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SinterCast

Earnings Release Aug 25, 2010

3200_ir_2010-08-25_8f562091-4b1a-4fd0-9a4e-9f6c4f10a19f.pdf

Earnings Release

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Press Release: 25 August 2010

SinterCast Results April-June 2010

  • Revenue for period: SEK 8.6 million (SEK 5.3 million). Year-to-date: SEK 16.6 million (SEK 9.3 million)
  • Operating result: SEK 0.6 million (SEK -1.0 million). Year-to-date: SEK 1.3 million (SEK -3.7 million)
  • Earning/share: SEK 0.5 per share (SEK 0.4 per share). Year-to-date: SEK 0.7 per share (SEK -2.1 per share)
  • Cashflow: SEK 2.8 million (SEK -0.3 million). Year-to-date: SEK 0.7 million (SEK 0.1 million)
  • Mini-System 3000 successfully commissioned at First Automobile Works (FAW) in China
  • Land Rover introduces new 4.4 litre V8 diesel engine with SinterCast-CGI cylinder block
  • Ford 6.7 litre V8: CGI engine becomes most powerful diesel ever installed in a pick-up truck

Annualised Series production grew to 950,000 Engine Equivalents in the second quarter. Actual production during the first half of 2010 exceeds full year production for 2009.

Current Production and Outlook

Series production for the second quarter ran at an annualised rate of approximately 950,000 Engine Equivalents (47,500 tonnes), providing 5% growth relative to the first quarter of 2010 and a 125% increase compared to the same quarter in 2009. The increase is primarily due to the continued ramp-up of the Ford 6.7 litre V8 cylinder block in Brazil and increased production of exhaust components in China. However, production of some of the passenger vehicle V-diesel cylinder blocks and commercial vehicle engine components that began series production before the onset of the economic downturn also contributed to the increase during the quarter.

Jaguar Land Rover, the first automotive company to introduce a high volume engine based on a CGI cylinder block, unveiled its fourth CGI engine – a 4.4 litre V8 turbodiesel. Similar to the engine's 3.6 litre predecessor launched during 2006, the new 4.4 litre upgrade is based on a SinterCast-CGI cylinder block produced at the Tupy foundry in Brazil. Series production began during early 2010. The 4.4 litre upgrade delivers 230 kW (308 horsepower) and 700 Nm (516 lb-ft) of torque, representing 15% and 10% improvements respectively. Despite the larger displacement and significant power increases, the new engine provides a 10% reduction in CO2 emissions compared to the 3.6 litre predecessor. The Euro 5 engine is expected to be available in Land Rover vehicles during autumn 2010.

During the period, First Automobile Works (FAW), the largest vehicle manufacturer in China, commissioned a new Mini-System 3000 installation at the FAW Foundry Co., Ltd., R&D foundry in Changchun, China. SinterCast-CGI components were successfully produced to support product development in both the commercial vehicle and passenger vehicle sectors. Also during the period, the System 2000 that was initially installed at the Halberg foundry in Brebach, Germany in 1998 was transferred to the Halberg foundry located in Leipzig, Germany. The transfer marks the end of niche volume production of the Audi 4.2 litre V8 diesel cylinder block at Brebach and was effected by Halberg to support ongoing pre-production of a new commercial vehicle engine component which is scheduled to begin series production during the third quarter of 2010.

On 3 August 2010, Ford Motor Company announced a power upgrade for the 6.7 litre V8 diesel engine installed in Ford's Super Duty pick-up trucks. A software upgrade increases the performance to 400 horsepower and 1,085 Nm of torque, making the CGI engine the most powerful diesel ever installed in a pick-up truck. The increased power and torque allow drivers to reach higher gears earlier, and to remain in higher gears over a wider range of driving conditions, providing lower engine speed, improved fuel economy and reduced noise. The performance upgrade is expected to improve overall fuel economy by at least 2%.

