The October-December 2015 revenue amounted to SEK 17.2 million (SEK 15.6 million). Revenue from series production increased by 19% to SEK 16.6 million (SEK 13.9 million), due to increased annualised production of approximately 2.1 million (1.85 million) Engine Equivalents, the increased shipment of 40,700 (38,200) Sampling Cups and favourable exchange rates. Equipment revenue amounted to SEK 0.4 million (SEK 1.1 million) following the sale of equipment to an existing European customer to increase production capacity. Engineering Service amounted to SEK 0.2 million (SEK 0.3 million) following support provided to various customers globally and the sale of test pieces. The January-December 2015 revenue amounted to SEK 72.4 million, surpassing the full year revenue record of SEK 54.5 million established in 2014. The revenue from series production increased by 33% to SEK 63.6 million (SEK 47.8 million) due to an 18% increase in the full-year series production, a 15% increase in Sampling Cup shipments, and favourable exchange rates. Equipment revenue amounted to SEK 7.7 million (SEK 4.9 million), primarily derived from Mini-System 3000 installations at Doosan Infracore in Korea, at an undisclosed foundry in Japan, at Dongfeng in China, at Teksid in Portugal, and the System 3000 Plus installation at Asimco in China. Engineering Service amounted to SEK 1.0 million (SEK 1.4 million). The revenue from the leased installations is accrued over the lease period. ResultsThe 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.
*During the fourth quarter, the parent company settled its debts toward its subsidiaries in US and UK. To minimise cashflow effects, the settlement was made by offsetting receivables against repayment of equity and shareholder contribution. The parent company has reversed previous impairment losses related to these investments. The reversal, including accumulated translation differences related to these holdings, is disclosed in the income statement as financial income (SEK 15.3 million). The reversed accumulated translation differences have been reclassified from other comprehensive income (SEK -4.5 million) to financial income in the income statement for the Group (SEK +4.5 million). The January-December 2015 operating result of SEK 20.3 million (SEK 10.2 million), increased as a result of higher gross results of SEK 14.6 million, primarily derived from higher revenue, combined with higher operational expenses of SEK 2.8 million and decreased operating income (exchange losses) of SEK 1.7 million. The result for the period after tax amounted to SEK 25.2 million (SEK 12.3 million) The operational increase is SEK 8.4 million and relates primarily to the increased operating result of SEK 10.1 million and a SEK 1.7 million decrease in the financial net (primarily exchange losses). The remaining increase of SEK 4.5 million relates to the parent company's settlement of debts toward against its subsidiaries in US and UK. Deferred Tax AssetTax for the period January-December 2015 amounted to SEK 0.8 million (SEK 0.9 million). The estimated future taxable profit and deferred tax asset calculation is reassessed every quarter. As of 31 December 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-December 2015 cashflow from operations increased three-fold, by SEK 13.7 million, compared to the same period in 2014, primarily due to an increase of SEK 10.4 million in cashflow from operations before changes in working capital, plus changes in working capital (SEK 3.3 million), derived from changed cashflow from inventory (SEK -1.3 million), receivables (SEK -1.5 million) and operating liabilities (SEK 6.1 million). The total cashflow increased by SEK 6.0 million after increased investments in the amount of SEK 0.4 million, primarily related to increased activation of products under development (SEK 0.6 million) and decreased patent investments (SEK 0.2 million). Total investments amounted to SEK 1.7 million. Following the dividend of SEK 15.6 million (SEK 8.5 million), the total cashflow amounted to SEK 3.1 million (SEK -2.9 million). Liquidity on 31 December 2015 was SEK 48.0 million (SEK 44.9 million). SinterCast has no loans. Risks and Uncertainty FactorsThe 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. OrganisationWith 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 31 December 2015, 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 CompanySinterCast AB (publ) is the Parent Company of the SinterCast Group, with its registered office located in Stockholm, Sweden. On 31 December 2015, 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. PatentsSinterCast currently holds 12 (12) patents, granted or pending, and maintains 69 (59) individual national phase patents worldwide. These patents address SinterCast's metallurgical technology, thermal analysis, the Sampling Cup for CGI and ductile iron, product applications and machining. Accounting PrinciplesThe 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. IFRS 16 Leases. In January 2016, IASB issued a new lease standard that will replace IAS 17 Leases and the related interpretations IFRIC 4, SIC-15 and SIC-27. The standard requires assets and liabilities arising from all leases, with some exceptions, to be recognized on the balance sheet. This model reflects that, at the start of a lease, the lessee obtains the right to use an asset for a period of time and has an obligation to pay for that right. The accounting for lessors will in all material aspects be unchanged. The standard is effective for annual periods beginning on or after 1 January 2019. Early adoption is permitted. EU has not yet adopted the standard. The group has not yet assessed the impact of IFRS 16. No material transactions have taken place between SinterCast and the Board or the Management during the period. Events after the Balance Sheet DateThere have been no significant events since the balance sheet date of 31 December 2015 that could materially change these financial statements. The following press releases have been issued: Nomination CommitteeThe 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: nomination.committee@sintercast.com) before 25 March 2016. Annual General Meeting 2016The 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 agm.registration@sintercast.com 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. Dividend 2015The Annual General Meeting of SinterCast AB (publ) held on 20 May 2015 approved an ordinary dividend for 2015 amounting to SEK 1.5 (1.2) per share and an extraordinary dividend amounting to SEK 0.7 (0.0) per share. A total amount of SEK 15.6 (8.5) million was transferred to the shareholders. Proposed Dividend 2016 The Annual Report 2015The Annual Report 2015 will be published on 7 April 2016. InformationThe Interim Report January-March 2016 will be published on 27 April 2016 This report has not been reviewed by the company's Auditors. Stockholm 17 February 2016
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 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 HUG#1986520 |