SinterCast Results April-June 2018

Two consecutive quarters with record series production

24% increase in year-to-date series production

Second Quarter 2018

• Revenue for Period: SEK 26.8 million (SEK 17.2 million)
• Operating Result: SEK 11.0 million (SEK 4.8 million)
• Earnings per Share: SEK 1.6 per share (SEK 0.8 per share)
• Cashflow from Operations: SEK 3.2 million (SEK 2.0 million)
• Record series production of 2.7 million Engine Equivalents in second quarter
• Record Sampling Cup shipments of 68,800 in second quarter
• Tupy orders SinterCast Ladle Tracker® technology for Brazilian foundry

2018 Year-to-Date

• Revenue for Period: SEK 43.4 million (SEK 31.1 million)
• Operating Result: SEK 15.9 million (SEK 7.6 million)
• Earnings per Share: SEK 2.2 per share (SEK 1.2 per share)
• Cashflow from Operations: SEK 10.9 million (SEK 7.4 million)
• Installed Base: 24 fully automated systems and 21 mini-systems in Europe, Asia and the Americas

Series Production *

Series production continued to grow in the second quarter, reaching an annualised record of 2.7 million Engine Equivalents for the quarter. Two of the three months in the second quarter established a new monthly high of 2.8 million Engine Equivalents.

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

CEO Comments

Record production in the first half; positive outlook for the second half

Series production of passenger vehicle cylinder blocks, commercial vehicle cylinder blocks and heads, automotive components, and industrial power components all increased during the second quarter, resulting in record annualised production of 2.7 million Engine Equivalents.  The second quarter production surpassed the previous record of 2.5 million Engine Equivalents set in the first quarter, providing 23% year-on-year growth for the quarter and 24% growth for the first half of the year.  During the second quarter, April and June reached the new single-month high of 2.8 million Engine Equivalents, benefitting from increased commercial vehicle demand in Europe and North America, plus the ramp-up of cylinder block production for industrial power applications and the ramp-up of commercial vehicle components for JMC at the Asimco foundry in China.  The outlook for the second half of the year remains positive, with additional growth expected from the start of production of a new high-volume in-line diesel engine for passenger vehicles during the third quarter.

The second quarter also established a new record for Sampling Cup shipments, with 68,800 Sampling Cups shipped to customers, corresponding to a 109% year-on-year increase.  During the first half of the year, 101,300 Sampling Cups were shipped, providing a year-on-year increase of 64% and putting the company solidly ahead of pace to exceed the previous full-year high of 168,800 Sampling Cups set in 2016.  As a precursor to the series production demand, the increase in Sampling Cup shipments validates the stability of the new production level and reinforces the positive outlook for the second half of the year.

Together, the increased series production and the increased Sampling Cup demand resulted in a 40% increase in revenue and a 109% increase in the operating result for the first half of the year.  The positive outlook for series production also resulted in an additional SEK 14.1 million of the total carried forward tax losses being taken into the deferred tax asset calculation, resulting in an additional SEK 1.0 million being capitalised as a deferred tax asset.

Tracking Technologies contribute to installation revenue 

Following more than two years of production experience with the SinterCast Ladle Tracker® technology at the Tupy foundry in Saltillo, Mexico, Tupy has ordered a Ladle Tracker installation for its production facility in Joinville, Brazil. Scheduled for commissioning in the third quarter, the automated Ladle Tracker system will ensure that every ladle reports to every step in the process and that each step is successfully completed within the pre-set process limits. The installation will provide improved process control and traceability for Tupy and improved quality and confidence for Tupy’s customers.

The second quarter also marked the first order for the SinterCast Cast Tracker™, technology, at the Scania foundry in Södertälje, Sweden. The order follows a successful on-site trial since the autumn of 2017. The scope of the initial order includes tracking of the moulds from sand filling through to core setting, with six different measurement positions to trace the mould manufacturing process and to correlate sand properties to the mould identification. The installation is planned to be finalised during the third quarter and will be used for both grey iron and Compacted Graphite Iron (CGI) production. Discussions are ongoing to expand the functionality to include traceability of the core production.

Installation discussions are ongoing for CGI process control systems, capacity upgrades, and for the new Tracking Technologies in grey and ductile iron foundries, 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. 

Information

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

The Board of Directors and the CEO certify that the half-yearly financial report provides a true and fair overview of the operations, outlook, financial position and results of the Company and the Group, and describes the material risks and uncertainties that the Company and the companies in the Group face.

Stockholm 22 August 2018

For further information please contact:

Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office:    +46 150 794 40
Mobile:   +44 771 002 6342
e-mail:     steve.dawson@sintercast.com
website:  www.sintercast.com

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 22 August 2018. 

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 45 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 2.7 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: www.sintercast.com

                                                                                       END

Tags: