SinterCast

Four consecutive quarterly records in 2022

Fourth Quarter 2022
· Revenue for Period: SEK 32.9 million (SEK 29.6 million)
· Operating Result: SEK 8.0 million (SEK 7.4 million)
· Earnings per Share: SEK 1.11 per share (SEK 1.02 per share)
· Cashflow from Operations: SEK 11.8 million (SEK 4.3 million)
· Dividend Payment: second instalment of SEK 2.50 per share was paid on 10 November 2022
· Fourth quarter and full-year series production up 13%
· Positive outlook as Ford launches Model Year 2023 Super Duty
· Upturn in year-end installation revenue; positive installation outlook

Full Year 2022
· Revenue for Period: SEK 118.7 million (SEK 107.4 million)
· Operating Result: SEK 30.6 million (SEK 29.5 million), negatively affected by the termination of the WHB deferred purchase agreement, in the amount of SEK 4.9 million
· Earnings per Share: SEK 4.68 per share (SEK 4.65 per share)
· Cashflow from Operations: SEK 25.4 million (SEK 32.9 million)
· Dividend: Proposed ordinary dividend of SEK 5.00 per share (SEK 4.50 per share) and extraordinary dividend of SEK 0.50 per share (SEK 0.50 per share), equivalent to SEK 39.0 million (SEK 35.5 million), to be paid in two equal instalments
· Installed Base: 57 (55) installations in 13 (14) Countries, including 25 (25) fully automated systems, 25 (24) mini-systems and seven (six) tracking systems

CEO Message
 
Highest December, highest fourth quarter and highest full-year on record
Year-on-year series production grew by 13% in the fourth quarter, finishing at 3.5 million Engine Equivalents and establishing a new record for the fourth quarter.  Following annualised production of 3.7 million Engine Equivalents in both October and November, series production decreased to 3.3 million Engine Equivalents in December due to traditional year-end shutdowns; however, the December volume represented the highest December on record, bettering 2021 by 10% and the pre-Covid December 2019 volume by 32%.  The fourth quarter performance resulted in four consecutive quarterly records in 2022 and provides a positive starting point for continued growth in 2023.
 
Full-year series production also established a new record, finishing 13% above 2021 with 3.5 million Engine Equivalents.  While the volume peaked at 3.9 million Engine Equivalents in June, series production flattened after the summer shutdown period, preventing the company from reaching the four million milestone goal before year-end.  The shortfall was due to a combination of: reduced production of the Ford Super Duty pickup during the second-half due to a model year changeover that affected annualised monthly volume by more than 200,000 Engine Equivalents; the unexpected stoppage of production of the Audi V6 during the first-half of 2022, affecting full-year volume by approximately 100,000 Engine Equivalents; an 8% decline in passenger vehicle sales in our largest end-user market in the US; and, some delays in the ramp rates of two new commercial vehicle programmes. Despite these 2022 headwinds, the production outlook for 2023 is positive as the Model Year 2023 Ford Super Duty began production in early-2023, the ramp of the commercial vehicle programmes is forecast to accelerate, US passenger vehicle sales are expected to increase by 5~10%, and semiconductor supply is projected to improve throughout the year.

Series production was the workhorse of 2022, driving total revenue up by SEK 11.3 million (10%), even though installation revenue decreased by SEK 5.1 million and post-pandemic adjustments in customer stockholding reduced Sampling Cup shipments by 6% and consumable Thermocouple Pair shipments by 44%. The revenue from series production increased by 16%, benefitting from increased volume and favourable exchange rates, but offset by the reduction in consumables shipments. Overall, the full-year operating result was SEK 30.6 million with a 25.8% operating margin and earnings of SEK 4.68 per share.
 
The fourth quarter also saw the renegotiation of payment terms with a major customer, reverting the previous increase from 60 days to 90 days that was imposed at the start of the year, back to 60 days.  This reversal to 60 day payment terms took effect from 1 January 2023 and will result in a one time step-increase in liquidity at the end of the first quarter, improving the Board’s assessment of the dividend proposal for financial year 2022.

Robust installation activities provide positive outlook
Installation activity finished on a positive note with the commissioning of a new Ladle Tracker installation at the Teksid foundry in Mexico during early-December and a mini-system installation at the Dongya foundry in China at year-end.  Together, these activities provided fourth quarter revenue of SEK 2.1 million, lifting the full-year installation revenue to SEK 3.4 million. The near-term outlook for installation revenue is positive, building on the planned System 4000 installation at the Dongfeng Auto foundry in China during the second quarter and several ongoing discussions for new CGI process control systems, capacity and functionality upgrades, and new tracking installations. Although the timing of the new installations is not yet defined, the discussions are mature and the outlook is for installation revenue to return to the historical level of approximately SEK 8 million in 2023 and 2024.

SinterCast is the world’s leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). The properties of CGI enable improved transport solutions, increasing efficiency and reducing carbon emissions in passenger vehicle, commercial vehicle and industrial power applications.  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 production efficiency and Industry 4.0 traceability in a variety of applications. With 57 installations in 13 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

For more information:
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office: +46 150 794 40
Mobile: +44 771 002 6342
e-mail: steve.dawson@sintercast.com
website: www.sintercast.com
CIN: 556233-6494

This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 8 February 2023.