NOVACAST TECHNOLOGIES AB (publ) 556211-0790 INTERIM REPORT FOR PERIOD JANUARY - MARCH 2010

NOVACAST TECHNOLOGIES AB (publ) 556211-0790 INTERIM REPORT FOR PERIOD JANUARY -
MARCH 2010	 

January - March 2010
													
													
	•	Net sales for the quarter were at 19,2 MSEK (29,2)
	•	Loss after tax was -15,1 MSEK (-13,7)  
	•	Operating loss for the quarter was -13,7 MSEK (-12,2)
	•	Earnings per share before and after dilution were -0,74 SEK 
(-1,01)
	•	Order intake was 7,0 MSEK (26,2) and order backlog was 
20,8 MSEK (57,5)
•	Private placement new share issue to Fouriertransform has provided  40 MSEK
•	New market strategy
•	Camito order from Schweikert
•	Strategic order from new large international die customer 
•	Notices of dismissal for 35 persons
•	Concentrated management - Rolf Mastenstrand appointed as chief operating
officer, COO



Group development during reporting period

Net sales

Net sales for the group for the first quarter of 2010 were 19,2 MSEK (29,2). The
beginning of the quarter was very weak, mainly due to the fact that many
customers had closed down operations during a large part of December and
January. A production stop at CTC in the beginning of March, with two weeks´
loss of production, has influenced sales. 

Result after tax

Result after tax for the period was -15,1 MSEK (-13,7). The low result is mainly
due to low sales and partly a furnace breakdown at CTC that resulted in two
weeks' loss of production.

Cash

Cash and cash equivalents at end of accounting period were 28,9 MSEK (23,8)
including unutilized check credit of 14,5 MSEK. Accounts receivable for the
group were at 9,4 MSEK (17,7).

Order intake and order backlog

Order intake during the period was 7,0 MSEK (26,2) of which 3,6 MSEK (21,2)
applies to the Automotive business area and 3,4 MSEK (5,0) applies to activities
within foundry technology. Outgoing order backlog was 20,8 MSEK (57,5) of which
the Automotive business area reached 19,6 MSEK (56,7) and Foundry Technology
reached 1,2  MSEK (0,8). Order intake has been influenced by the long holiday
stops at many customer groups in December and January. Decisions about several
middle-sized and large automotive projects are expected to be made during the
second quarter and Camito/Swepart is being considered as supplier in several of
these projects.  

Investments

Reported investments during the first quarter of 2010 amounted to 0,4 MSEK
(0,1). 

 

Development per business area and market during reporting period

Automotive

Net sales for this business area were 16,3 MSEK (25,0) during the period.
Operating loss was -11,1 MSEK (-12,1). Order intake during the period was 3,6
MSEK (21,2) and outgoing order book was 19,6 MSEK (56,7). 
 
Camito AB

Group marketing activities within the automotive industry are continuing at a
high level. A new marketing strategy has been decided and the implementation
phase is under way. The strategy means increased focus on 10 top priority
customer groups of which three are automotive manufacturers (OEM) and 7 are
sub-contractors (Tier 1). With these prioritized customers we will strive
towards a closer relationship aimed at improving advance planning and achieving
more even production utilization at production facilities. 

Schweikert GmbH placed an order for further Camito die shoe castings during the
period, which is Schweikert's third order for Camito die shoe castings during
the last eight months. 

Camito has also received a long-term interesting order from a new leading
customer in the industry. The order includes die finishing and engineering
changes of die sets to one of the leading truck manufacturers in the world.
Discussions are under way regarding further orders during the second quarter, as
well as a closer cooperation.

Camito Technology Center AB (CTC)

Production has continued at a low level and a two-week standstill of the
foundry's large melting furnace has had a negative influence on the result.
Continued production of wind power castings has taken place during the period
and increased production is planned for the existing call-off order. 

Notices of dismissal leading to further personnel reductions of about 5 persons
were given towards the end of March. The notices are a precautionary measure
planned to be carried out should order intake not improve during the second
quarter.  


Swepart Verktyg AB 

Production and completion of dies to Magna Heavy Stamping have continued during
the whole period. The order, which came in August 2009, is the largest order so
far for complete dies produced using Camito technology. Of a total 35 dies about
one third will be produced using Camito technology. Aside from one die of 35,
production has gone well. 

Production of the older, unprofitable order backlog was completed at our own
facilities and delivery has been made to customer. The cost for these projects
is estimated at 18,0 MSEK, which has charged the result for 2009 and claims have
been made to the seller of SwePart. The claims have been rejected and NovaCast
will therefore begin arbitration. 

The general production volume has been too low during the quarter and as a
precaution, should order intake not improve, about 25 persons have received
notices of dismissal. 




Foundry Technology (including Graphyte product area)

Net sales for the business area during the period were 2,9 MSEK (4,2). Operating
loss was
 -2,6 MSEK (-0,1). 


NovaCast Foundry Solutions AB

Decreasing volume in the foundry industry has been a blow to NovaCast Foundry
Solutions during the period. Volumes could be upheld in 2009 but the long
vacation period at global foundries in December and January resulted in very low
sales during the period.  

Low customer activities during the period have been used to conduct internal
program updates, agent training and preparation for the recovery that can now be
noted within the foundry sector. The Board has among others made a decision to
continue efforts in the USA market through its wholly-owned subsidiary, NovaCast
Solutions USA Inc.

Activities within the CGI area have increased as a result of the initial
recovery within the automotive sector. Several test projects in which activities
were largely closed during 2009 are now being renewed. Among others a new
production test series of castings with Graphyte technology is being initialized
at one of the most important potential customers.  



Parent company

Net sales for the parent company were 2,7 MSEK (2,3) during the period, of which
intragroup sales were 2,7 MSEK (2,3). Operating profit was 0,4 MSEK (-0,3). 

Rolf Mastenstrand has taken up duties as the newly established post of chief
operating officer, COO, responsible for the Automotive business area. He has
thereby also taken over the operational responsibility for group production
units, SwePart Verktyg AB and Camito Technology Center AB, where previous CEO
has left the group.

Risks and uncertainty factors

Several measures have been taken to change the substantial loss after a very
weak 2009. We note a certain market recovery but we still see strong price
pressure within most product areas. It can therefore take longer than expected
before a change in the market shows in volumes and profitability. 

Both of our production facilities are dependent on increased basic production
utilization and further measures may be necessary in order to reach a balance in
business activities. 

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. 

 


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. Continued uncertainty in the general market development and the
strength of the tendency towards recovery that we are now witnessing do not
render it relevant to make any prognoses of our own.  

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  April 22, 2010


Hans Svensson
CEO


For further information contact Hans Svensson, CEO at NovaCast Technologies AB,
+46 457 386 302 or +46 705 652 250.

This report has not been audited by company auditor. 

See attached pdf-file for figures.