INTERIM REPORT JANUARY-MARCH 2009, NOVACAST TECHNOLOGIES Ltd. (publ) SE556211079001

INTERIM REPORT JANUARY-MARCH 2009, NOVACAST TECHNOLOGIES Ltd. (publ)
SE556211079001

January - March 2009
	•	Net sales for the quarter were at 29,2 MSEK (15,3)
	•	Loss after tax was -13,7 MSEK (-3,8)  
	•	Operating loss for the period was -12,2 MSEK (-3,8)
	•	Earnings per share -1,01 SEK (-0,29)
•	Reduced adjusted loss of -13,9 MSEK Q4 2008 to -8,0 MSEK Q1 2009 as a result
of rationalization and cost reduction program
	•	Order intake was 26,2 MSEK (17,7) and order backlog was 
57,5 MSEK (13,1)
•	New financing facilities of 24 MSEK in place
•	Production start of wind power castings during March
•	New Camito orders during period
•	New marketing strategy with new CEO for merged NovaCast Foundry Solutions and
Graphyte
•	New CEO for Camito Technology Center
•	Several Camito orders after reporting period
	Events after reporting period

•	Several Camito orders after reporting period


Group development during reporting period

Net sales

Net sales for the group for the first quarter of 2009 increased to 29,2 MSEK
(15,3). Delivery of casting details to Enercon commenced during the quarter.

Result after tax

Result after tax for the period was -13,7 MSEK (-3,8). The loss is mainly due to
low income recognition in current projects within Swepart Verktyg in combination
with low capacity utilization, as well as a single cost of 1,2 MSEK. Furthermore
there was a transformer breakdown at Camito Technology Center in January. The
costs for the production stop, which are approx. 3 MSEK, are expected to be
covered mainly by consequential loss insurance, which has not been recorded in
the results for the quarter. The effects of personnel reductions that were
announced through notices of dismissal in December 2008 (18 persons at SwePart
and 8 at CTC) and February 2009 (25 persons at SwePart) have yet not reduced the
costs. The cost reduction, which is a total of almost 
1 MSEK per month, will not be noticeable until the second quarter of 2009 and
will reach full intensity during the fourth quarter of 2009.

The operating loss during the previous quarter was -28,8 MSEK, of which 14,9
MSEK was considered a single event, i.e. an adjusted net loss of -13,9 MSEK. The
corresponding adjusted net figure for the period is -8,0 MSEK, without
consideration for the effects of personnel reductions. 

Cash

Cash and cash equivalents at end of accounting period were 23,8 MSEK (10,2)
including unutilized check credit of 7,0 MSEK and unutilized other granted
credit facilities of 14,7 MSEK. Trade debtors for the group were at 17,7 MSEK
(12,4).

During the period the group was granted new credit of 24 MSEK in a combination
of bank loan, 12 MSEK and loan from ALMI Skåne, 12 MSEK.


Order intake and order backlog

Order intake for the quarter was 26,2 MSEK (17,7) of which 21,2 MSEK (13,3)
applies to the Automotive business area and 5,0 MSEK (4,4) applies to activities
within foundry technology. Outgoing order backlog was 57,5 MSEK (13,1) of which
the Automotive business area reached 56,7 MSEK (13,1) and Foundry Technology
reached 0,8 MSEK (0). 

Investments

Reported investments during the quarter amounted to 0,1 MSEK (5,1). 


Development per business area and market during reporting period

Automotive

Net sales for this business area were 25,0 MSEK (11,1) during the period.
Operating loss was -12,1 MSEK (-4,1). Order intake during the period was 21,2
MSEK (13,3) and outgoing order book was 56,7 MSEK (13,1). 

Camito AB

The group's sales and marketing organization has worked intensely with a
considerable number of enquiries and quotations. As a result of the market
situation large projects have tended to be changed and delayed in the final
decisions about production, i.e. submitting orders. At the end of and after the
reporting period we noted a certain improvement in closing deals for smaller
projects, where lead times and time to production start are most often very
narrow. 

During the period, as well as the first weeks after, Camito received orders for
smaller projects from five  customers and further orders are expected in the
near future. 

Camito received an order during the period for the first Camito die shoe casting
from August Läpple GmbH & Co KG in Heilbronn, Germany, that will be used for the
production of car body parts for an international automotive group. August
Läpple GmbH & Co KG in Heilbronn is one of Europe's leading manufacturers of
stamping tools, production systems and car body parts, with customers like BMW,
Mercedes, Porsche, Volkswagen, Volvo, Ford and Jaguar. 
Camito has also received orders for stamping die shoe castings and complete dies
from Schweikert GmbH, Germany. The orders are for trim and flange dies and
stamping die shoe castings for delivery to one of the world's leading
international automotive groups. Schweikert is one of Europe's leading system
suppliers of stamping dies and car body parts, with customers like VW, Audi,
Porsche, BMW and Mercedes. 


