SinterCast Results April-June 2016
(Thomson Reuters ONE) -
Series production at record level, installation outlook positive
Second Quarter 2016
* Revenue for Period: SEK 18.3 million (SEK 15.8 million)
* Operating Result: SEK 5.8 million (SEK 2.9 million)
* Earnings per Share: SEK 0.8 per share (SEK 0.5 per share)
* Cashflow from Operations: SEK 4.4 million (SEK 4.8 million)
* Series production equals record high of 2.2 million Engine Equivalents
* US Automotive Science Group(TM) awards Ford F-150 with CGI engine "Best
Environmental Performance"
* Ladle Tracker(TM) technology launched; first installation in operation
* Teksid System 3000 Plus installation shipped to Brazil in July
2016 Year-to-Date
* Revenue for Period: SEK 34.4 million (SEK 34.6 million)
* Operating Result: SEK 10.4 million (SEK 8.8 million)
* Earnings per Share: SEK 1.5 per share (SEK 1.3 per share)
* Cashflow from Operations: SEK 7.4 million (SEK 9.3 million)
* Installed Base: 24 fully automated systems and 20 mini-systems in Europe,
Asia and the Americas
Series Production*
See PDF for graph
Annualised series production increased to 2.2 million Engine Equivalents,
equalling the all-time high.
* Annualised average production of Engine Equivalents during the quarter (1
Engine Equivalent = 50 kg)
CEO Comments
Strong series production provides stable platform
Following the ramp-up of several new programmes, series production in the second
quarter remained strong and stable, providing six consecutive quarters above the
two million Engine Equivalent threshold, and equalling the all-time high
production of 2.2 million Engine Equivalents. Sampling Cup shipments were also
at an all-time record high of 82,900 units in the first-half of 2016, 10% above
the previous half-year high established in 2015. While most of the series
production programmes provided stable or increased volumes, a small number of
programmes have reported reductions during the first half of 2016. These
reductions were offset by gains in the remaining programmes, resulting in a run-
rate that was 3% higher than the 2015 full-year volume. Passenger vehicles
showed the largest gain due to strong vehicle sales in Europe and North America,
plus the contribution from the ramp-up of the Cummins 5.0 litre V8 for Nissan.
The commercial vehicle volume was also higher, primarily owing to a total market
increase of more than 10% in year-on-year commercial vehicle sales in Western
Europe. The overall outlook remains positive, with a stable platform and the
potential for the start of production of new engine programmes for both
passenger vehicle and commercial vehicle applications.
The installation outlook also remains positive. Installation revenue thus far
in 2016 is behind the pace of 2015, due to order timing. During the second
quarter, a capacity upgrade was commissioned for a North American customer, and
several other capacity upgrades, functionality expansions and new installations
are under discussion for the second half of 2016. Following approvals issued by
Brazilian customs, the Teksid do Brazil System 3000 Plus was shipped during July
and the revenue will therefore be recognised in the third quarter results.
Commissioning of the Teksid installation is scheduled during the autumn.
In the United States, the Automotive Science Group(TM) awarded the Ford F-150,
equipped with the SinterCast-CGI 2.7 litre petrol engine, "best environmental
performance" in the full size truck category. This reinforces the environmental
contribution of SinterCast-CGI in downsized engines and complements earlier
awards for North America's best-selling vehicle, including the 2016 Green Truck
of the Year award. This marks two consecutive years with SinterCast-CGI engines
winning the Green Truck of the Year award.
Launched at the SinterCast AGM on 19 May, the new Ladle Tracker(TM )technology
provides opportunities for additional installation revenue. The product
marketing was reinforced by a joint Tupy-SinterCast presentation of the Ladle
Tracker(TM) technology at the Mexican Foundry Congress in June. The publication
associated with the presentation is expected to be published in the September
edition of the Mexican foundry journal, Fundidores. Following the initial
installation at the Tupy Saltillo foundry, Tupy has ordered an extended Ladle
Tracker(TM) measurement station that is planned to be installed during the third
quarter. A 'stand-alone' version of the Ladle Tracker(TM) technology is
currently being developed to enable the technology to be sold as an independent
product, without the need for a pre-existing SinterCast-CGI installation. The
stand-alone version is expected to be available before the end of 2016. While
the focus of the R&D activity remains on the core CGI technology, SinterCast
continually investigates the development of other unique technologies - within
and beyond the scope of thermal analysis - to improve quality and production
efficiency in the cast iron foundry industry.
Financial Summary
Revenue
The revenue for the SinterCast Group relates primarily to income from equipment,
series production and engineering service.
Revenue Breakdown April-June January-June
(Amounts in SEK million if not 2016 2015 2016 2015
otherwise stated)
-------------------------------------------------------------------------------
Number of Sampling Cups shipped 46,800 34,900 82,900 75,100
Equipment (1) 0.7 0.2 0.8 2.3
Series Production (2) 16.9 15.4 32.7 31.7
Engineering Service( 3) 0.7 0.2 0.9 0.5
Other 0.0 0.0 0.0 0.1
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Total 18.3 15.8 34.4 34.6
Notes: 1. Includes revenue from system sales and leases and sales of
spare parts
2. Includes revenue from production fees, consumables and
software licence fees
3. Includes revenue from technical support, on-site trials and
sales of test pieces
The April-June 2016 revenue amounted to SEK 18.3 million (SEK 15.8 million).
