SinterCast: Strong volume, but 7% below on revenue - ABG

Sales 40.3m (-7% vs. ABGSCe), adj. EBIT 16.7m (ABGSCe 19.9m)
-2.4m NRI, withdrawal from development of Tracking Technologies
UAW strikes seems to be resolving without impact on SinterCast


Q3 results

Sales came in at SEK40.3m (-7% vs. ABGSCe 43.5m), up 35% y-o-y. EBIT was SEK 14.3m (-28% vs. ABGSCe 19.9m), and included -2.4m in NRI:s, -2.0m related to impairment costs in capitalised development and -0.4m in severance payments, both linked to the decision to withdraw from the active development of Tracking Technologies. Adj. EBIT was SEK 16.7m (-16% vs. ABGSCe 19.9m). This resulted in an EBIT margin of 35% (ABGSCe 46%), and 41% adjusted (ABGSCe 46%). Net profit was SEK14.2m (-28% vs. ABGSCe 19.8m). While the preannounced EE:s and sampling cups were incorporated into our estimates, revenue came in a bit lower than expected, which we believe was in turn the reason for the lower than expected adj. EBIT. There was no impact from the UAW strikes on SinterCast in the quarter, and the Ford and Stellantis strikes have now been resolved.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2023/11/sintercast---strong-volume-but-7-below-on-revenue/