Camito Technology Center AB (CTC)

Production of the order signed with Enercon during the third quarter of 2008 in
excess of 30 MSEK for castings to the wind power industry, began during March
2009. Efforts to increase the share of castings for the wind power industry are
part of our strategy to change the product mix at the foundry, mainly to level
out the expected fluctuations in orders for Camito castings from the automotive
industry. Production will now increase successively, reaching the planned annual
pace at the end of the fourth quarter in 2009.   

All production of smaller castings at the old foundry was terminated at the end
of the fourth quarter in 2008, leaving 8 persons with a notice of dismissal. The
effects of staff reductions will start to give an impact in the second quarter
of 2009.

A serious production stop due to transformer breakdown took place during the
period. The transformer has since been repaired and re-installed but the stop
has caused reductions in volume and results, which in turn have relatively
considerably effected the quarter. Claims have been filed to our insurance
company for coverage through consequential loss insurance. These claims of about
3 MSEK have not been taken into consideration in the figures for the quarter.

Janni Dimovski assumed duties as new CEO for CTC during the period. Janni is
also CEO for Swepart Verktyg, which facilitates the coordination of our
production units management-wise, as a lead in SwePart's changeover to Camito
technology. 


Swepart Verktyg AB 

Reprocessing of the order book prior to acquisition of SwePart Verktyg is
proceeding and despite certain provisions in the annual accounts for 2008 we
cannot exclude further exceeding costs until these projects are finalized during
quarter three of 2009. Production has caused several difficult bottlenecks in
certain production phases, while at the same time the general booking level has
been too low as a result of slow order flow.

During December 2008 18 persons received notice of dismissal and a further 25 in
February 2009, the effects of which will be felt during the second quarter of
2009.

Sandvik's Production Improvement Program (PIP), aimed at optimizing efficiency
mainly in time-consuming machining phases is currently being conducted within
SwePart. Training and adjustment towards becoming a distinct specialist at
producing Camito-based dies is taking place at the same time in accordance with
the strategy that was set down at acquisition.   



 Foundry Technology (incl. Graphyte product area)

Net sales for the business area during the period were 4,2 MSEK (4,2). Operating
loss was 
-0,1 MSEK (0,3). 

Order intake, invoicing and result within the new merged unit have been better
than expected during the period, given the state of the market.


NovaCast Foundry Solutions AB

NovaCast Foundry Solutions received orders for among others NovaFlow&Solid
simulation package from three customers, Columbus Steel Castings (USA), a
European customer and Omen (Israel).

Since the turn of the year Peter Vomacka is the new CEO at NovaCast Foundry
Solutions. Peter was previously sales manager at Graphyte AB.

The installed licence base at end of March was 645, with 424 customers in 42
countries. The number of Technology Partner Agreements (TPA) that generate
income at approx. 15 % of the product price was 212.

Graphyte

Business activities within Graphyte were merged with those at NovaCast Foundry
Solutions during the period, within the framework for a larger strategic
approach where the “new” NovaCast Foundry Solutions broadens and adjusts its
total product range to the global foundry industry. Graphyte will thereby be an
important product area within the new company. Strategy changes are underway
with full force and are expected to be fully developed and introduced
successively before the end of the year.

Customer tests with the new Graphyte ® technology are proceeding according to
plan and we are looking forward to the possibility of installation orders during
2009.


Parent company

Net sales for the parent company were 2,3 MSEK (3,1) during the period, of which
intragroup sales were 2,3 MSEK (3,1). Operating loss was -0,3 MSEK ( -0,4). 


Risks and uncertainty factors

By far the largest risk for 2009 is the prevailing industrial and financial
crisis in many parts of the world. It is impossible to say how this will affect
the NovaCast group. We are focusing on measures that will increase our
preparedness for a difficult 2009. 

The new CTC foundry is dependent on considerable increases in production
volumes. The demand for Camito castings is not dependent on number of sold cars,
but we cannot exclude negative consequences of problems within the automotive
industry. In order to counter these risks we are intensifying efforts to change
the product mix at the foundry, mainly through increased volumes from the wind
power industry. 

For further information about the group's operational and financial risks, risk
management and risk exposure please see NovaCast Technologies´ annual report on
www.novacast.se 


Events after reporting period

After the reporting period Camito received an order for Camito castings and
traditional castings to a new customer in Austria.  

Camito and SwePart Verktyg received an order from Finnveden Metal Structures for
a large progressive tool. 

SwePart Verktyg has also received an order for the construction and production
of trimming dies from Scania's wholly-owned subsidiary FerruForm in Luleå,
Sweden. The order also includes adjusting and adaptation of a number of existing
stamping dies, s well as casting die shoes from the special foundry at Camito
Technology Center.

Future developments

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. The general market development combined with the prevailing global
financial crisis render it irrelevant to make any prognoses of our own this
year. 

The Board and management will focus on adapting business activities according to
market conditions, on liquidity and cash flow, as well as on creating a new
business platform for expansion.  

Stockholm, 22 April 2009


Hans Svensson
CEO

For further information contact Hans Svensson, CEO at NovaCast Technologies AB,
+46 457-38 63 02 or +46 705 652 250.

This report has not been audited by company auditor.