SinterCast Results July-September 2010


                        
  * Revenue for period: SEK 8.3 million (SEK 5.2 million). Year-to-date: SEK
    24.9 million (SEK 14.5 million)
  * Operating result: SEK 2.0 million (SEK -1.5 million). Year-to-date: SEK 3.3
    million (SEK -5.2 million)
  * Earning/share: SEK 0.5 per share (SEK 1.8 per share). Year-to-date: SEK 1.1
    per share (SEK -0.3 per share)
  * Cashflow: SEK 0.5 million (SEK 17.6 million). Year-to-date: SEK 1.2 million
    (SEK 17.7 million)
  * Series production exceeds annualised rate of one million Engine Equivalents
    in August and September
  * VM Motori launches 3.0 litre engine with SinterCast-CGI cylinder block and
    bedplate

    Annualised Series production surpassed the one million Engine Equivalent
                                   milestone
in the third quarter providing year-on-year growth of 120% compared to September
                                      2009

Current Production and Outlook
Annualised  series production reached 1,050,000 Engine Equivalents in August and
grew  further to 1,100,000 Engine Equivalents (55,000 tonnes/year) in September,
clearly  demonstrating stable  series production  in excess  of the  one million
milestone  during  the  period.   The  series  production  for  September  2010
represents  a 120% increase  relative to  the production  pace of 500,000 Engine
Equivalents  in September 2009, and a  47% increase compared to the pre-economic
downturn  high of 750,000 Engine Equivalents established in September 2008.  The
significant  growth in series production is primarily derived from the continued
ramp-up  of the  Ford 6.7 litre  V8 engine  and from increased exhaust component
production  in China; however, the launch of the Navistar 6.4 litre V8, the Land
Rover  4.4 litre V8, and  VM Motori 3.0 litre  V6 diesel engines during 2010 has
also  contributed to  the growth,  providing the  basis for  a positive cashflow
outlook for 2010.

In  conjunction with the Paris  Motor Show, VM Motori  SpA of Italy introduced a
new  3.0 litre  V6  diesel  engine  with  a  SinterCast-CGI  cylinder  block and
bedplate.  The cylinder blocks and bedplates began series production at the Tupy
foundry  in Brazil during mid-2010 and become  the sixteenth and seventeenth CGI
components  to  be  produced  by  Tupy  using  the  SinterCast  process  control
technology.   Following pre-machining  of the  cylinder blocks  and bedplates at
Tupy,  final  machining  and  engine  assembly  are performed in a purpose-built
manufacturing facility at VM Motori in Cento, Italy. The Euro 5 compliant engine
is  capable of  240 horsepower (59  kW/litre) and  550 Nm of torque  and will be
available  in 2011 model  year vehicles  in the  European market.  The VM Motori
engine  reconfirms that  CGI has  effectively become  the standard  material for
passenger  vehicle V-diesel  engines, providing  the best  combination of weight
reduction,  compact  design,  performance,  NVH,  durability  and  environmental
efficiency.

As  part of  SinterCast's ongoing  efforts to  increase the  awareness of CGI in
China,  press conferences  were held  in Shanghai  and Beijing for 18 of China's
leading  automotive journals.   SinterCast also  provided a  half-day technology
seminar  at China's only  foundry conference devoted  specifically to automotive
foundries.   These presentations, together with the ongoing direct contacts that
have  been established with the main automotive foundries, are an important part
of the strategy to establish and grow the SinterCast brand in China.

Based  on the current production programmes and the potential market development
during  SinterCast's  five  year  planning  horizon,  the  five  year outlook is
summarised as follows:

                          Approximate Annual Production Potential and
                                            Revenue

                          30 September 2010          30 June 2010

Activity                     KEQVS* MSEK/yr** KEQVS*           MSEK/yr**

Current Series                1,100        22    950                  22
Production(1)

Potential Mature              1,350        30  1,300                  30
Volume(2)

Production Orders               450         9    400                   9
Secured(3)

Development Pipeline(4)       2,500        58  2,500                  58

Near-term Market              4,300        97  4,200                  97
Opportunity(5)



 Notes: 1. Current annualised production rate

        2. Annualised potential mature volume of Current Series Production
           (Item 1 above) when fully ramped-up

        3. Annualised mature volume of programmes for which SinterCast's foundry
           customers have received production orders, but have not yet started
           series production

        4. Annualised mature volume of development programmes that SinterCast is
           currently supporting, but have not yet been awarded as series
           production orders

        5. Total Near-term Market Opportunity (sum of items 2, 3 and 4)

        *  KEQVS: Thousands of Engine Equivalents

        ** Assumes SEK 23 per Engine Equivalent, depending on exchange rates

Financial Summary

Revenue
The  revenue for the SinterCast Group relates primarily to income from equipment
(sales and leases), series production and engineering service.