Revenue from series production increased by 10% to SEK 16.9 million (SEK 15.4
million), due to the increased shipment of 46,800 (34,900) Sampling Cups. The
annualised production amounted to approximately 2.2 million (2.2 million) Engine
Equivalents. Equipment revenue amounted to SEK 0.7 million (SEK 0.2 million)
following the sale of equipment to an existing North American customer to
increase production capacity. Engineering Service amounted to SEK 0.7 million
(SEK 0.2 million) following support provided to various customers globally and
the sale of test pieces.
The January-June 2016 revenue amounted to SEK 34.4 million (SEK 34.6 million).
The lower revenue is primarily due to installation timing, where no new
installations were shipped during the first half of 2016. In comparison, to two
Mini-System 3000 installations were shipped during the same period last year.
Equipment revenue amounted to SEK 0.8 million (SEK 2.3 million). Revenue from
series production increased by 3% to SEK 32.7 million (SEK 31.7 million), due to
higher series production and the increased shipment of 82,900 (75,100) Sampling
Cups. Engineering Service amounted to SEK 0.9 million (SEK 0.5 million)
following support provided to various customers globally.
Results
The business activities of SinterCast are best reflected by the Operating
Result. This is because the "Result for the period after tax" and the "Earnings
per Share" are influenced by the financial income and costs and by the
revaluation of tax assets.
Results Summary April-June January-June
(Amounts in SEK million if not otherwise stated) 2016 2015 2016 2015
-------------------------------------------------------------------------
Operating Result 5.8 2.9 10.4 8.8
Result for the period after tax 6.0 3.5 10.7 9.3
Earnings per Share (SEK) 0.8 0.5 1.5 1.3
-------------------------------------------------------------------------
The April-June 2016 operating result of SEK 5.8 million (SEK 2.9 million)
increased by SEK 2.9 million as a result of higher gross results of SEK 1.4
million primarily derived from higher revenue, combined with increased other
operating income (exchange gains) of SEK 0.6 million and decreased other
operating costs (exchange losses) of SEK 0.9 million. The result for the period
after tax amounted to SEK 6.0 million (SEK 3.5 million). The increase of SEK
2.5 million is primarily related to the increased operating result of SEK 2.9
million and the decreased financial net of SEK 0.4 million (primarily unrealised
revaluation losses derived from outstanding hedge contracts). Tax income
amounted to SEK 1.0 million (SEK 1.0 million), following revaluation of the
deferred tax asset.
The January-June 2016 Operating Result of SEK 10.4 million (SEK 8.8 million),
increased by SEK 1.6 million as a result of higher gross results of SEK 0.1
million primarily derived from lower revenue, combined with increased other
operating income (exchange gains) of SEK 0.6 million and decreased other
operating costs (exchange losses) of SEK 0.9 million.
The Result for the period after tax amounted to SEK 10.7 million (SEK 9.3
million), increased by SEK 1.4 million, primarily related to the increased
operating result of SEK 1.6 million and a SEK 0.2 million decrease in the
financial net (primarily unrealised revaluation losses derived from outstanding
hedge contracts).
Deferred Tax Asset
Tax for the April-June 2016 period amounted to SEK 1.0 million (SEK 1.0
million). The estimated future taxable profit and deferred tax asset calculation
is reassessed every quarter. As of 30 June 2016, SEK 142.3 million (SEK 137.8
million) of SinterCast's total carried-forward tax losses have been used as the
basis of the updated calculation, resulting in SEK 31.3 million (SEK 30.3
million) being capitalised as a deferred tax asset.
Cashflow, Liquidity and Investments
Cashflow Summary 2016 Year-to-Date January-June Cashflow Changes
(Amounts in SEK million if not otherwise stated) 2016 2015 2016 vs. 2015
-------------------------------------------------------------------------------
Cashflow from operations, before change in 10.5 8.4 2.1
working capital
Change in working capital -3.1 0.9 -4.0
-------------------------------------------------------------------------------
Cashflow from operations 7.4 9.3 -1.9
Cashflow from investing activities -1.0 -1.0 0.0
Cashflow from financing activities -24.8 -15.6 -9.2
-------------------------------------------------------------------------------
Exchange rate differences in cash and cash 0.0 0.0 0.0
equivalents
-------------------------------------------------------------------------------
Cashflow total -18.4 -7.3 -11.1
Liquidity 29.6 37.6
-------------------------------------------------------------------------------
The January-June 2016 cashflow from operations decreased by SEK 1.9 million
compared to the same period in 2015. This was primarily due to the net effect
of an increase of SEK 2.1 million in cashflow from operations before changes in
working capital, plus changes in working capital (SEK -4.0 million), derived
from changed cashflow from inventory (SEK 0.4 million), receivables (SEK -1.2
million) and operating liabilities (SEK -3.2 million).
