in Additive manufacturing

#Arcam: Bullish tone at first ever #CMD

Arcam AB LogotypeLast Wednesday (November 5th), Swedish additive manufacturing company Arcam hosted its first ever capital markets day in Connecticut, USA.

In an interview with Swedish news agency Direkt, CEO Magnus René said that interest from American investors was high and he believes that several foreign analysts will initiate coverage on Arcam in the near future. “We had around 50 attendees, both professional investors, private individuals and well-known equity research firms“.

The CMD was held at DiSantos new facilities. DiSanto was acquired by Arcam for around SEK 110m during the fall and manufactures orthopedic implants. By acquiring a customer, Arcam took the step from being an 3D printing equipment manufacturer towards a more diversified business model.

Says CEO René: “We have four machines at DiSanto today but the facility has space for 40. We want to grow significantly“.

On top of DiSanto, Arcam also acquired AP&C, a producer of metal powder, which currently is the company third business area. Both subsidiaries will continue as separate companies and will not be integrated, according to René.

The powder business grows significantly. Around 40% of AP&C’s sales are related to EBM-customers, 40% come from other customers within additive manufacturing. The whole business grows very well.”

The fourth quarter is usual the strongest for Arcam in terms of order intake. Year-to-date the company has recorded orders for 25 of its EBM-system. During 2013, Arcam sold 27 systems in total. “On a rolling 12-months basis, order intake is up around 30% over the first 9-months“.

Like I have stated in the past, we are well positioned to receive a volume order in the near future

It seems as if the future looks bright indeed for Swedish Arcam and also the conditions for the additive manufacturing sector as a whole are encouraging. At the end of October, analyst firm Gartner issued a report saying that it predicts 3D printer shipments will grow by 100 percent every year until 2018, with the increase driven by falling costs and enterprises integrating the devices into their manufacturing processes.

It seems like a good time to join the next industrial revolution.

Nordic Investor

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