Interim report January – June 2017

Challenging market situation

Challenging market situation 

  • Net sales increased by 32 % to 407.0 (307.6) MSEK
  • Operating income increased to 5.5 (4.1) MSEK
  • Net income amounted to -19.2 (9.8) MSEK
  • Earnings per share amounted to -0.93 (0.47) SEK
  • 32 (28) systems were delivered in the period
  • Order intake amounted to 23 (15) EBM systems

For the second quarter:

  • Net sales increased to 214.8 (147.7) MSEK
  • Operating income amounted to -1.6 (-4.8) MSEK
  • Net income amounted to -17.3 (1.5) MSEK
  • 17 (14) EBM systems were delivered in the second quarter
  • Order intake amounted to 15 (9) systems

Challenging market situation 

The Arcam Group continues to grow and during the first six months the increase in sales was 32%. Sales for the period increased to 407.0 (307.6) MSEK and trailing twelve month sales amounts to 747.7 (621.7) MSEK. Operating income for the period was 5.5 (4.1) MSEK and trailing twelve months operating income amounts to -28.4 (30.7) MSEK.

In the first 6 months, we delivered 32 (28) EBM systems. The last twelve months we thus delivered 57 systems.

We continue to pursue and develop our long-term strategy to industrialize the EBM technology and simultaneously developing the metal powder manufacturing and contract manufacturing business. We invest significantly in technology, marketing and manufacturing capacity to meet our customers’ demands and growing expectations on productivity and reliability.

Business status

During the period, we delivered 32 EBM systems. The demand for EBM systems is driven by the aerospace industry that is now moving into production, and by the increasing interest for Additive Manufacturing from the orthopedic industry. However, the customers are still hesitant launching large manufacturing projects. We believe that increased product maturity as well as new application areas will drive more production interest.

The growth in the period is due to the interest from our largest shareholder GE, in EBM systems for test and evaluation. In the period the order intake from GE was 12 EBM systems and 16 systems were delivered to GE.

In the period, we received 23 new orders and the order book by the end of the quarter amounts to 16 EBM systems.

The demand of metal powder for Additive Manufacturing continues to grow rapidly. We continue to secure long-term supply agreements to important customers within the orthopedic and the aerospace industries.

DTI is increasingly active on the market and continue adding new customers and projects to the EBM part of the contract manufacturing business. However, the business continues to be burdened by weak sales for implants made with traditional technology the conventional part of manufacturing was weak in the period. Hence, we have in the period written down the parent company holding in DTI with 35 MSEK. This has no effect on the consolidated numbers for the group. 

Growing organization

We continue to build our organization and during the quarter we have strengthened our organization throughout the group. In early April 2017 Karl Lindblom joined as General Manager for Arcam EBM. We have also strengthened our sales organization within Arcam EBM in the USA, and at AP&C and DTI. At AP&C we have expanded the organization to prepare for the opening of our new metal powder manufacturing plant. The expansion of AP&C's new plant is proceeding according to plan and the new facility is expected to be completed in September. With the new facility, we will potentially more than double our capacity for titanium powder atomization.

More than adding resources within our companies, we now also access GE's expertise and resources, something that will help us to faster develop our technology and ability both on the EBM side and at AP&C and DTI.

With some of the world's largest companies as customers, a strong majority owner with high ambitions and, most important, a team of dedicated and skilled employees, we are well positioned to take advantage of our opportunities on the market for Additive Manufacturing.

Mölndal, Sweden, July 21, 2017

Magnus René,
President & CEO

This information is information that Arcam AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014 and the Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, at 8.30 CET on July 21, 2017.

For further information:

Magnus René, CEO and President, Arcam
Cell: +46 702 79 89 99 or +1 781 266 6957
E-mail: magnus.rene@arcam.com

Arcam Group provides cost-efficient Additive Manufacturing solutions for production of metal components. Arcam’s Electron Beam Melting (EBM®) technology offers design freedom combined with excellent material properties and high productivity. Arcam is, through its solution orientation and comprehensive product offering, an innovative partner for advanced manufacturing, primarily for the aerospace and medical industries. Arcam offers EBM systems through Arcam AB in Sweden, powder metals through AP&C in Canada and implant contract manufacturing through DTI in the U.S.The company is listed on Nasdaq Stockholm and the Head Office is located in Mölndal, Sweden.

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Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00 • www.arcam.com


About Us

Arcam, a GE Additive company, brings together best-in-class Additive Manufacturing systems, the highest quality materials and real-world production expertise, changing the way manufacturers conceive and produce metal components. Together we use our collective knowledge to inspire and disrupt conventional thinking. Through our solution orientation, Arcam is an innovative partner for advanced manufacturing, primarily in the aerospace and medical industries.

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