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Third party research

SinterCast: Engine equivalents not back to growth yet - ABG

SinterCast

This is a third party research report and does not necessarily reflect our views or values

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Sales -7% (EEs -9%, SCs +15%), EBIT -19% vs. our estimates
Opex in line, low equipment sales only a timing effect
EEs will recover throughout the year, supported by new programmes


Q1 results

Sales fell 16% y-o-y and were 7% below our estimate. Annualised engine equivalents produced were 3.1m, falling 21% y-o-y, and were thereby 9% below our estimate. Sampling cups sold increased 3% y-o-y, and were 15% above our estimate. EEs did not recover q-o-q as we had anticipated, which in conjunction with low equipment sales drove the miss. With a margin of 37.6%, 5.5pp below our estimate, EBIT adj. was 19% below our estimate. Opex was however in line, supported by anticipated positive FX-hedge revaluations, meaning the EBIT miss was entirely driven by the lower sales.
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