The total cashflow decreased by SEK 11.1 million following the dividend of SEK
24.8 million (SEK 15.6 million). Total investments amounted to SEK 1.0 million,
primarily related to the activation of products under development (SEK 0.4
million), patent investments (SEK 0.2 million) and production equipment (SEK
0.4 million). The total cashflow amounted to SEK -18.4 million (SEK -7.3
million). Liquidity on 30 June 2016 was SEK 29.6 million (SEK 37.6 million).
SinterCast has no loans.
Risks and Uncertainty Factors
Uncertainty factors for SinterCast include the timing of OEM decisions for new
CGI engines and other components, the global economy for new vehicle sales, and
the individual sales success of vehicles equipped with SinterCast-CGI
components.
The economies have developed differently in Europe, Asia and the Americas over
the last several years. The European passenger vehicle, commercial vehicle, and
construction equipment markets have recovered, but uncertainty remains in the
market. In Asia, the dominant Chinese market is characterised by overcapacity
in the commercial vehicle and construction equipment sectors, which represent
the primary opportunity for CGI. This overcapacity, coupled with the current
economic uncertainty in China, influences product development cycles and
production volumes. In contrast, consumer confidence has increased in North
America and SinterCast has benefitted from increased vehicle sales. SinterCast's
geographical diversification helps to mitigate changing macroeconomic conditions
in the different regions.
For full risk and uncertainty factor information, see Note 26 on pages 46 and
47 in SinterCast's Annual Report 2015
Organisation
With successful high volume CGI production in foundries located in Europe, Asia
and the Americas, SinterCast has established a global organisation with
employees and offices in Sweden, the United Kingdom, the United States, China
and Korea. As of 30 June 2016, the Group had 20 (19) employees, four (four) of
whom are female. The company is well positioned to support global market
activities and to drive SinterCast's future growth.
Parent Company
SinterCast AB (publ) is the Parent Company of the SinterCast Group, with its
registered office located in Stockholm, Sweden. On 30 June 2016, the Parent
Company had 15 (14) employees. The majority of the operations are managed by the
Parent Company while local operations in the United Kingdom, United States,
Korea and China are managed by the local companies. The information given for
the Group in this report corresponds in all material respects to the Parent
Company. However, the result for the period may differ between the Group and the
Parent Company due to intercompany transactions between the Parent Company and
its subsidiaries.
Accounting Principles
The information provided on behalf of the Group in this interim report has been
prepared in accordance with Sweden's Annual Accounts Act and IAS 34 Interim
Financial Reporting. The reporting for the Parent Company has been prepared in
accordance with Sweden's Annual Accounts Act and RFR 2. The accounting policies
that have been applied for the Group and the Parent Company are in agreement
with the accounting policies used in the preparation of the company's latest
Annual Report. The implementation date of IFRS 15 has been changed from 1
January 2017 to 1 January 2018.
No material transactions have taken place between SinterCast and the Board or
the Management during the period.
Events after the Balance Sheet Date
There have been no significant events since the balance sheet date of 30 June
2016 that could materially change these financial statements.
Information
The Interim Report July-September 2016 will be published on 23 November 2016
The Interim Report October-December and Full Year Results 2016 will be published
on 22 February 2017
The Interim Report January-March 2017 will be published on 26 April 2017
The Interim Report April-June 2017 will be published on 23 August 2017
This report has not been reviewed by the company's Auditors.
The Board of Directors and the CEO certify that the half-yearly financial report
provides a true and fair overview of the operations, outlook, financial position
and results of the Company and the Group, and describes the material risks and
uncertainties that the Company and the companies in the Group face.
Stockholm 24 August 2016
Hans-Erik Andersson Aage Figenschou Robert Dover
Chairman of the Board Vice Chairman of the Board Member of the Board
Laurence Vine-Chatterton Carina Andersson Jason Singer
Member of the Board Member of the Board Member of the Board
Steve Dawson
President & CEO
Member of the Board
For further information please contact:
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office: +46 8 660 7750
Mobile: +44 771 002 6342
e-mail: steve.dawson(at)sintercast.com
website: www.sintercast.com
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, with 44
installations in 13 countries, is primarily 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 marine, rail, off-road and stationary
engine applications. SinterCast's series production components range from 2 kg
to 9 tonnes, all using the same proven process control technology. The
SinterCast share is quoted on the Small Cap segment of the Stockholm NASDAQ OMX
stock exchange (Stockholmsbörsen: SINT). For more information:
www.sintercast.com
END
Press Release PDF :
http://hugin.info/1205/R/2036546/758822.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SinterCast via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 24.08.2016 - 07:59 Uhr
Sprache: Deutsch
News-ID 490814
Anzahl Zeichen: 21417
contact information:
Town:
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Kategorie:
Business News
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