Based on the current production programmes and the potential market recovery during SinterCast's five year planning horizon, the five year outlook is summarised as follows:

Approximate Annual Production Potential and Revenue
30 June 2010 31 March 2010
Activity KEQVS* MSEK/yr** KEQVS* MSEK/yr**
Current Series Production1 950 22 900 21
Potential Mature Volume2 1,300 30 1,200 28
Production Orders Secured3 400 9 400 9
Development Pipeline4 2,500 58 2,500 57
Near-term Market Opportunity5 4,200 97 4,100 94

Notes: 1. Current annualised production rate

    1. Annualised potential mature volume of Current Series Production (Item 1 above) when fully ramped-up 3. Annualised mature volume of programmes for which SinterCast's foundry customers have received
  • production orders, but have not yet started series production 4. Annualised mature volume of development programmes that SinterCast is currently supporting, but have not yet been awarded as series production orders
    1. Total Near-term Market Opportunity (sum of items 2, 3 and 4)
  • * KEQVS: Thousands of Engine Equivalents
  • ** Assumes SEK 23 per Engine Equivalent, depending on exchange rates

Financial Summary

Revenue

The revenue for the SinterCast Group relates primarily to income from equipment (sales and leases), series production and engineering service.

Revenue Breakdown April-June January-June
2010 2009 2010 2009
Number of Sampling Cups shipped 25,400 9,300 48,650 20,600
Equipment 1 0.4 1.7 1.3 2.0
Series Production 2 7.4 3.1 14.4 6.4
Engineering Service 3 0.6 0.4 0.7 0.8
Other 0.2 0.1 0.2 0.1
Total 8.6 5.3 16.6 9.3

(Amounts in SEK million if not otherwise stated)

Notes: 1. Includes revenue from system sales and leases and sales of spare parts

  1. Includes revenue from production fees, consumables and software licence fees

  2. Includes revenue from technical support, on-site trials and sales of test pieces

The April-June 2010 revenue amounted to SEK 8.6 million (SEK 5.3 million). The revenue increase of 62% is a result of the significant increases in series production and Sampling Cup shipments. The revenue from series production increased by 140% to SEK 7.4 million (SEK 3.1 million), due to the record production at an annualised rate of approximately 950,000 (400,000) Engine Equivalents and the shipment of 25,400 (9,300) Sampling Cups.

The January-June 2010 revenue amounted to SEK 16.6 million (SEK 9.3 million). The revenue increase of 78% is as a result of the significant increases in series production and Sampling Cup shipments and the invoicing of the Mini-System 3000 to First Automobile Works in China, which was installed during the period. The revenue from series production increased by 125% to SEK 14.4 million (SEK 6.4 million), due to the record production at an annualised rate of approximately 900,000 (400,000) Engine Equivalents and the shipment of 48,650 (20,600) Sampling Cups. Actual production during the first half of 2010 was approximately 450,000 Engine Equivalents, compared to actual production of approximately 400,000 Engine Equivalents during full-year 2009.

Results

Results Summary April-June
January-June
2010
2009
2010
2009
Operating Result 0.6 -1.0 1.3 -3.7
Result for the period 3.4 2.0 4.4 -11.7
Result after tax per share (SEK)* 0.5 0.4 0.7 -2.1
(Amounts in SEK million if not otherwise stated)

*Based on 6,478,383 shares

The April-June 2010 operating result of SEK 0.6 million (SEK -1.0) million was primarily affected by higher gross result of SEK 2.4 million compared to the same period 2009. The result after tax for the April-June 2010 period amounted to SEK 3.4 million (SEK 2.0 million), primarily related to the revaluation of the deferred tax asset, as described in the section entitled "Deferred Tax Asset".

The January-June 2010 operating result of SEK 1.3 million (SEK -3.7) million was primarily affected by higher gross result of SEK 5.8 million compared to the same period 2009. The result after tax for the January-June 2010 period amounted to SEK 4.4 million (SEK -11.7 million), primarily related to the revaluation of the deferred tax asset, as described in the section entitled "Deferred Tax Asset".

Deferred Tax Asset

SinterCast calculates its estimated future taxable profit from secured production orders on a quarterly basis, in order to determine the valuation of its deferred tax asset.

