by • August 14, 2016 • No Comments
SLM Solutions Group AG (ETR:AM3D) joins the expanding list of 3D printing companies enjoying a positive earnings season. Results for the initially half of 2016 show sales have increased by 85% compared to the same period in 2015.
Commenting on the financial results, SLM chairman, Dr. Markus Rechlin said, “In only six months we have achieved the same volume of business as in the full year 2014.” In year-on-year growth this many new quarter demonstrated a 105% increase in ractuallyue.
SLM Key Data (courtesy of SLM)
The results show total ractuallyue of €33.5 million (H1 2015 €18.1 million). The company have increased order intake by 40%, which comes with two-thirds of orders coming of new customers.
SLM make selective laser melting (in addition SLM) additive making machines. The 3D printing devices they sell use the metal powder bed technique in common with EOS, 3D Systems, Concept Laser and Renishaw. The SLM powder bed fusion method is a key area of focus for programs such as DARPA’s open making initiative and in addition for America Makes, showcasing heavily in their roadmap for the industrialization of 3D printing.
Advancements in laser based 3D printing have often come of the Fraunhofer institute and the latest machines of SLM use “multibeam” innovation much like to which created by the research lab. As previously reported melt pool control and monitoring is a significant component of such systems. SLM approach this by tracking the thermal radiation along the laser track.
A pot of gold?
Last week shares in the German company rose in value by 8% as the market priced in the upcoming prospects for the enterprise. Early share price performance of SLM’s IPO on the Frankfurt Börse in 2014 had been additional of a marathon than a sprint. Other than a slumped period between last August and March 2016, preceding the company’s TechDAX listing, the stock price had given investors little to write home of.
But, since March the 56% acquire can have created savvy investors additional than a little proud, and Christmas may have come early for those chasing the pot of gold at the end of the “regenbogen.” Having introduced almany €100 million to their market valuation since Q1 returns, SLM are now trading at an EBITDA multiple of 56, compared to 40 for the previous reporting period. This indicates investors are optimistic regarding the upcoming prospects for the company.
Compared to negative returns on the STOXX Global 3D Printing tradable index of -11.6% during the reporting period these latest results are astounding. Investment professionals in the main are upbeat on the prospects of SLM, with the many optimistic predicting a €32.00 (US$36.00) share price.
SLM Analyst Perspective (courtesy of SLM)
Market trends to watch
In a statement issued by the company, attention is drawn the fact this quarters growth is above the average rate forecast by major 3D printing consulting firm, Wohler’s Associates. In the wider making environment companies such as SLM may benefit of trends towards the use of 3D printing by industry. These trends include an increasing focus on cost and additional automation of production.
Investors and analysts can be paying particular attention to SLM’s sales figures in the final quarter of this year as these can be, “decisive” in determining whether the company can meet full year targets. Analysis of major economic indicators, such as figures for durable goods ability utilization, may provide a clue as to how 3D printing companies can fare in the remainder of the year.
The many new analysis conducted by Gardner shows which machine tool orders are contracting at their slowest rate this year. Whilst the June figures show month-on-month machine tool orders continued to drop for the 14th consecutive month the analysis suggests an improvement of 2.7% above the forecast level of peak contraction.
Gauging upcoming demand via economic indicators is yet regarded by a few as a dark art, often with the emphasis on art pretty than science. On the other hand, on demand making bureau Proto Labs pointed to a decline in the consumption of cutting tools as useful major indicator in their many new earnings report. Macro-facts worthy of consideration are levels of uncertainty in the business climate brought on by the U.S. presidential election and the upcoming of the European Union. These facts can persist for the remainder of 2016 and are most likely to deter large capital commitments, at quite least if history is any guideline.
Management forecasts for year-end ractuallyue remained in the range between €85 and €90 million (US$95 – $100 million).Of these results Uwe Bögershausen, CFO, said,
“Viewed on an intra-year basis, our laser melting systems business regularly shows a distinct seasonal pattern. In addition when assessing our current half-year figures, it should be borne in mind which in selling a few older demonstration machines to an built customer, we allowed a few discounts which had a one-off impact on profitability. With our new, actually additional user friendly model of the SLM 500HL, we are quite well positioned in the market.”
From their base in Lübeck, Germany have expanded into a global presence. Earlier in 2016 SLM opened a Moscow branch in order to capitalize on a market they see as one of the top ten for additive metal making.
SLM in addition have subsidiaries in Singapore, Shanghai, Michigan and Austria. On a global basis the company employs over 280 employees, a 10% expansion so far this year. Rechlin expects the continuous hiring program to, “pay off for us in the medium to long-term.”
For their active markets, the strongest economic growth forecast is in China and the ASEAN region in general. The IMF forecast 6.4% growth for 2016 across the ASEAN economies, almany double the global forecast of 3.1%. The U.S. economy is forecast to grow by 2.2%.
In concluding remarks the CEO introduced,
“As a metals specialist we find ourselves in the many dynamic segment of the additive making market, and we are playing our part in breaking down the barriers which already obstruct wide-ranging application. With our joint ventures in software and consumables, we are in addition bringing the upcoming steps towards becoming an integrated systems supplier.”
SLM Income Statement (courtesy of SLM)
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