Wednesday, 22 February 2017

Diesel F-150 set to boost SinterCast

The chief executive of foundry process control technology specialist SinterCast sees further substantial growth for the company in the year ahead.

Steve Dawson, president and chief executive officer, pinpoints Ford Motor Company’s in-house 3-litre V6 diesel as one reason for continued growth.
“Based on a SinterCast-CGI cylinder block, the engine will be the first-ever diesel offered in the F- 150,” declared Dawson, who added: “Diesel sales are scheduled to begin in the autumn of 2017.”
“Together with the 2.7-litre V6 SinterCast-CGI EcoBoost gasoline engine, the introduction of the diesel engine option results in two of the five F-150 engine options being based on SinterCast-CGI vee cylinder blocks,” he added.
SinterCast specialises in process control technology for the foundry production of compacted graphite iron (CGI) principally (but by no means exclusively at Tupy SA of Joinville, Brazil),
 Dawson sees the overall outlook for series production remaining positive, with the pick-up sector in the US continuing to perform well as demand remains strong for full- size vehicles.
“At the North American International Auto Show in early-January, Ford introduced a 3-litre V6 diesel engine option for the model year 2018 F-150 pick-up,” noted Dawson. “This is North America’s best-selling truck for 40 consecutive years and best-selling vehicle for 35 years.
“The US pick-up outlook was buoyed during the fourth quarter by new awards and recognition for the 2017 Ford Super Duty pick-up,” said Dawson. “After winning the Truck of Texas award in September, the Ford Super Duty, with a take rate of more than 80 per cent” for the SinterCast-CGI V8 diesel engine, won the Motor Trend Truck of the Year award in November. The Ford Super Duty was also one of three finalists at the North American Car and Truck of the Year awards at the North American International Auto Show in January.
Referring to issues with VM Motori’s 3-litre V6 diesel engine fitted to the Fiat Chrysler Automotive (FCA) Ram 1500 pick-up truck, Dawson noted that “in early-January, the EPA issued a notice of violation to FCA stating that, under certain conditions, NOx emissions from the 3-litre diesel engine were above the permissible limit.”
Dawson added: “FCA has stated that it has complied with the emissions legislation and it will provide a formal reply after evaluating the assertions issued by the EPA. In the meantime, sales of the model year 2016 Ram 1500 diesel are continuing and OEMs including Ford, General Motors and Mazda have announced new diesel engine offerings in their US products.”
At a business level, since 2012, SinterCast has achieved four consecutive years of growth, with 50 per cent increase in series production, 64 per cent increase in revenue and a 25-fold increase in operating result. This positive development, coupled with the confidence in the business outlook, has led the Board to propose an increased dividend that will result in a cumulative transfer of SEK 100 million to the shareholders since the first dividend was provided in 2011.

In the 2016 financial year, SinterCast cash flow from operations was SEK 26.9 million compared with SEK 21.3 million in 2015. Total liquidity was SEK 45.3 million from SEK 48 million previously. Total revenue moved from SEK 72.4 million in 2015 to SEK 75.4 million.

1 comment:

Alan Bunting said...

Diesel power for light-duty vehicles appears to be on the rise in North America, but on the decline in Europe. There's a long way to go however before the prejudice against diesel widely held by American passenger car buyers can be overcome. The VW scandal hasn't helped in that regard, though it must have prompted Ford, GM, FCA and their Japanese rivals in the seemingly burgeoning light pickup market for diesels to ensure they're squeaky clean on emission limit compliance.
Regardless of Donald Trump's assertion that global warming is a hoax, diesels are good for reducing greenhouse gases, though it's doubtful whether that in itself is likely to swing vehicle purchases away from gasoline power. But its associated fuel saving qualities might, especially if fuel prices continue to climb back to say 2010 levels.
That aforementioned anti-diesel prejudice is based also on perceived engine refinement, based on impressions gained from crudely-noisy and rough-running heavy- and medium-duty trucks, as well as totally-unrefined North American schoolbuses.
Few drivers of full-sized American sedans - inevitably gasoline engined - have ever ridden in, let alone driven, a European car of similar size powered by a smooth, quiet modern-day diesel engine. If they had, their perceptions might well change.