Arcam has published their Interim financial report for the first 6 months of 2017. The Swedish additive manufacturing company characterises this period as a “challenging market situation.”
Despite this sales grew 32%, increasing to 407.0M Swedish Krona ($50.33M) versus 307.6MSEK ($38.03M) for the same period in 2016.
Increased sales of metal additive manufacturing systems
During the first 6 months of the year Arcam delivered 32 Electron Beam Melting (EBM) additive manufacturing systems, an increase of 4 on the comparative figure.
Magnus René, Arcam President & CEO, writes “The growth in the period is due to the interest from our largest shareholder GE, in EBM systems for test and evaluation. In the period the order intake from GE was 12 EBM systems and 16 systems were delivered to GE.”
Operating income increased to 5.5MSEK ($0.68M) compared to 4.1MSEK ($0.51M) for the prior period. The company made a loss with net income at -19.2MSEK (-$2.37M) loss versus 9.8MSEK profit ($1.21M) for the comparative.
New orders for the period totalled 23, leaving an order book at end of the quarter containing 16 EBM systems. Arcam is optimistic about continuing growth in sales and reports they are focused on, “long-term strategy to industrialize the EBM technology and simultaneously developing the metal powder manufacturing and contract manufacturing business.”
Aerospace drives, while orthopedic industry interest grows
Arcam’s CEO says that the new orders and demand in general is driven by the, “aerospace industry that is now moving into production, and by the increasing interest for Additive Manufacturing from the orthopedic industry.” The CEO also notes that, “customers are still hesitant launching large manufacturing projects.”
Future sales of industrial 3D printing systems are likely to be driven by “increased product maturity as well as new application areas.”
When this increased demand does arrive Arcam hope to capitalise not only by increasing sales of their EBM additive manufacturing machines, but also on the metal powder feedstock used.
Through their acquisition of AP&C, Arcam are a leading supply to users of metal 3D printing systems across a range of markets – and not limited solely to users of Arcam EBM systems.
René notes that, “demand of metal powder for Additive Manufacturing continues to grow rapidly” and Arcam continues “to secure long-term supply agreements to important customers within the orthopedic and the aerospace industries.”
Arcam plans to double their production capacity of metal powder within months. “At AP&C we have expanded the organization to prepare for the opening of our new metal powder manufacturing plant. The expansion of AP&C’s new plant is proceeding according to plan and the new facility is expected to be completed in September,” says René.
The 3D printing industry earnings season continues
As earnings season for the 3D printing industry continues you can read more about the latest financial reports below.
Groupe Gorgé reported revenue of €136.7 million.
Featured image shows an Arcam EBM Isogrid concial Frustrum engine casing for Zenith Tecnica. Photo by Michael Petch.