Arcam reports continued growth and investments in challenging market
October 20, 2017
In an interim report for the period January-September 2017, Arcam Group, Mölndal, Sweden, has reported continued growth despite a challenging market situation, with net sales up 31%. The company’s sales increased to SEK 575.4 million compared to SEK 440.2 million in the same period 2016. Operating income amounted to SEK -29.4 million compared to SEK -0.7 million in 2016.
In the first nine months of 2017, Arcam reported that it delivered 42 of its Electron Bean Melting (EBM) Additive Manufacturing systems, a significant rise from the 35 delivered in same period in 2016. EBM system deliveries were lower in the third quarter than in the first half due to logistical challenges for some customers in Asia, the report stated. In total, Arcam reported it had delivered 57 systems in the past twelve months.
During the period Arcam received 38 new orders, compared with 24 in the first nine months of 2016. The growth was due in large extent to the interest from its largest shareholder GE, which ordered 17 new EBM systems to be used for test and evaluation.
According to the report, Arcam has seen demand for its EBM systems driven by increasing interest in metal Additive Manufacturing from the orthopaedic and aerospace industries, which are now moving into production with AM. Continuing growth in metal powder demand was also reported, with Arcam stating that it continues to secure long-term supply agreements with important customers in the orthopaedic and aerospace industries.
However, the company stated that some customers are still hesitant to launch new manufacturing projects, in particular in the aerospace industry. Arcam believes that increased product maturity and new application areas will further drive production interest.
Arcam reported that it had continued to build its organisation throughout the period and now employs a total of 441, compared to 328 one year ago. This was helped by the opening of a new metal powder manufacturing plant at Arcam-owned AP&C, which offers additional production capacity of 750 tons, expected to reach 1,250 tons at full capacity.
The company continued to invest in its technology and market presence. In this period, Arcam’s Board of Directors reportedly decided on a rights issue which will provide the group with SEK 986 million. The rights issue will be carried out in October and November 2017.
DiSanto Technology Inc. (DTI), Arcam’s medical device manufacturing business, was said to be increasingly active on the market and continued to grow with new customers and projects for additively manufactured medical implants. However, the business was reportedly burdened by weak sales for implants made with traditional technology.