Revenue Breakdown                               July-September January-September

                                                  2010    2009   2010       2009
--------------------------------------------------------------------------------
Number of Sampling Cups shipped                 23,400  15,400 72,050     36,000

Equipment (1)                                      0.2     0.3    1.5        2.3

Series Production (2)                              7.8     4.5   22.2       10.9

Engineering Service( 3)                            0.3     0.4    1.0        1.3

Other( )                                           0.0     0.0    0.2        0.0
--------------------------------------------------------------------------------
Total                                              8.3     5.2   24.9       14.5
--------------------------------------------------------------------------------
(Amounts in SEK million if not otherwise
stated)

Notes: 1. Includes revenue from system sales and leases and sales of spare parts

       2. Includes revenue from production fees, consumables and software
          licence fees

       3. Includes revenue from technical support, on-site trials and sales of
          test pieces



The  July-September 2010 revenue amounted to SEK 8.3 million (SEK 5.2 million).
The  revenue increase of 60% is a result  of the significant increases in series
production  and  Sampling  Cup  shipments.    The revenue from series production
increased  by  73% to  SEK  7.8 million  (SEK  4.5 million),  due  to the record
production  at an  annualised rate  of approximately  1,100,000 (500,000) Engine
Equivalents  and  the  shipment  of  23,400 (15,400)  Sampling Cups. Despite the
increase  in  series  production  during  the  third  quarter  2010, the revenue
decreased  by SEK 0.3 million compared to  the second quarter 2010 mainly due to
lower  equipment and engineering service revenue. Additional engineering service
activities during the period were concentrated mainly on the Pressurised Pouring
Furnace development project.  Development activities amounted to SEK 0.4 million
and have been accounted as investments and credited R&D costs.

The  January-September  2010 revenue  amounted  to  SEK  24.9 million (SEK 14.5
million).  The  revenue  increase  of  72% is  as  a  result  of the significant
increases  in series production, the doubling of the Sampling Cup shipments, and
the  invoicing of the Mini-System 3000 to  First Automobile Works in China.  The
revenue  from series production increased by 104% to SEK 22.2 million (SEK 10.9
million).

Results

Results Summary                                 July-September January-September

                                                2010      2009 2010         2009

Operating Result                                 2.0      -1.5  3.3         -5.2

Result for the period                            3.0      10.1  7.4         -1.6

Result after tax per share (SEK)*                0.5       1.8  1.1         -0.3

(Amounts in SEK million if not otherwise
stated)
*Based on 6,478,383 shares
The  July-September 2010 operating  result of  SEK 2.0 million (SEK -1.5million)
was primarily affected by the higher gross result of SEK 3.4 million compared to
the  same period 2009. The R&D costs were  reduced by SEK 0.4 million due to the
activation  of Pressurised Pouring  Furnace and development  project. The result
after  tax for the  July-September 2010 period amounted  to SEK 3.0 million (SEK
10.1 million),  primarily related to the revaluation  of the deferred tax asset,
as described in the section entitled "Deferred Tax Asset".

The  January-September  2010 operating  result  of  SEK  3.3 million  (SEK -5.2)
million  was primarily  affected by  the higher  gross result of SEK 9.2 million
compared to the same period 2009. The result after tax for the January-September
2010 period amounted to SEK 7.4 million (SEK -1.6 million), primarily related to
the  revaluation of the deferred tax asset, as described in the section entitled
"Deferred Tax Asset".

Deferred Tax Asset
SinterCast   calculates   its  estimated  future  taxable  profit  from  secured
production  orders on a quarterly basis, in  order to determine the valuation of
its deferred tax asset.

Deferred Tax Asset                       July-September  January-September   FY

                                         2010 2009     2010           2009 2009
--------------------------------------------------------------------------------
Estimated future taxable profit          97.0 80.3     97.0           80.3 80.3

Change in carry-forward tax loss taken    4.8 40.4     16.7           10.3 10.3
into consideration

Deferred tax on carry-forward tax losses 25.5 21.1     25.5           21.1 21.1

Change in deferred tax due to the result -1.3    -     -1.3              -    -
for the period

Deferred tax asset                       24.2 21.1     24.2           21.1 21.1



Change in deferred tax on carry-forward   1.3 10.7      4.3            2.7  2.7
tax losses

Change in deferred tax due to the result -1.3    -     -1.3              -    -
for the period

Income tax                                0.0 10.7      3.0            2.7  2.7
--------------------------------------------------------------------------------
(Amounts in SEK million
if not otherwise stated), (FY: Full
Year)

SinterCast  has reassessed the estimated future  taxable profit and deferred tax
asset  calculation from  secured orders  to reflect  the current  expectation of
programme  longevity  and  the  typical  lifecycle  for engine programmes in the
automotive  industry.  As  of  30 September  2010, SEK  97.0 million  (SEK 80.3
million)  of SinterCast's total carried-forward tax losses have been used as the
basis  of  the  updated  calculation,  resulting  in SEK 25.5 million (SEK 21.1
million)  being capitalised as a deferred tax  asset. Due to the positive result
for the period, the deferred tax asset has been reduced by SEK -1.3 million (SEK
0.0 million) to SEK 24.2 million (SEK 21.1 million).

