Oktober - december 2009
• Nettoomsättningen för kvartalet uppgick till 25,6 MSEK (39,1)
• Resultatet efter skatt blev -13,1 MSEK (-26,8)
• Rörelseresultatet uppgick under kvartalet till -12,1 MSEK (-28,8)
• Resultat per aktie före och efter utspädning blev -0,96 SEK (-1,97)
• Kostnader av engångskaraktär belastar resultatet med 1,2 MSEK (12,6)
• Likvida medel inklusive outnyttjad checkkredit uppgick på bokslutsdagen till 7,2 MSEK
• Nytt besparingsprogram beslutat
Januari - december 2009
• Nettoomsättningen för perioden uppgick till 103,9 MSEK (105,0)
• Resultatet efter skatt blev -43,2 MSEK (-22,4)
• Rörelseresultatet uppgick under perioden till -38,8 MSEK (-23,4)
• Resultat per aktie före och efter utspädning blev -3,17 SEK
• Orderingången var 104,2 MSEK (151,6) och utgående orderstock uppgick till 32,2 MSEK (58,2)
• Förluster i förvärvad orderstock har belastat resultatet med ca 18,0 MSEK
• Framgångar för Camitotekniken med order från bl a Magna, Läpple och Schweikert
• Dotterbolag i USA etablerat
• Utökat kreditutrymme med 24 MSEK
Händelser efter rapportperiodens utgång
• Nyemission på 40 MSEK tecknad av Fouriertransform AB och inbetalning sker senast 26 februari
• Viktig verktygsorder från ny global aktör
Group development during reporting period
Group net sales for the period were at 103,9 MSEK (105,0).
Result after tax
Result after tax for the period was -43,2 MSEK (-22,4).
The result was charged with costs of a single nature totaling 1,2 MSEK (12,6). Losses in the acquired backlog in SwePart have also charged the result with approx. 18 MSEK during 2009. A claim of 14,4 MSEK has been filed against the seller of the company.
Cash and cash equivalents at end of accounting period were 7,2 MSEK (7,8) including unutilized check credit of 5,8 MSEK. Accounts receivable for the group were at 13,5 MSEK (28,8).
During the period the group was granted new credit of 24,0 MSEK in a combination of bank loan, 12,0 MSEK and loan from ALMI Skåne, 12,0 MSEK.
Cash flow for the year, -2,0 MSEK, of which -17,9 MSEK is from operations and 15,9 MSEK from investment and financing activities.
The new shares issue that was conducted after the end of the accounting period will provide 40,0 MSEK in equity and cash and cash equivalents.
Order intake and order backlog
Order intake during the period was 104,2 MSEK (151,6) of which 85,9 MSEK (135,1) applies to the Automotive business area and 18,3 MSEK (16,5) applies to activities within foundry technology. Outgoing order backlog was 32,2 MSEK (58,2) of which the Automotive business area reached 31,4 MSEK (58,2) and Foundry Technology reached 0,8 MSEK (0). Order intake and order backlog refer only to written order requests, not framework agreements.
Recorded investments in tangible and intangible fixed assets during the period were at
7,4 MSEK (24,3). The main investments for the period were in overhead cranes, outdoor warehouse, asphalting surfaces at Camito Technology Center and streamlining machines within SwePart.
Further investments were made in product development for Camito and quality assurance for castings to the wind power industry within CTC and Camito.
Development during the period per business area and market
Net sales for this area were at 86,4 MSEK (87,2) during the period. Operating loss was -37,2 MSEK (-20,4). Order intake during the period was 85,9 MSEK (135,1) and backlog totaled 31,4 MSEK (58,2).
Excess capacity within the die industry has been high during the period. This has generally led to a difficult press on pricing and several competitors were forced to close down. Several new car projects have been postponed in later phases which has resulted in extensive quotations on our part but by far too few closed deals.
The introduction of Camito technology within the automotive industry has continued and six new orders were signed during the year, the largest being 30 dies to Magna Heavy Stamping, of which approximately one third were based on Camito die shoe castings. Other new customers for the Camito technology were among others Schweikert GmbH who have ordered Camito castings twice, as well as Finnveden Metal Structures and August Läpple GmbH&Co.
We are observing increased interest in Camito technology and with more Camito dies on the market the concept is being spread.
The sales and marketing organization has been kept intact and focused on Sweden and Europe through a sales office in Germany.
Camito Technology Center AB
The produced tonnage at CTC decreased by 29 % to just below 3.000 tons, which in itself reflects the market development in the foundry industry during 2009. The decrease was largely dependent on postponed order requests for wind power castings. In November an extended framework agreement was confirmed and a new large order request for production in 2010 was placed.
