Year-on-year series production increases by 15%
as earnings per share grows by 43%
Year-on-year production for the third quarter increased by 15%, to 2.3 million Engine Equivalents. The third quarter production was 11.5% behind the pace of the first half of the year, due to the traditional summer shutdowns in July and August.
* Annualised average production of Engine Equivalents during the quarter (1 Engine Equivalent = 50 kg)
Series production at all-time high for the summer quarter; underlying base remains strong
The third quarter results reinforced the strength of the series production base, with year-on-year volume increasing by 15%, setting an all-time high for the summer quarter. The quarterly volume of 2.3 million Engine Equivalents marked the third highest quarter in our history, despite being 11.5% below the first half of the year due to the traditional summer shutdowns in July and August. In parallel with the increase in production, year-on-year Sampling Cup shipments were up 5%, revenue was up 18% and earnings per share increased by 43%. On a year-to-date basis, Sampling Cup shipments have increased by 41%, revenue has increased by 32%, and earnings per share have increased by 68%. Overall, the production base continues to be strong, providing the potential to reach 3.0 million Engine Equivalents in the near-term.
Series production of the previously announced high volume in-line diesel engine cylinder block for passenger vehicles commenced at the Tupy foundry in Saltillo, Mexico during the third quarter. However, shipment from the foundry has been deferred until the fourth quarter to coincide with the engine production planning of the OEM. The contribution from this new programme has therefore not been included in the third quarter results. Shipment of full volumes, potentially corresponding to approximately 300,000 Engine equivalents per year, is expected to begin before year-end.
Installation activity intensifies
Following orders for the SinterCast Ladle Tracker® system from the Tupy foundry in Brazil and for the SinterCast Cast Tracker™ system from the Scania foundry in Sweden during the second quarter, the momentum for our Tracking Technologies continued during the third quarter, with a Ladle Tracker order from the Poitras foundry in Canada. With the order, Poitras has become the first foundry in the world to adopt the ladle tracking technology for ductile iron production. The Poitras installation will also be the first Ladle Tracker system that operates as an independent stand-alone system, not running under the System 3000 CGI operating platform. Beyond the tracking installations, a CGI Mini-System 3000 was sold to the Kimura foundry in Japan and announced on 1 October. The order will enable Kimura to offer complete CGI casting solutions for automotive, commercial vehicle, and industrial power OEMs for prototyping and niche volume production.
The Kimura installation will be commissioned during the fourth quarter, contributing to the 2018 installation revenue. The timing of the Tupy and Poitras tracking installations may be postponed until the first quarter of 2019 due to higher than normal year-end production demands, deferring the revenue recognition until 2019. Several other Installation discussions are ongoing for CGI process control systems, capacity upgrades, and tracking installations in grey iron, CGI and ductile iron foundries. In addition to the 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.
The Nomination Committee, elected by the Annual General Meeting 2018, consists of Ulla-Britt Fräjdin-Hellqvist, Chairman, Andrea Fessler, Hans-Erik Andersson, 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: email@example.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 2019 of SinterCast AB (publ) will be held on Thursday 23 May 2019. Shareholders wishing to have a matter considered at the Annual General Meeting should provide written submissions to firstname.lastname@example.org 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.
Interim Reports Publication Date
October-December 2018 and Full Year Results 2018 20 February 2019
January-March 2019 24 April 2019
April-June 2019 22 August 2019
July-September 2019 13 November 2019
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