Deferred Tax Asset April-June January-June
2010 2009 2010 2009
Estimated future taxable profit 92.2 39.9 92.2 39.9
Change in carry-forward tax loss taken into consideration 11.9 9.6 11.9 -30.2
Deferred tax asset 24.3 10.5 24.3 10.5
Tax result 3.1 2.5 3.1 -8.0

(Amounts in SEK million if not otherwise stated), (FY: Full Year)

SinterCast has reassessed the estimated future taxable profit and deferred tax asset calculation from secured orders to reflect the current expectation of programme longevity and the typical lifecycle for engine programmes in the automotive industry. As of 30 June 2010, SEK 92.2 million (SEK 80.3 million) of SinterCast's total carried-forward tax losses have been used as the basis of the updated calculation, resulting in SEK 24.3 million (SEK 21.2 million) being capitalised as a deferred tax asset.

Employee Stock Option Programme

As of 30 June 2010, the cost of the employee stock option programme 2009-2013 was calculated at a total amount of SEK 3.3 million (SEK 3.2 million), based on a closing share price of SEK 49.4 (SEK 30.4). Thus far during 2010, SEK 0.7 million (SEK 0.5 million) has been accounted for as costs related to the option programme.

Cashflow, Liquidity and Investments

The April-June 2010 cashflow result was SEK 2.8 million (SEK -0.3 million), providing a Group liquidity of SEK 25.5 million (SEK 9.1 million) on 30 June 2010. It is noted that the cashflow result from operating activities was positive during the period, however, the time delay between invoicing and payment has resulted in a decrease in working capital required during the period. Investments during the period amounted to SEK 0.1 million (SEK 0.7 million), relating to the activation of the Pressurised Pouring Furnace development project.

Cashflow Summary April-June January-June
2010 2009 2010 2009
Cashflow from operating activities 1.1 -1.2 2.4 -2.8
Cashflow from working capital 1.8 1.6 -1.5 0.6
Cashflow from investment activities -0.1 -0.7 -0.2 -0.7
Cashflow from financing activities - - - 3.0
Cashflow total 2.8 -0.3 0.7 0.1
Liquidity 25.5 9.1 25.5 9.1
Investments 0.1 0.7 0.2 0.7

(Amounts in SEK million if not otherwise stated)

Current liquidity is SEK 25.5 million, with the prospect of an additional SEK 11.6 million being raised during September 2010 from the warrants related to the rights issue conducted during September 2009 and an additional SEK 1.7 million from the potential exercise of the first 15% of the employee stock options during November-December 2010.

Risks and Uncertainty Factors

Market Development

Despite the positive increase in series production since mid-2009, the main uncertainty factor for SinterCast continues to be the overall timing of the CGI market ramp-up, which primarily depends on the global economy for new vehicle sales and on the individual sales success of the vehicles equipped with SinterCast-CGI components. The economic conditions facing the global foundry and automotive industries have caused automotive OEMs to reduce production and, in some cases, delay production launches. In parallel, foundries have delayed plans for new investment in CGI production capacity. The overall decline in the automotive market has resulted in a reduction of SinterCast's near-term market opportunity calculation from a peak of 5.7 million Engine Equivalents on 30 June 2008 to the current value of 4.2 million Engine Equivalents. Although the automotive sector has begun to recover, volumes are still significantly below pre-downturn levels. While SinterCast continues to support new product development activities, and anticipates new production launches and new opportunities for installation revenue, the Board believes that it is still not possible to determine the ultimate effect of the global economic recession or the timing and rate of the overall market recovery.

Liquidity

SinterCast regularly monitors its cash position with reference to market forecasts and internal expense budgets. In consideration of current expense and revenue forecasts, the Board judges that the Company's financial position is secure. The Company will continue its prudent approach toward expenses and new recruitment as the overall market recovery evolves.

Market Penetration and Competition

SinterCast has played a leading role in the development and application of CGI since the early 1990's. SinterCast enjoys global brand recognition and respect as the CGI technology leader and is welcomed by the industry as a reliable and trustworthy partner. However, virtually every company encounters competition, and SinterCast is no exception. As the CGI market has developed, some foundry supply companies have proposed alternative CGI technologies. To SinterCast's knowledge, these have included Hereaus-Electronite, OxyCast, OCC and NovaCast. It is also possible that some foundries may opt to produce CGI using in-house control and discipline, but this is generally judged to become less likely as product complexity and production volumes increase, and as specification requirements become more rigidly enforced by the end-users. SinterCast judges that its technology and engineering know-how provides the most reliable and cost-effective solution for the production of high quality CGI. Based on its proven technology, production experience and engineering service, SinterCast will continue to support new CGI development activities to further increase its share of the world CGI production capacity. With respect to the development of alternative automotive technologies such as biofuels, hybrids and fuel cells, SinterCast does not expect these to have a significant effect on the Company's competitive position for the foreseeable future.

