Core Molding Technologies Inc (NYSE: CMT)

Core Molding Technologies, Inc. operates as a molder of thermoplastic and thermoset structural products within the engineered materials market. The company produces molded products for markets such as medium and heavy duty trucks, power sports, building products and various industrial applications. Headquartered in Columbus, Ohio, the company runs six production facilities located in the United States, Canada, and Mexico.

Revenue is generated primarily from the sale of molded structural products produced through processes such as Sheet Molding Compound, Direct Long Fiber Thermoplastic, Vacuum Resin Transfer Molding, Structural Foam and Web Injection Molding, Reaction Injection Molding, Hand Lay Up and Spray Up. The company also earns revenue from the direct sale of engineered materials like Sheet Molding Compound and from value added services including assembly machining and prime or topcoat painting. Customers are mainly original equipment manufacturers in the truck power sports building and industrial sectors who purchase finished components or raw material for further processing.

The company operates through the following segments.

• The Molding of Thermoplastic and Thermoset Structural Products segment encompasses the design and manufacture of structural components using processes such as Sheet Molding Compound Direct Long Fiber Thermoplastic Vacuum Resin Transfer Molding Structural Foam and Web Injection Molding Reaction Injection Molding Hand Lay Up and Spray Up serving markets including medium and heavy duty trucks power sports building products and various industrial applications.

Core Molding Technologies, Inc. considers itself one of the largest compounders and molders of thermoset and thermoplastic structural products in North America. Key competitors include Molded Fiber Glass Companies CSP Ashley Industrial Molding René Matériaux Composite Ltée STS Group and 20/20 Custom Molded Plastics. The company’s competitive advantages stem from the inherent benefits of structural plastics over metals such as heat resistance corrosion resistance lighter weight lower cost greater design flexibility part consolidation lower tooling costs high strength to weight ratio and dent resistance. Additionally the firm’s ability to employ multiple molding processes and to integrate research and development within its manufacturing operations provides flexibility to meet diverse customer requirements.

The company’s customer base consists primarily of original equipment manufacturers in the truck power sports building and industrial sectors. Major customers that individually account for more than ten percent of sales include BRP Inc International Motors LLC PACCAR Inc Yamaha Motor Corporation and Volvo Group North America LLC. Other customers span a range of industries such as medium and heavy duty trucks power sports building products industrial utilities and commercial markets each contributing less than ten percent of total sales.