SinterCast Annual General Meeting 2010
* Board of Directors and Nomination Committee re-elected
* Audi launches second generation V6 diesel engine with increased
SinterCast-CGI volumes
[Stockholm, 20 May 2010] - The SinterCast AB (publ) Annual General Meeting (AGM)
was held on 20 May 2010 in Stockholm. During the AGM, Dr Steve Dawson,
President & CEO, presented an overview of recent market activities and provided
an outlook for SinterCast's potential market development. Dr Dawson's
presentation showed that the recent growth in SinterCast's series production
volume - from 400,000 Engine Equivalents per year at last year's AGM to the
current annualised level of more than 900,000 Engine Equivalents per year - is
primarily due to the ramp-up of new components that began series production
during the past year. This includes the Ford 6.7L V8 engine used in North
American Super Duty pick-up truck applications and the current production of ten
different exhaust components at the Dashiang foundry in China. In contrast to
these new high volume programmes, the production rate of most of the components
that began production prior to the onset of the global economic crisis continues
to be lower than the pre-downturn volume, although the first quarter of 2010 was
the first quarter since 3Q08 to provide increased volumes for the older
programmes. Continued growth of the recently launched programmes, combined with
additional new programme launches and the anticipated recovery of the older
programmes provides an opportunity for positive cashflow in 2010 and future
growth. As in previous years, new installation opportunities continue to have
an important influence on the cashflow result. Although several installation
discussions are ongoing, the continued restrictions on capital investment in the
foundry industry make it difficult to predict the timing for new installation
commitments.
Dr Dawson's presentation also introduced the second generation Audi 3.0L V6
diesel engine that was launched at the Vienna Motor Symposium on 29 April. The
new 3.0L V6 is available in three power ratings, ranging from 150 to 184 kW (200
to 246 horsepower), all with CGI cylinder blocks, and all providing 22-29%
improved fuel economy and reduced CO(2) emissions. The second generation 3.0L
engine replaces Audi's 2.7L V6 that had previously been produced with a grey
iron cylinder block. With increased CGI experience, the design engineers at
Audi reduced the weight of the new cylinder block by 6.5 kg and reduced the
total weight of the engine from 218 to 193 kg, which is 15 kg lighter than the
nearest 3.0 litre V6 diesel engine produced with an aluminium cylinder block.
The second generation V6 will begin production at the Tupy foundry in Brazil
during mid-2010 and will provide increased SinterCast-CGI volumes due to the
replacement of the 2.7 litre engine.
In closing, Dr Dawson confirmed that the securing of the Company's finances and
the launch of the System 3000 in the second half of 2009, combined with the
recent upturn in series production, has provided a great sense of motivation for
the SinterCast employees. The Company is confident that it has the necessary
resources to meet the current increased level of field activities and remains
committed to realising the goal of millions of SinterCast-CGI vehicles on the
roads.
The AGM authorised the Board to acquire and dispose of SinterCast shares such
that the Company's shareholding at any given time shall not exceed ten percent
of the total shares in the Company, and to transfer the number of SinterCast
shares that the company holds at any given time, with a deviation from the
shareholders' pre-emptive rights. This authorisation enables the Company to buy
its own shares so as to adapt the capital structure of the company to the
capital requirements at any given time and to be able to transfer shares in
connection with the potential acquisition of a company or business.
During the AGM, Ulla-Britt Fräjdin-Hellqvist, Aage Figenschou, Andrea Fessler,
Robert Dover and Steve Dawson were re-elected as Board members, with Ulla-Britt
Fräjdin-Hellqvist re-appointed as Chairman. The AGM also decided upon the
constitution of the Nomination Committee until the next AGM, comprised of
Ulla-Britt Fräjdin-Hellqvist, Lars Ahlström, with the primary responsibility to
represent large shareholders, and Torbjörn Nordberg, with the primary
responsibility to represent small shareholders.
For and on behalf of the Board of Directors:
Ulla-Britt Fräjdin-Hellqvist Dr. Steve Dawson
Chairman President & CEO
Tel: +46 8 660 7750 Tel: +46 8 660 7750
e-mail: u-b.frajdin-hellqvist@sintercast e-mail: steve.dawson@sintercast.com
.com <mailto:steve.dawson@sintercast
<mailto:u-b.frajdin-hellqvist@si .com>
ntercast.com>
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. SinterCast produces a variety of 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, Volvo and Waukesha Engine. The SinterCast share
is quoted on the Small Cap segment of the Nordic Exchange, Stockholm
(Stockholmsbörsen: SINT).
END