Personnel

As of 30 June 2010, the Group had 13 (13) employees, two (two) of which were female. The core technical staff has the necessary skills and resources to support ongoing customer activities and to support the current intensified market development. Further recruitment will be phased with the development of field activities, particularly the need to support new installations.

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. As of 1 January 2009, several amendments to existing standards, new interpretations and one new standard (IFRS 8) have come into effect. In accordance with IAS 1, SinterCast has opted to present the Group's total earnings divided into two statements: a separate income statement and a statement of comprehensive income. Furthermore, the consolidated statement of changes in shareholders' equity only includes transactions with the Group's owners. As of 1 April 2009, development costs that can be directly attributed to the design and testing of identifiable and unique new products controlled by the Group are recognised as intangible assets when the criteria of IAS38 are met. Beginning with the 3Q09 report, SinterCast has reassessed the estimated future taxable profit and deferred tax asset calculation to reflect the typical lifecycle of an engine programme in the automotive industry. In compliance with IFRS 8, beginning with the 4Q09 report, the Geographical Market presentation summary has been removed from the financial statements, to better correspond with the internal reporting within the Group. The reporting for the Parent Company has been prepared in accordance with Sweden's Annual Accounts Act. The accounting policies that have been applied for the Group and for the Parent Company are in agreement with the accounting policies used in the preparation of the Company's latest annual report.

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 2010 that could materially change these financial statements.

Parent Company

SinterCast AB (publ) is the Parent Company of the SinterCast Group, with registered office located in Stockholm, Sweden. The Parent Company has 10 (12) employees. The majority of the operations are conducted by the Parent Company, including responsibility for the representative office in China and sales representatives in Australia, India, Japan and Korea. Operations in the UK and the USA are managed by the local companies. The information given for the Group in this report corresponds in all material respects to the Parent Company.

Information

The Interim Report July-September 2010 will be published on 3 November 2010 The Interim Report October- December and Full Year Results 2010 will be published on 18 February 2011 The Interim Report January-March 2011 will be published on 4 May 2011 The Interim Report April-June 2011 will be published on 24 August 2011

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, 25 August 2010

Ulla-Britt Fräjdin-Hellqvist
Chairman of the Board

Aage Figenschou Vice Chairman of the Board Andrea Fessler Member of the Board

Robert Dover 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) Tel: +46 8 660 7750 Mobile: +44 771 002 6342 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 process control technology. The endusers of SinterCast-CGI components include Aston Martin, Audi, Caterpillar, Chrysler, DAF Trucks, Ford, Ford-Otosan, General Electric Transportation Systems, General Motors, Hyundai, Navistar, Jaguar, Kia, Land Rover, MAN, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce Power Engineering, Toyota, Volkswagen, Volvo and Waukesha Engine. The SinterCast share is quoted on the Small Cap segment of the Nordic Exchange, Stockholm (Stockholmsbörsen: SINT).

April-June January-June January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
Revenue 8.6 5.3 16.6 9.3 20.0 24.8
Cost of goods sold -2.8 -1.9 -5.1 -3.6 -7.0 -9.4
Gross result 5.8 3.4 11.5 5.7 13.0 15.4
Cost of sales and marketing -2.8 -2.5 -5.3 -5.1 -10.1 -11.0
Cost of administration -1.6 -1.5 -2.9 -2.9 -5.2 -6.5
Cost of research & development -1.0 -0.5 -2.0 -1.5 -3.9 -3.9
Other operating income 0.0 0.1 0.0 0.1 0.0 0.0
Other operating costs 0.2 0.0 0.0 0.0 -0.1 0.3
Operating result 0.6 -1.0 1.3 -3.7 -6.3 -5.7
Financial income 0.0 -0.1 0.4 0.2 1.8 0.7
Financial costs -0.3 0.6 -0.4 -0.2 -0.9 -0.4
Income Tax 3.1 2.5 3.1 -8.0 2.7 18.5
Result for the period 3.4 2.0 4.4 -11.7 -2.7 13.1
Result attributable to:
Equity holder of the parent company 3.4 2.0 4.4 -11.7 -2.7 13.1
Non-controlling interests - - - - - -
Earnings per share, SEK 0.5 0.4 0.7 -2.1 -0.5 2.4
Earning per share, diluted, SEK 0.5 0.4 0.7 -2.1 -0.5 2.4
Number of shares at the close of the period, thousands 6 478.4 5 552.9 6 478.4 5 552.9 6 478.4 5 552.9
Average number of shares, thousands 6 478.4 5 552.9 6 478.4 5 552.9 5 815.1 5 552.9
Average number of shares adjusted for outstanding warrants 6 727.9 5 552.9 6 727.9 5 552.9 5 815.1 5 552.9

