The following is a summary of the Core Molding Technologies, Inc. (CMT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Core Molding Technologies reported annual net sales of $358 million in 2023, a decrease of 5% from 2022.
Despite a decrease in sales, the company improved its gross margins by 410 basis points to 18% and generated free cash flows of $26 million.
Full-year record results were reported for net income, earnings per share, and cash flows.
In Q4 2023, the company continued to improve gross margin and adjusted EBITDA margins despite softer sales.
The Board authorized a $7.5 million stock repurchase program.
Business Progress:
Core Molding Technologies issued its first-ever Sustainability Report in 2023 and was acknowledged for its ethical standards and sustainability.
The company implemented a formalized continuous improvement system and anticipates a cyclical correction in the North American Class 8 truck market in 2024.
To foster growth, the company won $17 million of new business set to launch in 2024-2025 and is pursuing a $150 million new business opportunity pipeline.
2024 plans include managing cost structures to align with sales projections and maintaining solid gross margin levels, despite lower customer demand.
Future acquisitions will focus on strengthening sales channels in the industrial and water treatment sectors, within the capacity that can generate $425 to $475 million of annual product revenue.
More details: Core Molding Technologies IR
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