Record results - positive outlook
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)
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.
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
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