Total net sales for the first quarter of 2009 (ended 31 March 2009) were $18,384,000, compared with $29,085,000 for the 2008 quarter.
Core Molding Technologies' product sales for the 2009 quarter dropped 31% to $17,830,000, compared to the similar period in 2008. The fall in sales is mainly a result of the weak North American truck market.
The company’s first quarter results were also hit by approximately US$1.2 million of expenses associated with its new production facility in Mexico. Excluding these costs, the company would have achieved a slight profit for the quarter. It expects the new facility to be fully operational 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,” comments Kevin L. Barnett, President and Chief Executive Officer. “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."
The company is also focussing on customer relationships and process improvements.
"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 US facilities," Barnett says. "We are also using this time to focus our efforts on opportunities to improve our overall operations."
Core Molding Technologies Inc, Columbus, Ohio, is a compounder of sheet moulding compound (SMC) and moulder of glass reinforced plastics (GRP). The company's processes include compression moulding, resin transfer moulding (RTM), spray-up and hand lay-up processes. The composite products and materials for varied markets, including trucks, cars, and personal watercraft.