Income Statement - SinterCast Group

Statement of Comprehensive Income - SinterCast Group

April-June January-June January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
Result for the period 3.4 2.0 4.4 -11.7 -2.7 13.1
Other comprehensive income
Translation differences, foreign subsidiaries -0.1 -0.1 0.0 0.0 0.0 0.1
Other comprehensive income, net of tax -0.1 -0.1 0.0 0.0 0.0 0.1
Total comprehensive income 3.3 1.9 4.4 -11.7 -2.7 13.2
Total comprehensive income attributable to:
Equity holder of the parent company 3.3 1.9 4.4 -11.7 -2.7 13.2
Non-controlling interests - - - - - -

Cashflow Statement - SinterCast Group

April-June January-June
January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
Operating activities
Operating result 0.6 -1.0 1.3 -3.7 -6.3 -5.7
Adjustments for items not included in the cash flow
Depreciation 0.2 0.2 0.4 0.4 1.5 1.2
Other 0.2 -0.3 0.5 0.5 1.4 0.6
Exchange rate differences 0.1 0.0 -0.1 0.0 0.4 0.3
Received interest 0.0 0.0 0.4 0.1 0.0 0.7
Paid interest 0.0 -0.1 -0.1 -0.1 -0.2 -0.4
Total cashflow from operating activities
before change in working capital 1.1 -1.2 2.4 -2.8 -3.2 -3.3
Change in working capital*
Stock -0.4 0.7 -0.2 1.1 1.2 -1.8
Operating receivables 1.3 0.4 -2.5 0.7 0.6 -0.5
Operating liabilities 0.9 0.5 1.2 -1.2 -3.5 -1.4
Total change in working capital 1.8 1.6 -1.5 0.6 -1.7 -3.7
Cashflow from operations 2.9 0.4 0.9 -2.2 -4.9 -7.0
Investing activities
Acquisition of intangible assets -0.1 -0.7 -0.2 -0.7 -0.5 -0.2
Acquisition of tangible assets 0.0 0.0 0.0 0.0 -0.1 -0.1
Increase/decrease in long-term receivables/payables 0.0 0.0 0.0 0.0 0.0 0.0
Cashflow from investing activities -0.1 -0.7 -0.2 -0.7 -0.6 -0.3
Financing activities
Rights Issue** - - - - 18.3 -
Bank Loan - 0.0 - 3.0 3.0 -
Cashflow from financing activities 0.0 0.0 0.0 3.0 21.3 -
Change in cash and cash equivalents*** 2.8 -0.3 0.7 0.1 15.8 -7.3
Cash - opening balance 22.7 9.4 24.8 9.0 9.0 16.3
Cash - closing balance 25.5 9.1 25.5 9.1 24.8 9.0

* Classification between individual items has been changed compared to Books Closing Report 2009.

