Third Quarter 2021
· Revenue for Period: SEK 25.3 million (SEK 19.2 million)
· Operating Result: SEK 8.0 million (SEK 3.6 million)
· Earnings per Share: SEK 1.0 per share (SEK 0.5 per share)
· Cashflow from Operations: SEK 13.2 million (SEK -2.7 million)
· September marks third highest monthly production in SinterCast history
· Mini-System 4000 installed for product development at industrial power foundry in Asia
· Positive installation outlook for fourth quarter
· Revenue for Period: SEK 77.8 million (SEK 62.5 million)
· Operating Result: SEK 23.7 million (SEK 12.3 million)
· Earnings per Share: SEK 3.6 per share (SEK 1.9 per share)
· Cashflow from Operations: SEK 28.7 million (SEK 15.8 million)
· Installed Base: 55 (57) installations in 14 Countries(25 (26) fully automated systems, 24 (26) mini-systems and six (five) tracking systems)
· Dividend Payment: second instalment of SEK 2.00 per share to be paid on 24 November 2021, with record date of 19 November 2021
Annualised series production remained at 3.2 million Engine Equivalents in the third quarter, reinforcing the recovery of the past year. Together, 2Q and 3Q 2021 tied as the third highest quarters in SinterCast series production history.
Strong series production; positive growth outlook
Series production remained strong throughout the third quarter, with many customers bypassing the traditional summer shutdown period to meet the market demand, providing the second-highest July on record. The quarter closed with 3.6 million Engine Equivalents in September, representing the third highest month in SinterCast history, only surpassed by September and October 2019, at 3.9 million and 3.7 million Engine Equivalents respectively. Ultimately, series production for the third quarter finished at 3.2 million Engine Equivalents, providing 14% year-on-year growth and 29% year-to-date growth. In perspective, the second and third quarters both finished at 3.2 million Engine Equivalents, jointly becoming the third highest quarters in SinterCast history.
Revenue for the quarter increased by 32%, with approximately half of the increase coming from higher series production and half coming from increased engineering service and equipment sales as international travel started to resume. Year-to-date revenue benefitted from a 29% increase in series production and a 67% increase in Sampling Cup shipments, but was offset by lower installation revenue and unfavourable exchange rates. Ultimately, the year-to-date revenue finished up by 25%.
The ongoing semiconductor supply challenges continued to hinder vehicle production in some of our key high-volume programmes. Although some improvements and stabilisation have been realised, it is reasonable to expect that the supply challenges will remain well into 2022, and perhaps beyond. In our largest end-user market in North America, semiconductor shortages have led to all-time low vehicle inventory levels and strong demand for new vehicles. Ultimately, the pent up demand and the need to rebuild vehicle inventories provides the basis for a strong and sustained production outlook that is expected to drive demand into 2023. The near-term production outlook is also buoyed by the pending start of commercial vehicle engine production at FAW in China and at Scania in Sweden, with strong growth expected in 2022 and 2023, providing the ambition to reach the four million Engine Equivalent milestone during 2022.
Busy fourth quarter for installations
Installation revenue in the third quarter amounted to SEK 2.5 million, primarily due to the installation of a Mini-System 4000 for product development at an undisclosed industrial power foundry in Asia. The formal completion of the System 4000 Plus installations at Scania and FAW were also realised during the third quarter, contributing to the revenue. The outlook for the fourth quarter is particularly busy, with planned installations of a System 4000 at the Impro foundry in Mexico and a Ladle Tracker at the Hyundai foundry in Korea. These activities provide the opportunity for fourth quarter revenue to challenge the first three quarters and to increase the installation revenue to a historical full-year average of approximately SEK 8 million before year-end.
Installation discussions are ongoing for CGI process control systems, capacity upgrades, and Tracking Technologies installations. 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.
For further information please contact:
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office: +46 150 794 40
Mobile: +44 771 002 6342
This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 3 November 2021.
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 the SinterCast Ladle Tracker® and SinterCast Cast Tracker® technologies, to improve process control, productivity and traceability in a variety of applications. With 55 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
This information was distributed by MFN https://www.mfn.se/