The July-September 2015 revenue amounted to SEK 20.6 million (SEK 13.4 million). Revenue from series production increased by 29% to SEK 15.3 million (SEK 11.9 million), due to annualised production of approximately 2.0 million (1.8 million) Engine Equivalents, the increased shipment of 36,900 (28,700) Sampling Cups and favourable exchange rates. Equipment revenue amounted to SEK 5.0 million (SEK 1.1 million) due to the Mini-System 3000 installations at Dongfeng in China and Teksid in Portugal, and the System 3000 Plus installation at Asimco in China. Service amounted to SEK 0.3 million (SEK 0.3 million) following support provided to various customers globally and the sale of test pieces.
The January-September 2015 revenue amounted to SEK 55.2 million (SEK 38.9 million), surpassing the full year revenue record of SEK 54.5 million in 2014. The revenue from Series Production increased by 39% to SEK 47.0 million (SEK 33.9 million) due to a 19% increase in year-to-date series production, an 18% increase in Sampling Cup shipments and favourable exchange rates. Equipment revenue amounted to SEK 7.3 million (SEK 3.8 million), derived from the third quarter installations and the earlier Mini-System 3000 installations at Doosan Infracore in Korea and at an undisclosed engine component foundry in Japan. Engineering Service amounted to SEK 0.8 million (SEK 1.1 million) following support provided to various customers globally and the sale of test pieces. The revenue from the leased installations is accrued over the lease period.
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.
The July-September 2015 operating result of SEK 7.1 million (SEK 3.1 million) increased by SEK 4.0 million as a result of higher gross results of SEK 4.9 million primarily derived from higher revenue, combined with higher operational expenses of SEK 0.9 million.
The result for the period after tax amounted to SEK 6.9 million (SEK 3.5 million). The increase of SEK 3.4 million is primarily related to the increased operating result of SEK 4.0 million, the decreased financial net of SEK 0.5 million (primarily unrealised revaluation losses derived from outstanding hedge contracts) and increased tax expense of SEK 0.1 million.
The January-September 2015 Operating Result of SEK 15.9 million (SEK 6.7 million), increased as a result of higher gross results of SEK 13.2 million primarily derived from higher revenue, combined with higher operational expenses of SEK 2.7 million and decreased operating income (exchange losses) of SEK 1.3 million.
The Result for the period after tax amounted to SEK 16.2 million (SEK 8.6 million), primarily related to the increased operating result of SEK 9.2 million and a SEK 1.6 million decrease in the financial net (primarily exchange losses).
Deferred Tax Asset
Tax for the period January-September 2015 amounted to SEK 0.9 million (SEK 0.9 million). The estimated future taxable profit and deferred tax asset calculation is reassessed every quarter. As of 30 September 2015, SEK 137.8 million (SEK 133.3 million) of SinterCast's total carried-forward tax losses have been used as the basis of the updated calculation, resulting in SEK 30.3 million (SEK 29.3 million) being capitalised as a deferred tax asset.
Cashflow, Liquidity and Investments
The January-September 2015 cashflow from operations increased by SEK 12.3 million compared to the same period in 2014, primarily due to an increase in cashflow from operations before changes in working capital (SEK 9.4 million) and from changes in working capital (SEK 2.9 million), derived from changed cashflow from inventory (SEK 0.9 million), receivables (SEK -0.3 million) and operating liabilities (SEK 2.3 million).
The total cashflow increased by SEK 4.6 million after increased investments by SEK 0.6 million, primarily related to increased activation of products under development (SEK 0.9 million) and increased patent investments (SEK 0.4 million). Following the dividend of SEK 15.6 million (SEK 8.5 million), the total cashflow amounted to SEK -1.2 million (SEK -5.8 million). Liquidity on 30 September 2015 was SEK 43.7 million (SEK 42.0 million).
Risks and Uncertainty Factors
The main uncertainty factor for SinterCast continues to be the timing of the CGI market ramp-up. This primarily depends on 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 begun to show some recovery, but this growth is from a relatively low level and 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. However, as manufacturing continues to grow in developing countries, many of the future installation opportunities will be in price sensitive markets and this can present a challenge for the SinterCast fee structure and Business Model.
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 September 2015, the Group had 19 (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.
SinterCast AB (publ) is the Parent Company of the SinterCast Group, with its registered office located in Stockholm, Sweden. On 30 September 2015, the Parent Company had 14 (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.
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.
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 September 2015 that could materially change these financial statements. The following press releases have been issued:
The Nomination Committee, elected by the Annual General Meeting 2015, consists of Karl-Arne Henriksson, Chairman, Hans-Erik Andersson, Chairman of the Board of Directors, Ulla-Britt Fräjdin-Hellqvist and Andrea Fessler. Shareholders wishing to provide input or proposals should provide written submissions to the Nomination Committee (e-mail: email@example.com) before 25 March 2016.
Annual General Meeting
The Annual General Meeting 2016 of SinterCast AB (publ) will be held on Thursday 19 May 2016.
Shareholders wishing to have a matter considered at the Annual General Meeting should provide written submissions to firstname.lastname@example.org or to the company: SinterCast AB (publ), P.O. Box 10203, SE-100 55 Stockholm, 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.
The Interim Report October-December and Full Year Results 2015 will be published on 17 February 2016
This report has been reviewed by the company's Auditors.
Stockholm 11 November 2015
Report of Review of Interim Financial Information
Öhrlings PricewaterhouseCoopers AB
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
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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
Source: Thomson Reuters ONE (November 11, 2015 - 2:00 AM EST)
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