SinterCast Results January-March 2017 - correction

Series production stable, development pipeline positive

First Quarter 2017

• Revenue for Period: SEK 13.9 million (SEK 16.1 million)
• Operating Result: SEK 2.8 million (SEK 4.6 million)
• Earnings per Share: SEK 0.4 per share (SEK 0.7 per share)
• Cashflow from Operations: SEK 5.4 million (SEK 3.0 million)
• Ford announces SinterCast-CGI diesel option for F-150
• JMC introduces new commercial vehicle with 9.0 and 13.0 litre SinterCast-CGI engines
• Installed Base: 24 fully automated systems and 20 mini-systems in Europe, Asia and the Americas

Series Production*

PLEASE NOTE: this graph is corrected and is the correct series production graph for the period
Annualised series production decreased to 2.0 million Engine Equivalents, due to summer shutdowns
in Brazil and temporary reductions in three series production programmes.

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

CEO Comments

Ninth quarter above 2.0 million Engine Equivalents, despite reductions in some programme

Series production in the first quarter reached 2.0 million Engine Equivalents, providing nine consecutive quarters at or above the 2.0 million Engine Equivalent threshold.  However, first quarter production was 6% below the average full-year 2016 volume and year-on-year revenue was down by 14% due to the combined effects of low shipments from the Tupy foundry during the January-February summer shutdown in Brazil; temporary reductions in three high-volume programmes; and, a 20% reduction in Sampling Cup shipments due to shipment timing and inventory adjustment.  The reductions in the series production programmes include: the VM Motori V6 diesel engine used in FCA vehicles, which is awaiting Model Year 2017 emissions approvals in the US; one passenger vehicle programme that is undergoing a planned upgrade of the engine manufacturing facilities; and, one commercial vehicle programme. The contributions from these programmes are anticipated to recover, maintaining the positive series production outlook.  The positive series production outlook is further buoyed by Ford’s 9 January announcement of a 3.0 litre V6 diesel engine option for the Model Year 2018 F-150 pick-up.  Based on a SinterCast-CGI cylinder block, the engine will be the first-ever diesel offered in the F-150.  Together with the 2.7 litre V6 SinterCast-CGI EcoBoost® petrol engine, the introduction of the diesel engine option results in two of the five engine options in America’s best-selling vehicle being based on SinterCast-CGI cylinder blocks.

During February, the Chinese Ministry of Industry granted final approval to a new heavy duty commercial vehicle developed by Jiangling Motors Corporation, Ltd, China’s leading producer of diesel-engined vans, light buses and light duty trucks.  The new truck, which has 9.0 litre and 13.0 litre engine options, was officially launched on 19 April at the 2017 Shanghai International Automobile Exhibition.  Produced using the SinterCast process control technology at the ASIMCO International Casting Co., Ltd foundry in Shanxi, China, the 9.0 litre engine specifies CGI for both the cylinder block and head while the 13.0L engine specifies CGI for the cylinder head.  The launch of these SinterCast-CGI engines, in the world’s largest commercial vehicle market, exemplifies our confidence in heavy duty engines as our largest growth opportunity.

Positive development pipeline 

The recent development activities, both in the external customer market and in the internal product development, contribute to the positive overall outlook.  Externally, new engine development activities are progressing in each of the passenger vehicle, commercial vehicle and industrial power sectors, providing growth opportunities for the series production.  New installation discussions are ongoing, including the expansion of current installations to increase capacity; functionality upgrades to accommodate customer requests for additional process control features; and, new installations for both the core CGI process control technology and for the new tracking technologies.  The introduction of the tracking technologies has been well received in the industry, resulting in opportunities to expand the capability to other metals and to the tracking of moulds, castings, and even the performance of individual operators.  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 cast iron foundry industry. 

Information

The Interim Report April-June 2017 will be published on 23 August 2017
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

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

Stockholm 26 April 2017

For further information please contact:

Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office:   +46 0 150 794 40
Mobile:  +44 771 002 6342
e-mail:    steve.dawson@sintercast.com
website:  www.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 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’s series production components range from 2 kg to 9 tonnes, all using the same proven process control technology.  The SinterCast share is quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: www.sintercast.com

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