SinterCast Results July-September 2019

Year-on-year series production increases by 52%

Continued strong Operating Result

Third Quarter 2019

• Revenue for Period: SEK 30.8 million (SEK 19.7 million)
• Operating Result: SEK 14.5 million (SEK 6.0 million)
• Earnings per Share: SEK 2.0 per share (SEK 1.0 per share)
• Cashflow from Operations: SEK 16.2 million (SEK 9.9 million)
• Record annualised quarterly production of 3.5 million Engine Equivalents
• Record annualised monthly production of 3.9 million Engine Equivalents in September
• WHB Automotive, Brazil, orders extended trial of SinterCast process control technology

2019 Year-to-Date

• Revenue for Period: SEK 87.2 million (SEK 63.1 million)
• Operating Result: SEK 36.3 million (SEK 21.9 million)
• Earnings per Share: SEK 5.2 per share (SEK 3.2 per share)
• Cashflow from Operations: SEK 30.6 million (SEK 20.8 million)
• 56 Installations in 14 Countries: 25 (24) fully automated systems, 26 (22) mini-systems and five (four) tracking systems

Series Production*  

Series production continued to grow in the third quarter, reaching an annualised record of 3.5 million Engine Equivalents for the quarter, providing 52% year-on-year growth.  Series production reached the new all-time high of 3.9 million Engine Equivalents in September.

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

CEO Comments

Record production as year-to-date revenue reaches full-year 2018 level

Benefitting from record series production of 3.9 million Engine Equivalents in September, annualised series production reached 3.5 million Engine Equivalents in the second quarter of 2019, providing 52% year-on-year growth and setting a new quarterly record.  The third quarter performance also benefitted from solid contributions in July and August, with the continued high demand for pick-up truck and commercial vehicle applications minimising the impact of the traditional summer shutdown period.  In total, five of the last seven quarters have established new records for series production, resulting in the annualised year-to-date production being 32% above the full-year 2018 volume. The growth has resulted in year-to-date revenue of SEK 87.2 million, effectively equalling the full-year revenue of SEK 87.7 million achieved in 2018.

The strong series production resulted in a 30% year-on-year increase in Sampling Cup shipments, with 55,700 units shipped in the third quarter; the second highest quarterly volume.  The higher Sampling Cup volume benefited from the significant increase in the core cylinder block and head production, and was also influenced by order timing.  These effects compensated for the lower Sampling Cup demand from exhaust component production in China, bringing the year-to-date Sampling Cup consumption to 144,100 units; just 1.5% behind the 2018 volume for the same period.  The third quarter also benefitted from strong installation activity, with year-to-date installation revenue reaching SEK 9.5 million, approximately 45% higher than the historical full-year average of approximately SEK 6.5 million.  Together, the increases in series production, Sampling Cup shipments and installation activity resulted in a 38% increase in revenue and a 65% increase in the operating result for the first three quarters of the year.

Positive outlook for installation revenue

During the second quarter, the WHB foundry in Brazil ordered an extended trial of the SinterCast process control technology for the production of Compacted Graphite Iron (CGI).  The System 4000 is scheduled to be commissioned during the fourth quarter of 2019, with the trial concluding during the first half of 2020.  WHB reserves the right to exercise a purchase option to acquire the System 4000 at the conclusion of the trial, providing a potential contribution to the 2020 installation revenue.  The outlook for 2020 installation revenue is also buoyed by the previously announced System 4000 Plus installation at the new Scania foundry in Sweden, scheduled for mid-2020.   

Several other installation discussions are ongoing for CGI process control systems, capacity upgrades, and Tracking Technologies installations in grey iron, CGI and ductile iron foundries.  In addition to these current installation 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, and to broaden our product portfolio and our production base.

Nomination Committee

The Nomination Committee, elected by the Annual General Meeting 2019, consists of Ulla-Britt Fräjdin-Hellqvist, Chairman, Andrea Fessler, Jan Åke Jonsson, Chairman of the Board of Directors and Aage Figenschou. Shareholders wishing to provide input or proposals should provide written submissions to the Nomination Committee (e-mail:  nomination.committee@sintercast.com) at least seven weeks prior to the Annual General Meeting for the proposal to be included in the notice of the meeting.

Annual General Meeting

The Annual General Meeting 2020 of SinterCast AB (publ) will be held on Tuesday 19 May 2020. Shareholders wishing to have a matter considered at the Annual General Meeting should provide written submissions to agm.registration@sintercast.com or to the company: SinterCast AB (publ), Kungsgatan 2, 641 30 Katrineholm, Sweden, at least seven weeks prior to the Annual General Meeting for the proposal to be included in the notice of the meeting. Further details on how and when to register will be published in advance of the Annual General Meeting.

Information

This report has been reviewed by the company's Auditors.

Stockholm 13 November 2019

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. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 13 November 2019.

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 is 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 agriculture, 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 the SinterCast Ladle Tracker® and SinterCast Cast Tracker® technologies, to improve process control, productivity and traceability in a variety of applications.  With 56 installations in 14 countries, SinterCast is a publicly traded company, quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: www.sintercast.com

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