Employee Stock Option Programme
As  of  30 September  2010, the  cost  of  the  employee  stock option programme
2009-2013 was calculated at a total amount of SEK 3.2 million (SEK 3.3 million),
based on a closing share price of SEK 52.0 (SEK 49.4). Thus far during 2010, SEK
1.1 million  (SEK 0.7 million)  has been  accounted for  as costs related to the
option programme.

Cashflow, Liquidity and Investments
The July-September 2010 cashflow result was SEK 0.5 million (SEK 17.6 million),
providing a Group liquidity of SEK 26.0 million (SEK 26.7 million) on 30
September 2010.  The successful completion of the warrant programme resulted in
a net cash injection of SEK 11.3 million on 6 October 2010 and will appear in
future liquidity reports.  It is noted that the cashflow result from operating
activities was positive during the period.  The increase in working capital
required during the period relates to increased receivables and reduced
liabilities.

Investments  during the  period amounted  to SEK  0.5 million (SEK 1.2 million),
mainly relating to the activation of the Pressurised Pouring Furnace development
project.

Cashflow Summary                    July-September January-September

                                    2010      2009 2010         2009
--------------------------------------------------------------------
Cashflow from operating activities   2.9      -1.2  5.3         -4.0

Cashflow from working capital       -2.4       0.0 -3.9          0.6

Cashflow from investment activities  0.0       0.2 -0.2         -0.5
Cashflow from financing activities     -      18.6    -         21.6
--------------------------------------------------------------------
Cashflow total                       0.5      17.6  1.2         17.7

Liquidity                           26.0      26.7 26.0         26.7

Investments                          0.5       1.2  0.7          1.2
--------------------------------------------------------------------
(Amounts in SEK million if not otherwise stated)
Current  liquidity  is  SEK  26.0 million,  with  an additional SEK 11.3 million
received  on  6 October  2010 from  the  warrants  related  to  the rights issue
conducted  during September  2009 and the  potential for  an additional SEK 1.7
million  from the exercise of the first 15% of the employee stock options during
November-December 2010.

Risks and Uncertainty Factors
Market Development
Despite  the positive increase in series production, the main uncertainty factor
for  SinterCast continues to  be the overall  timing of the  CGI market ramp-up,
which  primarily depends on the global economy  for new vehicle sales and on the
individual   sales   success   of  the  vehicles  equipped  with  SinterCast-CGI
components.   The economic conditions  facing the global  foundry and automotive
industries  have,  in  some  cases,  caused  automotive OEMs to delay production
launches.   In parallel, foundries have delayed  plans for new investment in CGI
production  capacity.  The overall decline in the automotive market has resulted
in  a reduction of SinterCast's near-term  market opportunity calculation from a
peak  of 5.7 million Engine Equivalents on  30 June 2008 to the current value of
4.3 million  Engine Equivalents.   Although the  automotive sector  has begun to
recover, volumes in SinterCast's core markets are still significantly below pre-
downturn levels and the SinterCast-CGI programmes that started production before
3Q08 have  still not fully recovered.  While SinterCast continues to support new
product  development activities, and anticipates new production launches and new
opportunities  for installation revenue, the Board believes that it is still not
possible  to determine the  ultimate effect of  the global economic recession or
the timing and rate of the overall market recovery.

Liquidity
SinterCast  regularly  monitors  its  cash  position  with  reference  to market
forecasts and internal expense budgets.  In consideration of current expense and
revenue  forecasts, the  Board judges  that the  Company's financial position is
secure.  The Company will continue its  prudent approach toward expenses and new
recruitment.

Market Penetration and Competition
SinterCast  has played a leading role in  the development and application of CGI
since  the early 1990's.  SinterCast enjoys global brand recognition and respect
as  the CGI technology leader and is welcomed  by the industry as a reliable and
trustworthy  partner.  However, virtually  every company encounters competition,
and  SinterCast is no exception.  As the  CGI market has developed, some foundry
supply  companies have  proposed alternative  CGI technologies.  To SinterCast's
knowledge,  these have included Hereaus-Electronite, OxyCast, OCC and NovaCast.
It  is also possible that  some foundries may opt  to produce CGI using in-house
control  and discipline, but this  is generally judged to  become less likely as
product  complexity  and  production  volumes  increase,  and  as  specification
requirements  become more rigidly enforced  by the end-users.  SinterCast judges
that  its technology  and engineering  know-how provides  the most  reliable and
cost-effective  solution for the  production of high  quality CGI.  Based on its
proven  technology,  production  experience  and engineering service, SinterCast
will  continue to support new CGI development activities to further increase its
share  of the world CGI production capacity.  With respect to the development of
alternative  automotive technologies such  as biofuels, hybrids  and fuel cells,
SinterCast  does not expect these to have  a significant effect on the Company's
competitive position for the foreseeable future.

