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SinterCast

SinterCast

SinterCast Results October-December 2018

08:00 / 20 February 2019 SinterCast Press release

Record results - positive outlook 

Fourth Quarter 2018
  • Revenue for Period: SEK 24.6 million (SEK 17.8 million)
  • Operating Result: SEK 7.5 million (SEK 5.4 million)
  • Earnings per Share: SEK 1.4 per share (SEK 0.8 per share)
  • Cashflow from Operations: SEK 4.0 million (SEK 8.5 million); due to increased operating receivables
  • Start of series production for Cummins 6.7L in-line diesel engine for RAM Super Duty pick ups
  • High volume installation commitment for CGI commercial vehicle production at new Scania foundry
  • Intensified CGI and Tracking Technologies installation activity in Europe, Asia and the Americas
Full Year 2018
  • Revenue for Period: SEK 87.7 million (SEK 65.6 million)
  • Operating Result: SEK 29.4 million (SEK 17.7 million)
  • Earnings per Share: SEK 4.6 per share (SEK 2.6 per share)
  • Cashflow from Operations: SEK 24.8 million (SEK 16.9 million)
  • Dividend: Proposed ordinary dividend of SEK 3.50 per share (SEK 2.75 per share) and extraordinary dividend of SEK 1.50 per share (SEK 0.0 per share), equivalent to SEK 35.5 million, paid in two instalments
  • Installed Base: 25 (24) fully automated systems, 23 (20) mini-systems and four (one) tracking systems in 14 (13) countries 

Series Production*

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Annualised production of 2.6 million Engine Equivalents in the fourth quarter resulted in full-year production of 2.5 million Engine Equivalents, providing a 19% increase compared to the previous full-year record.

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

CEO Comments

Record results across the board; positive outlook for series production

In all of our key metrics, SinterCast posted record performance in 2018.  Compared to our previous full-year records, revenue increased by 16%; operating result increased by 11%; earnings per share increased by 21%; Sampling Cup shipments increased by 17%; and, series production increased by 19%, providing double-digit growth across the board.  Within series production, each of our four main sectors contributed to the growth, with year-on-year volumes up by 4% for passenger vehicles; 41% for commercial vehicles; 113% for automotive components other than cylinder blocks and heads; and, 45% for industrial power components.  The full-year production split provided a healthy balance of approximately 50% passenger vehicle, 40% commercial vehicle, and 10% `other' components, with growth opportunities in each sector.

The near-term outlook for series production remains positive, particularly with the start of production of the high volume Cummins 6.7 litre in-line diesel engine for Ram Super Duty pick-up applications.  Launched at the North American International Auto Show on 14 January, foundry shipments of the 6.7 litre SinterCast-CGI cylinder block began during the fourth quarter of 2018.  As a replacement programme for an existing engine, a rapid ramp-up is expected, potentially providing incremental production of approximately 300,000 Engine Equivalents per year

Installation activity continues to intensify

Despite a modest installation result of SEK 4.6 million in 2018, the installation activity increased significantly during the second-half of the year and the current outlook is strong.  The positive outlook includes the planned Ladle Tracker installations at the Tupy foundry in Brazil and at the Poitras foundry in Canada that were announced during 2018, together with the China Shipbuilding Industry Corporation Mini-System 3000 and the Scania System 4000 Plus installations announced during the first quarter of 2019.  With an initial order value of approximately SEK 5 million, and with the start of series production beginning in 2021 and potentially ramping to provide approximately SEK 20 million of incremental running revenue per year before 2025, the Scania order represents a significant step in our long term growth plans and provides the opportunity for SinterCast to continue to deliver double-digit growth. The Scania announcement, published on 29 January 2019, also provided the opportunity for SinterCast to introduce the System 4000 technology - our fourth generation CGI process control technology.  Due to be launched at the GIFA world foundry trade fair in June 2019, the System 4000 will be our base CGI platform at the time of the Scania installation. 

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 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, and to broaden our product portfolio and our production base.

Information

Interim Reports        Publication Date 
January-March 2019 24 April 2019
April-June 2019 22 August 2019
July-September 2019 13 November 2019
October-December 2019 and Full Year Results 2019  19 February 2020
   
Annual Report 2018 Publication Date
The Annual Report of SinterCast AB (publ) 4 April 2019

Annual General Meeting 2019 Date
The Annual General Meeting of SinterCast (publ) 23 May 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 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.  With 52 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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