Earnings Release • Dec 8, 2011
Earnings Release
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[Stockholm, 8 December 2011] – Series production continues to grow, with annualised production currently running at a record pace of more than 1.5 million Engine Equivalents (75,000 tonnes/year). The 2011 series production surpassed full year 2010 results during October and is poised to close 2011 with 50% year-on-year growth. Likewise, Sampling Cup shipments surpassed 2010 full year results during September and, following record shipment of 22,400 Sampling Cups during October, the Sampling Cup volume is poised to increase from 102,650 units in 2010 to approximately 150,000 units in 2011.
During November 2010, SinterCast announced that 2011 provided the potential to be the strongest year for new installations in more than a decade. This was reconfirmed at the 2011 AGM as a target for five installations. Thus far during 2011, SinterCast has commissioned six new installations, surpassing the target announced more than one year ago. Together, the increased series production and installation activities have resulted in a significant increase in revenue, with year-to-date revenue in October 2011 more than 40% higher than the same period in 2010.
SinterCast and its foundry customers are actively supporting product development for new CGI applications beyond the current core sectors for passenger vehicle V-diesel cylinder blocks and commercial vehicle cylinder blocks and heads. This ongoing product development provides opportunities for high volume series production in the near term, and an important broadening of SinterCast's series production base.
Although economic uncertainty continues to dampen financial markets, the outlook for SinterCast in 2012 remains positive. Series production shows a clear growth trend and, while new car sales forecasts in Europe may indicate a decline, this is primarily influenced by anticipated reductions in small vehicle sales in southern Europe. SinterCast's current production is linked to large and luxury vehicles, and this sector does not yet show any decline. Globally, most analysts forecast foundry production to increase by up to 5% per year until 2015, providing a positive business environment for SinterCast's series production and new installation opportunities.
"Across the board, 2011 has provided record results and series production growth of approximately 50%. Our track record for series production growth is strong and consistent, with every single quarter since 2008 showing positive growth" said Dr. Steve Dawson, President & CEO of SinterCast. "This growth, combined with positive feedback from our customers, provides a deep source of motivation as we look forward to 2012."
For more information, please contact:
Dr. Steve Dawson President & CEO SinterCast AB (publ) e-mail: [email protected]
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 weight, noise and emissions. SinterCast produces a variety of CGI components ranging from 2 kg to 17 tonnes, all using the same proven process control technology. The end-users of SinterCast-CGI components include Aston Martin, Audi, Caterpillar, Chrysler, DAF Trucks, Ford, Ford-Otosan, General Electric Transportation Systems, General Motors, Hyundai, Jaguar, Jeep, Kia, Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce Power Engineering, Scania, Toyota, Volkswagen, Volvo, VM Motori, and Waukesha Engine. The SinterCast share is quoted on the Small Cap segment of the NASDAQ OMX stock exchange (Stockholmsbörsen: SINT). For more information: www.sintercast.com
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