NOVACAST TECHNOLOGIES AB (publ) 556211-0790 BOKSLUTSKOMMUNIKÉ JANUARI-DECEMBER 2009

NOVACAST TECHNOLOGIES AB (publ) 556211-0790 BOKSLUTSKOMMUNIKÉ JANUARI-DECEMBER
2009

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 
(-1,65)
•	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

Net sales

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

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.  


Investments

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

Automotive

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. 
 
Camito AB

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%.   

Parent company

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. 

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. 

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.    
 
Nominating committee

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 kenneth.turban@telia.com 

Audit committee

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

Hans Svensson
CEO

For further information, contact Hans Svensson, CEO NovaCast Technologies AB,
+46 454751032 or +46 705652250.

Fullständig rapport finns i den bilagda filen.