USA. Core Molding Technologies reports Q3 2006 results Print E-mail
Thursday, 09 November 2006
Company news:


Core Molding Technologies, Inc. (AMEX:CMT) has announced results for the third quarter and nine months ended September 30, 2006.

The Company recorded net income for the third quarter of 2006 of $2,938,000, or $.29 per basic and $.28 per diluted share, compared with $1,511,000, or $.15 per basic and $.14 per diluted share, in the third quarter of 2005. Total net sales for the third quarter were $48,078,000, compared with $31,614,000 in the same quarter of 2005. Product sales for the three months ended September 30, 2006 increased 25 percent, to $38,854,000, from $31,045,000 for the same period in 2005, primarily as a result of the strong sales demand from Core's heavy and medium-duty truck customers. Tooling sales totaled $9,224,000 for the third quarter 2006 versus $569,000 for the similar time period in 2005. Revenue from tooling projects is sporadic in nature and does not represent a recurring trend.

For the first nine months of 2006, net income was $7,723,000, or $.77 per basic and $.74 per diluted share, compared with $5,202,000, or $.53 per basic and $.50 per diluted share, in the same period of 2005. Total net sales for the first nine months of 2006 were $124,091,000, compared with $97,790,000 in the first nine months of 2005. Product sales for the first nine months of 2006 increased 21 percent to $112,635,000 from $93,262,000 for the similar period in 2005, primarily as a result of the sales from the Batavia operation acquired in August 2005 and due to sales demand from Core's heavy and medium- duty truck customers as noted above. Tooling sales totaled $11,456,000 for the first nine months of 2006 versus $4,528,000 for the similar period in 2005.

"Throughout 2006 we continue to achieve record revenues and earnings based on the current high demand from our heavy and medium-duty truck customers and our solid operating performance," said James L. Simonton, President and Chief Executive Officer.

In October, Core was named one of "America's 200 Best Small Companies" by Forbes magazine. "We are honored to be named to this prestigious group as one Forbes 200 best small companies and believe it's a reflection of the work of our employees and management team," Simonton said.

The Company has also disclosed the signing of a new supply agreement with International Truck and Engine Corp. The new agreement which includes both International's original equipment and service requirements for fiberglass reinforced products runs through October 31, 2011.

The Company has not adjusted its previously disclosed position that stricter federal emission standards for 2007 are expected to increase demand throughout 2006 from heavy and medium-duty truck customers, while that demand is expected to dampen in 2007. Industry analysts estimate a 20 to 40 percent decrease in new orders for heavy and medium-duty trucks for some part of 2007. "Partially offsetting this anticipated decline in demand are several new and important product launches with existing customers that will go online next year," Simonton said. The Company has also announced a letter of intent to purchase Premix Holding Company, to further mitigate the cyclical impact of the heavy and medium-duty truck industry
Last Updated ( Thursday, 09 November 2006 )
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