Personnel reductions of 28% to 29 persons were made to parry the low volume during 2009.
Production of Camito castings to automotive customers increased during the year. Certain continued product development to broaden the Camito concept for forming dies has continued according to plan.
SwePart Verktyg AB
A large part of the losses, approx. 18,0 MSEK, in the Automotive area are attributed to production of the orderstock that was taken over with the acquisition of SwePart at the end of 2008. These orders are now in the final phase of delivery and 1 MSEK has been reserved for finalization of the orders. Losses in the old order stock were of such a nature that a claim of 14,4 MSEK has been filed against the seller of the company.
Personnel have been decreased by 24% to 65 persons during the year as part of the efficiency program decided on at the end of 2008. The effect of the reduction during 2010 is expected to be approximately 0,8 MSEK per month.
The SwePart changeover to Camito specialists has continued, among others in cooperation with Sandvik who have conducted an efficiency program for SwePart’s machining department, during a large part of the year. A total of approx. 1,5 MSEK has been invested in new technology and materials and the goal is to reduce total machining time by 30 %.
Foundry Technology (incl. Graphyte product area)
Net sales for the business area were 17,5 MSEK (17,8) during the period. Operating loss was -1,6 MSEK (-3,0).
NovaCast Foundry Solutions AB (NCFS)
The installed licence base increased by the end of the accounting period with 43 (34) licenses to 684 (640). The total number of customers is 447 (419) in 42 countries. The number of Technology Partner Agreements (TPA), which generate annual income corresponding to approx. 15 % of the product sales price, has decreased to 211 (213) and this means that 47% (52%) of our customers have signed TPAs.
Foundry Solutions established a subsidiary in Chicago, USA towards the end of the year. Despite the weak market and despite the introduction year, the USA business activities have generated a positive result.
Foundry Solutions volume and result have been satisfying considering the fact that the underlying volume in the global foundry industry has decreased by over 40%.
Net sales for the parent company were 9,8 MSEK (13,4) during the period, of which intragroup sales were 9,8 MSEK (13,4). Operation loss was -0,2 MSEK (1,2). The parent company’s revenue consists mainly of sales of services within the group and the lower volume is a result of the cost savings program that has been conducted during the year.
As a result of the year’s losses the parent company’s shares in SwePart Verktyg AB have written down with 18 MSEK and in Camito Technology Center with 12 MSEK.
Risks and uncertainty factors
After a very weak 2009 several measures have been taken to improve the result. A certain recovery in the market has been noted but we can still see extensive price pressing within most of the production areas. It may therefore take longer than expected before market improvement gives results in volume and profitability.
Both of our production units are dependent on increased base orders and further measures for achieving balance in activities can not be excluded.
For further information about the group’s operational and financial risks, risk management and risk exposure please see NovaCast Technologies’ annual report.
Events after reporting period
In order to decrease the company’s financial risks and strengthen cash and cash equivalents and the balance sheet prior to coming deals, the Board has after the end of the accounting period decided on a new shares issue. The issue was conducted on condition that approval was given by the general shareholder’s meeting and it was a private placement share issue for Fouriertransform AB, who at the extraordinary general meeting on February 24 subscribed to 310.000 A-series shares and 6.356.667 B-series shares, altogether 6.666.667 shares, at the issue price of 6,0 SEK per share for both A-series shares and B-series shares, which will increase the Company’s capital with 3.333.333,50 SEK.
Payment for the shares will be made no later than February 26 and the new shares are expected to be registered during next week.
As in previous years, NovaCast Technologies AB does not give any prognoses, mainly since business activities are still in the construction phase, where individual orders or business deals can create significant swings in these activities.
During 2010 we will focus on strongly improved results, cash flow from operations, as well as active marketing efforts.
Annual general meeting and proposal for dividends
The annual general meeting will be held on 22 April 2010 in Stockholm in accordance with a separate notice. The annual report is expected to be distributed to registered shareholders at the beginning of April 2010. It will also be available from Company office from 8 April 2010.
The Board has suggested no dividends for 2009.
The Nominating Committee, which was elected at the annual general meeting in 2009, consists of Kenneth Turban (chairman), Torsten Nilsson and Bo Hedenström. Committee chairman can be reached at email@example.com
The audit committee consists of the whole Board but the CEO does not participate in the committee’s final evaluations or in contacts with company auditor.
This report has not been audited by company auditor.
Ronneby 25 February 2010
For further information, contact Hans Svensson, CEO NovaCast Technologies AB, +46 454751032 or +46 705652250.