On August 10, 2020, small company in Columbus, Ohio issued a press release announcing its second quarter financial results. There is nothing particularly special about that. Core Molding Technologies, a so-called dark company that trades over the counter, does this every quarter.
In this particular press release, the company disclosed to the world, just like any other public company on the planet, how it was being affected by the Corona-virus Pandemic. So, nothing particularly special about that either.
But what came next was, to me at least, something that caught my attention. The quote, which comes from David Duvall, President and Chief Executive Officer of Core Molding Technologies says “When customers reopened in June and revenues rebounded, to approximately 85% of first quarter’s average monthly revenues, we recorded our highest monthly operating profit of the past five years. It is a clear statement that we have created a stronger company and more resilient organization.”
The underline was added by me.
Darwin’s theory was that the fittest survive. Not the strongest, but the fittest. The fittest for its particular environment. And when the environment changes drastically, the fittest are the ones with the most adaptability.
Every company on this planet has been desperately trying to adapt fast to a new reality. In their struggle to survive, they try to eliminate any excess in their being. Some will go extinct, many will survive.
In many cases, the survivors will have similar things to report as Core Molding. They will be leaner. They will be meaner. And their streamlined costs structures will make them more profitable.