SinterCast poised to finish 2011 with record results
Press Release
For Immediate Distribution
* Series production running at record pace of more than 1.5 million Engine
Equivalents per year
* Six new installations commissioned, surpassing announced target of five new
installations
* Ongoing product development with high volume potential beyond the current
product mix
[Stockholm, 8 December 2011] - Series production continues to grow, with
annualised production currently running at a record pace of more than 1.5
million Engine Equivalents (75,000 tonnes/year). The 2011 series production
surpassed full year 2010 results during October and is poised to close 2011 with
50% year-on-year growth. Likewise, Sampling Cup shipments surpassed 2010 full
year results during September and, following record shipment of 22,400 Sampling
Cups during October, the Sampling Cup volume is poised to increase from 102,650
units in 2010 to approximately 150,000 units in 2011.
During November 2010, SinterCast announced that 2011 provided the potential to
be the strongest year for new installations in more than a decade. This was
reconfirmed at the 2011 AGM as a target for five installations. Thus far during
2011, SinterCast has commissioned six new installations, surpassing the target
announced more than one year ago. Together, the increased series production and
installation activities have resulted in a significant increase in revenue, with
year-to-date revenue in October 2011 more than 40% higher than the same period
in 2010.
SinterCast and its foundry customers are actively supporting product development
for new CGI applications beyond the current core sectors for passenger vehicle
V-diesel cylinder blocks and commercial vehicle cylinder blocks and heads. This
ongoing product development provides opportunities for high volume series
production in the near term, and an important broadening of SinterCast's series
production base.
Although economic uncertainty continues to dampen financial markets, the outlook
for SinterCast in 2012 remains positive. Series production shows a clear growth
trend and, while new car sales forecasts in Europe may indicate a decline, this
is primarily influenced by anticipated reductions in small vehicle sales in
southern Europe. SinterCast's current production is linked to large and luxury
vehicles, and this sector does not yet show any decline. Globally, most
analysts forecast foundry production to increase by up to 5% per year until
2015, providing a positive business environment for SinterCast's series
production and new installation opportunities.
"Across the board, 2011 has provided record results and series production growth
of approximately 50%. Our track record for series production growth is strong
and consistent, with every single quarter since 2008 showing positive growth"
said Dr. Steve Dawson, President & CEO of SinterCast. "This growth, combined
with positive feedback from our customers, provides a deep source of motivation
as we look forward to 2012."
For more information, please contact:
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
e-mail: steve.dawson@sintercast.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, Jaguar, Jeep, Kia,
Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce
Power Engineering, Scania, Toyota, Volkswagen, Volvo, VM Motori, and Waukesha
Engine. The SinterCast share is quoted on the Small Cap segment of the NASDAQ
OMX stock exchange (Stockholmsbörsen: SINT). For more information:
www.sintercast.com
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