Personnel
As  of 30 September  2010, the Group  had 13 (13)  employees, two (two) of which
were female.  The core technical staff has the necessary skills and resources to
support  ongoing  customer  activities  and  to  support the current intensified
market  development. Further recruitment will be  phased with the development of
field activities, particularly the need to support new installations.

Accounting Principles
The  information provided on behalf of the Group in this interim report has been
prepared  in accordance  with Sweden's  Annual Accounts  Act and  IAS 34 Interim
Financial  Reporting. The reporting for the  Parent Company has been prepared in
accordance  with  Sweden's  Annual  Accounts  Act  and  RFR 2.3.  The accounting
policies  that have been applied for the Group and for the Parent Company are in
agreement  with the accounting policies used in the preparation of the Company's
latest annual report. New accounting principles, which came into effect as of 1
January 2010, have not affected the financial statements.

No  material transactions have  taken place between  SinterCast and the Board or
the Management during the period.

Events after the Balance Sheet Date
The  successful  completion  of  the  warrant  programme  resulted in a net cash
injection  of SEK 11.3 million  on 6 October 2010.  Transaction  fees related to
the  exercise of  the warrants  were approximately  SEK 0.1 million.  There have
been  no other significant  events since the  balance sheet date of 30 September
2010 that could materially change these financial statements.

Parent Company
SinterCast  AB  (publ)  is  the  Parent  Company  of  the SinterCast Group, with
registered  office located in Stockholm, Sweden.  The Parent Company has 10 (10)
employees.   The majority of the operations are conducted by the Parent Company,
including  responsibility  for  the  representative  office  in  China and sales
representatives  in Australia, India, Japan and  Korea. Operations in the UK and
the USA are managed by the local companies.  The information given for the Group
in this report corresponds in all material respects to the Parent Company.

Annual General Meeting
The  Annual General Meeting 2011 of SinterCast AB  (publ) will be held on 19 May
2011.

Nomination Committee
The  Nomination Committee, elected by  the Annual General Meeting 2010, consists
of  Ulla-Britt  Fräjdin-Hellqvist,  Lars  Ahlström  and  Torbjörn  Nordberg. The
Nomination Committee can be contacted at:
nomination.committee@sintercast.com

Information
The  Interim  Report  October-  December  and  Full  Year  Results  2010 will be
published on 18 February 2011
The Interim Report January-March 2011 will be published on 4 May 2011
The Interim Report April-June 2011 will be published on 24 August 2011
The Interim Report July-September 2011 will be published on 2 November 2011

For further information please contact:

Dr. Steve Dawson

President & CEO

SinterCast AB (publ)

Tel:    +46 8  660 7750

Mobile: +44 771 002 6342

e-mail: steve.dawson@sintercast.com

website:      www.sintercast.com


Review report
We have reviewed this report for the period 1 January 2010 to 30 September 2010
for SinterCast AB (publ). The board of directors and the CEO are responsible for
the preparation and presentation of this interim report in accordance with IAS
34 and the Swedish Annual Accounts Act. Our responsibility is to express a
conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review
Engagements SÖG 2410, Review of Interim Report Performed by the Independent
Auditor of the Entity. A review consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Standards on Auditing in Sweden, RS,
and other generally accepted auditing standards in Sweden. The procedures
performed in a review do not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe
that the interim report is not prepared, in all material respects, in accordance
with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with
the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 3 November 2010

Öhrlings PricewaterhouseCoopers


Anna-Carin Bjelkeby
Authorised Public Accountant
Auditor in charge


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 weight, noise and emissions. The SinterCast technology is used for the
production of more than 40 CGI components, ranging from 2 kg to 17 tonnes, all
using the same proven process control technology.  The end-users of SinterCast-
CGI components include Aston Martin, Audi, Caterpillar, Chrysler, DAF Trucks,
Ford, Ford-Otosan, General Electric Transportation Systems, General Motors,
Hyundai, Navistar, Jaguar, Kia, Land Rover, MAN, Porsche, PSA Peugeot-Citroën,
Renault, Rolls-Royce Power Engineering, Toyota, Volkswagen, VM Motori, Volvo and
Waukesha Engine. The SinterCast share is quoted on the Small Cap segment of the
NASDAQ OMX stock exchange (Stockholmsbörsen: SINT).

                                    - END -

 The full report with tables can be downloaded from the following link:




Subscribe

Documents & Links