Core Molding Technologies, Inc. (CMT) has reported 41.59 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $1.69 million, or $0.22 a share in the quarter, compared with $2.89 million, or $0.38 a share for the same period last year. Revenue during the quarter dropped 19.18 percent to $36.75 million from $45.47 million in the previous year period. Gross margin for the quarter contracted 183 basis points over the previous year period to 17.66 percent. Total expenses were 93.02 percent of quarterly revenues, up from 90.23 percent for the same period last year. That has resulted in a contraction of 279 basis points in operating margin to 6.98 percent.
Operating income for the quarter was $2.57 million, compared with $4.44 million in the previous year period.
"The Company had a solid first quarter, considering the current production level of North American heavy-duty truck production,” said Kevin Barnett, president and chief executive officer. "While product sales were down 15% versus the first quarter of 2016, our market diversification efforts over the past several years helped soften the impact of the decline in truck production. We are also encouraged that product sales increased over the levels reported in the third and fourth quarters of 2016."
Debt comes down significantly
Core Molding Technologies, Inc. has recorded a decline in total debt over the last one year. It stood at $9 million as on Mar. 31, 2017, down 26.75 percent or $3.29 million from $12.29 million on Mar. 31, 2016. Total debt was 6.49 percent of total assets as on Mar. 31, 2017, compared with 8.90 percent on Mar. 31, 2016. Debt to equity ratio was at 0.09 as on Mar. 31, 2017, down from 0.13 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 40.09 for the quarter from 48.28 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
