Year-on-year series production increases by 52%
Continued strong Operating Result
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)
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.
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: 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 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 firstname.lastname@example.org (http://file:///C:/Users/Daphner/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/BGWPXRZQemail@example.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.
Interim Reports Publication Date
October-December 2019 and Full Year Results 2019 19 February 2020
January-March 2020 21 April 2020
April-June 2020 19 August 2020
July-September 2020 28 October 2020
This report has been reviewed by the company's Auditors.
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