 for 2007. Product sales for 2008 increased 9% to
$110,539,000 from $101,045,000 for 2007. The increase in product
sales is primarily due to increased volume for new production
programs begun in 2007 and 2008. Tooling sales totaled $6,116,000
for 2008 versus $21,667,000 for 2007. Revenue from tooling is
sporadic in nature and does not represent a recurring trend. Total
net sales for the fourth quarter were $27,600,000, compared with
$23,268,000 in the same quarter of 2007. Product sales totaled
$25,663,000 up 17% from $21,965,000 for the fourth quarter 2007.
Net income for the quarter ended December 31, 2008 was $1,375,000,
or $.20 per basic and diluted share, compared with $530,000, or
$.08 per basic and diluted share, in the fourth quarter of 2007.
"Overall 2008 was a very good year for Core Molding Technologies,"
said Kevin L. Barnett, President and Chief Executive Officer. "Even
in this tough economic climate, our product sales increased as a
result of new production models we have recently launched for our
customers. More significantly, our profitability increased 51% over
2007 as a result of improvements in our production efficiencies,
reductions in our fixed manufacturing expenses and as a result of
better fixed cost absorption associated with higher production
volumes," Barnett said. "We have also continued to make good
progress on the construction of our new manufacturing facility in
Matamoros, Mexico. In March 2009, we started up production trials
in the facility and we expect to be fully operational in the new
facility by the end of the second quarter of 2009," continued
Barnett. "Looking forward, 2009 will be a challenging year
considering the weakness in the overall economy as well as the
truck industry outlook. Industry analysts are forecasting an
overall decrease in heavy duty truck production of approximately
30% over 2008 levels. Furthermore, we expect to incur approximately
$2,000,000 of transition and start up expenses related to our new
facility in Mexico in the first half of 2009," said Barnett. "In
response to the decreased sales levels and our new start up, we are
focused on reducing costs and adjusting our operations accordingly.
We believe these actions will lessen the impact of these
conditions. However, our 2009 profitability will be challenged,
particularly in the first half of the year," continued Barnett. "As
in past down cycles, we will actively manage our operations in
light of business conditions while continuing to focus our efforts
on expanding our customer relationships and improving our
operations to continue our previous levels of success," said
Barnett. 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, resin transfer molding, multiple insert
tooling (MIT), spray up and hand lay up processes. The Company
produces high quality fiberglass reinforced, molded products and
SMC materials for varied markets, including light, medium and
heavy-duty trucks, automobiles, automobile aftermarket, personal
watercraft and other commercial products. Core Molding
Technologies, with its headquarters in Columbus, Ohio, 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 press release: 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; compliance 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 Twelve Months Ended 12/31/08 12/31/07
12/31/08 12/31/07 -------- -------- -------- -------- (Unaudited)
(Unaudited) Product Sales $25,663 $21,965 $110,539 $101,045 Tooling
Sales 1,937 1,303 6,116 21,667 ----- ----- ----- ------ Net Sales
27,600 23,268 116,655 122,712 Cost of Sales 22,366 19,810 95,446
105,744 ------ ------ ------ ------- Gross Margin 5,234 3,458
21,209 16,968 Selling, General and Admin. Expense 3,026 2,733
12,020 11,399 ----- ----- ------ ------ Operating Income 2,208 725
9,189 5,569 Interest Expense - Net 148 226 689 175 --- --- --- ---
Income before Taxes 2,060 499 8,500 5,394 Income Tax Expense
(Benefit) 685 (31) 2,857 1,668 --- ---- ----- ----- Net Income
$1,375 $530 $5,643 $3,726 ====== ==== ====== ====== Net Income per
Common Share Basic $0.20 $0.08 $.84 $.43 ===== ===== ==== ====
Diluted $0.20 $0.08 $.81 $.41 ===== ===== ==== ==== Weighted
Average Shares Outstanding: Basic 6,749 6,728 6,742 8,687 =====
===== ===== ===== Diluted 6,764 7,013 6,992 9,004 ===== ===== =====
===== Condensed Balance Sheet (in thousands) As of As of 12/31/08
12/31/07 -------- -------- Assets Cash $ - $ - Accounts Receivable
15,435 12,470 Inventories 9,732 8,344 Other Current Assets 3,330
3,218 Property, Plant & Equipment - net 38,815 30,216 Deferred
Tax Asset - net 5,319 6,174 Other Assets 1,200 1,273 ----- -----
Total Assets $73,831 $61,695 ======= ======= Liabilities and
Stockholders' Equity ------------------------------------ Note
Payable - Bank Line-of-Credit $ 1,194 $ 2,252 Current Portion of
Long-term Debt 2,906 1,866 Accounts Payable 6,866 8,538
Compensation and Related Benefits 4,716 3,350 Accrued Liabilities
and Other 1,665 1,283 Long-term Debt and Interest rate SWAPS 11,631
6,137 Post Retirement Benefits Liability 15,878 16,442
Stockholders' Equity 28,975 21,827 ------ ------ Total Liabilities
and Stockholders' Equity $73,831 $61,695 ======= =======
DATASOURCE: Core Molding Technologies, Inc. CONTACT: Herman F.
Dick, Jr., +1-614-870-5604 Web Site: http://www.coremt.com/
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