** The Rights Issue amounted to SEK 23.1 million before transaction costs

*** The cash and cash equivalents comprises short-term deposits and cash at bank and in hand.

30 June 30 June 31 March 31 March 31 Dec 31 Dec
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
ASSETS
Intangible assets 3.1 3.8 3.2 3.3 3.3 3.5
Tangible assets 0.1 0.1 0.1 0.1 0.1 0.1
Financial assets 24.5 10.7 21.4 8.2 21.4 18.7
Total fixed assets 27.7 14.6 24.7 11.6 24.8 22.3
Stock 4.0 3.9 3.6 4.6 3.8 5.0
Short-term receivables 8.2 3.7 9.6 4.3 5.8 4.4
Short term deposits and cash at bank and in hand 25.5 9.1 22.7 9.4 24.8 9.0
Total current assets 37.7 16.7 35.9 18.3 34.4 18.4
Total Assets 65.4 31.3 60.6 29.9 59.2 40.7
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity* 55.5 22.9 51.8 20.8 50.5 34.1
Long term liabilities 0.0 0.0 0.0 0.0 0.0 0.0
Current liabilities 9.9 8.4 8.8 9.1 8.7 6.6
Total shareholders' equity and liabilities 65.4 31.3 60.6 29.9 59.2 40.7
Adjusted equity per share 8.6 4.1 8.0 3.7 7.8 6.1
* STATEMENT OF CHANGES IN EQUITY Share Additional Accumulated Total
Attributable of the equity holder of the parant company Capital Paid in
Capital
Result Equity
Opening balance 1 January 2009 5.55 9.53 19.07 34.15
Employee share option programme - - 0.47 0.47
Total comprehensive income - - -11.72 -11.72
Closing Balance 30 June 2009 5.55 9.53 7.82 22.90
Opening balance 1 January 2010 6.48 26.90 17.10 50.48
Employee share option programme 0.64 0.64
Total comprehensive income 4.42 4.42
Closing Balance 30 June 2010 6.48 26.90 22.16 55.54

Key Ratio and Share Data - SinterCast Group

April-June January-June January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008 2007
Key Ratio
Revenue, SEK millions 8.6 5.3 16.6 9.3 20.0 24.8 22.8
Net result, SEK millions 3.4 2.0 4.4 -11.7 -2.7 13.1 -4.5
Operating margin % 7.0 -18.9 7.8 -39.8 -31.5 -23.0 -22.4
Solidity, % 84.9 73.2 84.9 69.6 85.3 83.8 71.2
Adjusted shareholders' equity, SEK millions 55.5 22.9 55.5 20.8 50.5 34.1 20.0
Capital employed, SEK millions 58.5 22.9 58.5 23.8 53.5 34.1 20.0
Total assets, SEK millions 65.4 31.3 65.4 29.9 59.2 40.7 28.1
Return on shareholders' equity, % 6.3 9.5 8.3 -54.5 -6.4 48.4 -20.7
Return on capital employed, % 6.4 10.5 8.7 -53.2 -5.6 50.0 -19.2
Return on total assets, % 5.9 12.9 7.8 -62.0 -4.1 66.5 -29.7
Debt-to-equity ratio 0.1 - 0.1 - 0.1 - -
Employees
Number of employees at the end of the period 13 13 13 13 13 15 14
Data per Share
Earnings per share, SEK 0.5 0.4 0.7 -2.1 -0.5 2.4 -0.8
Dividends per share, SEK - - - - - - -
Cashflow per share, SEK 0.4 -0.1 0.1 0.0 2.7 -1.3 0.1
Share price at the end of the period, SEK 49.4 30.4 49.4 30.4 50.5 32.5 140.0

Operating results as percentage of revenue Net result as a percentage of average adjusted Average number of shares shareholders' equity Weighted average of the number of shares outstanding for the period Return on capital employed Average number of shares adjusted for outstanding warrants Net result after financial items plus financial Weighted average of the number of shares and warrants outstanding for the period expenses as a percentage of average capital employed Earnings per share Return on total assets Net result divided by the average number of shares Net result after financial items plus financial expenses Earnings per share adjusted for outstanding warrants as a percentage of total average assets No outstanding warrants Debt-to-equity ratio Adjusted equity per share Interest bearing liabilities divided by adjusted Adjusted shareholders' equity divided by the average number of shares shareholders' equity Adjusted equity per share adjusted for outstanding warrants Share price at the end of the period No outstanding warrants Latest paid price for the SinterCast share at Solidity the Swedish stock exchange, Stockholmsbörsen Adjusted shareholders' equity expressed as percentage Value presented as "0.0" of total assets end of period Amount below SEK 50,000 Adjusted shareholders' equity Value presented as "-" Shareholders' equity plus of untaxed reserves No amount applicable Capital employed Total assets less non-interest bearing liabilities

