SinterCast Results April-June 2017

Production rebounds to record high of 2.2 million Engine Equivalents

FCA receives approval to resume diesel sales in USA

Second Quarter 2017

  • Revenue for Period: SEK 17.2 million (SEK 18.3 million)
  • Operating Result: SEK 4.8 million (SEK 5.8 million)
  • Earnings per Share: SEK 0.8 per share (SEK 0.8 per share)
  • Cashflow from Operations: SEK 2.0 million (SEK 4.4 million)
  • Caterpillar ramps up series production of industrial power components
  • Ford V6 diesel production increases in advance of launch in F-150
  • Tupy expands Compacted Graphite Iron production capability in Mexico
  • Teksid upgrades Compacted Graphite Iron production capability in Mexico
  • JMC finalises pre-production for 9.0 and 13.0 litre SinterCast-CGI engines

2017 Year-to-Date

  • Revenue for Period: SEK 31.1 million (SEK 34.4 million)
  • Operating Result: SEK 7.6 million (SEK 10.4 million)
  • Earnings per Share: SEK 1.2 per share (SEK 1.5 per share)
  • Cashflow from Operations: SEK 7.4 million (SEK 7.4 million)
  • Installed Base: 24 fully automated systems and 20 mini-systems in Europe, Asia and the Americas

Series Production*   


Annualised series production increased to 2.2 million Engine Equivalents, equalling the all-time high. Three of the last five quarters have been at the all-time high, showing the stability of the series production foundation.

* Annualised average production of Engine Equivalents during the quarter (1 Engine Equivalent = 50 kg)

CEO Comments

Positive outlook as Ford and FCA engine production poised to increase
Following series production of 2.0 million Engine Equivalents in the first quarter, series production reached the all-time high of 2.2 million Engine Equivalents in the second quarter. The increase in production was primarily due to the recovery of the Ford V6 diesel engine following retooling of the manufacturing line to increase capacity, and to the continued ramp-up of industrial power engine components at the Caterpillar foundry in the United States. Overall, the half-year annualised series production is 1.2% below the full-year 2016 volume. Despite the stable production, the year-to-date revenue is approximately 10% lower, primarily due to a 25% decrease in year-to-date Sampling Cup shipments, caused by order timing and inventory adjustments. Sampling Cup shipments are expected to increase during the second half of the year. The second quarter production resulted in three of the last five quarters equalling the all-time high of 2.2 million Engine Equivalents, despite temporary reductions in some high-volume programmes. This shows the strength of the underlying series production foundation that is diversified over approximately 65 programmes, providing a profitable base and a stable platform for future growth.

The series production outlook for the second-half of the year remains positive, with the potential for increased volumes of the Ford 3.0 litre V6 diesel leading up to the start of foundry production for the new diesel F-150 pick-up in North America, and resumed series production of the FCA 3.0 litre V6 diesel in the second half of the year. On 28 July, FCA announced that the United States Environmental Protection Agency and the California Air Resources Board have approved the Model Year 2017 diesel engine for sales in the Ram 1500 pick-up and in Jeep Grand Cherokee vehicles. The outlook for the second half is also buoyed by the pending start of production of the new Jiangling Motors (JMC) cargo truck in China. Announced on 19 April at the 2017 Shanghai International Automobile Exhibition, the new truck offers a 9.0 litre engine option with SinterCast-CGI cylinder block and head, or a 13.0 litre engine with a SinterCast-CGI cylinder head. The JMC production is scheduled to begin during the autumn.

Foundries prepare for increased production
During the quarter, the Tupy foundry in Saltillo Mexico ordered an upgrade of the existing SinterCast process control system to the full System 3000 Plus standard for its Heavy Duty Moulding Line. The upgrade was ordered in advance of the start of production of a new high volume CGI cylinder block for a new passenger vehicle application. The Heavy Duty line is capable of supporting CGI series production for both passenger vehicles and commercial vehicles. Also during the quarter, the Teksid foundry in Monclova Mexico ordered a capacity and functionality upgrade to expand the existing System 3000 installation to the System 3000 Plus standard, in preparation for the start of production of an industrial power CGI engine component.

Several new installation discussions are ongoing for CGI process control systems, and for the expansion of existing installations to increase capacity or to incorporate additional process control features. Beyond the core CGI activity, the installation intensity has been augmented by the introduction of the SinterCast Ladle Tracker®, Cast Tracker and Operator Tracker technologies. The Tracking Technologies have been well received in the industry, adding to the recognition of SinterCast as a creative and competent provider of unique precision measurement and process control technologies to the metals industry. Tracking discussions are ongoing for CGI applications, grey and ductile iron foundries, steel mills, and for other metal processing applications. As production references become established, the suite of Tracking Technologies will begin to contribute to the total installation revenue. In addition to the new tracking opportunities, SinterCast is also investigating the development of other unique technologies – within and beyond the scope of thermal analysis – to improve quality and production efficiency in the metals industry.

The Interim Report July-September 2017 will be published on 22 November 2017
The Interim Report October-December and Full Year Results 2017 will be published on 21 February 2018
The Interim Report January-March 2018 will be published on 25 April 2018
The Interim Report April-June 2018 will be published on 22 August 2018

This report has not been reviewed by the company’s Auditors.

Stockholm 23 August 2017

For further information please contact:

Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office:   +46 150 794 40
Mobile:  +44 771 002 6342

This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 23 August 2017. 

SinterCast is the world’s leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). With at least 75% higher tensile strength, 45% higher stiffness and approximately double the fatigue strength of conventional grey cast iron and aluminium, CGI allows engine designers to improve performance, fuel economy and durability while reducing engine size, weight, noise and emissions. The SinterCast technology, with 44 installations in 13 countries, is primarily used for the production of petrol and diesel engine cylinder blocks and exhaust components for passenger vehicles, medium-duty and heavy-duty cylinder blocks and heads for commercial vehicles, and industrial power engine components for marine, rail, off-road and stationary engine applications. SinterCast supports the series production of components ranging from 2 kg to 9 tonnes, all using the same proven process control technology.  As a specialist supplier of precision measurement and process control solutions to the metals industry, SinterCast also supplies a suite of tracking technologies, including the SinterCast Ladle Tracker®, Cast Tracker™ and Operator Tracker™, to improve process control, productivity and traceability in a variety of applications.  The SinterCast share is quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: