Core Molding Technologies (CMT) has reported 12.83 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2.03 million, or $0.26 a share in the quarter, compared with $2.33 million, or $0.31 a share for the same period last year. Revenue during the quarter grew 5.39 percent to $49.07 million from $46.56 million in the previous year period. Gross margin for the quarter contracted 245 basis points over the previous year period to 14.58 percent. Total expenses were 93.60 percent of quarterly revenues, up from 92.54 percent for the same period last year. That has resulted in a contraction of 106 basis points in operating margin to 6.40 percent.
Operating income for the quarter was $3.14 million, compared with $3.47 million in the previous year period.
Kevin L. Barnett, president and chief executive officer of Core Molding Technologies, stated, "Despite the challenges resulting from the cyclical downturn in the heavy-duty truck market in 2016, we were pleased with our overall financial performance for the year. Although product sales declined 22% for the year, we delivered a gross margin of 16% and nearly a dollar per share in earnings, indicative of our ability to manage costs during truck market cyclical downturns."
Debt comes down significantly
Core Molding Technologies has recorded a decline in total debt over the last one year. It stood at $9.75 million as on Dec. 31, 2016, down 27.58 percent or $3.71 million from $13.46 million on Dec. 31, 2015. Total debt was 7.23 percent of total assets as on Dec. 31, 2016, compared with 9.63 percent on Dec. 31, 2015. Debt to equity ratio was at 0.10 as on Dec. 31, 2016, down from 0.15 as on Dec. 31, 2015. Interest coverage ratio improved to 48.29 for the quarter from 36.96 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