Operating margin % Return on shareholders' equity

April-June January-June January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
Revenue 8.3 4.5 16.1 8.0 19.3 22.3
Cost of goods sold -2.8 -1.2 -5.3 -3.4 -7.8 -9.3
Gross result 5.5 3.3 10.8 4.6 11.5 13.0
Cost of sales and marketing -3.8 -1.2 -5.0 -2.4 -8.9 -11.1
Cost of administration -1.9 -1.2 -2.9 -2.3 -5.4 -6.6
Cost of research & development -1.0 -0.5 -1.9 -1.4 -3.8 -3.9
Other operating income 0.0 0.0 0.0 0.0 0.0 0.2
Other operating costs -0.3 -0.5 -0.3 -0.5 -0.1 0.0
Operating result -1.5 -0.1 0.7 -2.0 -6.7 -8.4
Financial income 0.0 -0.2 0.4 0.2 1.8 0.6
Financial costs -0.4 0.6 -0.4 0.0 -0.9 -0.4
Income Tax 3.1 2.5 3.1 -8.0 2.7 18.5
Result for the period 1.2 2.8 3.8 -9.8 -3.1 10.3
Result attributable to:
Equity holder of the parent company 1.2 2.8 3.8 -9.8 -3.1 10.3
Non-controlling interests - - - - - -
Earnings per share, SEK 0.2 0.5 0.6 -1.8 -0.5 1.9
Earning per share, diluted, SEK 0.2 0.5 0.6 -1.8 -0.5 1.9
Number of shares at the close of the period, thousands 6 478.4 5 552.9 6 478.4 5 552.9 6 478.4 5 552.9
Average number of shares, thousands 6 478.4 5 552.9 6 478.4 5 552.9 5 815.1 5 552.9
Average number of shares adjusted for outstanding warrants 6 727.9 5 552.9 6 727.9 5 552.9 5 815.1 5 552.9

Income Statement - SinterCast AB

Statement of Comprehensive Income - SinterCast AB

April-June January-June January-December
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
Result for the period 1.2 2.8 3.8 -9.8 -3.1 10.3
Total comprehensive income 1.2 2.8 3.8 -9.8 -3.1 10.3
Total comprehensive income attributable to:
Equity holder of the parent company 1.2 2.8 3.8 -9.8 -3.1 10.3
Non-controlling interests - - - - - -

Balance Sheet - SinterCast AB

30 June 30 June 31 March 31 March 31 Dec 31 Dec
AMOUNTS IN SEK MILLION 2010 2009 2010 2009 2009 2008
ASSETS
Intangible assets 3.1 3.8 3.2 3.3 3.3 3.5
Tangible assets 0.1 0.1 0.1 0.1 0.1 0.1
Financial assets 26.8 12.5 23.5 9.8 23.4 20.1
Total fixed assets 30.0 16.4 26.8 13.2 26.8 23.7
Stock 3.2 3.0 2.8 4.6 3.0 5.0
Short-term receivables 10.6 5.9 10.0 4.2 5.3 3.8
Short term deposits and cash at bank and in hand 24.9 8.5 22.4 9.1 24.4 8.2
Total current assets 38.7 17.4 35.2 17.9 32.7 17.0
Total Assets 68.7 33.8 62.0 31.1 59.5 40.7
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity* 46.7 17.1 45.2 13.7 42.3 26.4
Long term liabilities 0.1 0.1 0.1 0.1 0.1 0.1
Current liabilities 21.9 16.6 16.7 17.3 17.1 14.2
Total shareholders' equity and liabilities 68.7 33.8 62.0 31.1 59.5 40.7
Adjusted equity per share 7.0 2.5 7.0 2.5 6.5 4.8
* STATEMENT OF CHANGES IN EQUITY Share Additional Accumulated Total
Attributable of the equity holder of the parant company Capital Paid in
Capital
Result Equity
Opening balance 1 January 2009 5.55 9.53 11.28 26.36
Employee share option programme - - 0.47 0.47
Total comprehensive income - - -9.75 -9.75
Closing Balance 30 June 2009 5.55 9.53 2.00 17.08
Opening balance 1 January 2010 6.48 9.53 26.32 42.33
Employee share option programme - - 0.64 0.64
Total comprehensive income - - 3.75 3.75
Closing Balance 30 June 2010 6.48 9.53 30.71 46.72

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