Arcam AB Reports Strong 2014 Year-End Financials

Not every company involved in additive manufacturing is disappointing the markets this week. Following a warning on Monday by 3D printing giant Stratasys, analysts and investors seem to have soured to stocks within this industry, with shares of Stratasys falling over 30% within a day, and other companies like 3D Systems watching their shares drop close to 10% following the news. Despite this recent negativity, one company seems to be bucking the trend.

This morning Sweden-based Arcam AB (ARCM.ST), a manufacturer of Electron Beam Melting (EBM) systems which are utilized for the additive manufacturing of high grade metal parts, announced their fourth quarter 2014 earnings. Unlike recent disappointments within the market, Arcam’s numbers were very solid, surprising the market to the up-side.

In 2014, total sales for the company increased a staggering 105% over the last year. Additionally, Arcam reported earnings of $0.37 per share, compared to 2013’s $0.12 per share. This increase of over 200% represents a major growth spurt for Arcam as the company sold 42 Electron Beam Manufacturing systems in 2014, compared to only 27 systems in 2013. Some other highlights of the reports are as follows:

• Net income increased to $1.8 million for the quarter
• Operating income increased to $1.6 million for the quarter
• Fourth quarter order intake increased to 21 vs just 10 in Q4 of 2013

The outstanding report can be attributed to both organic growth and growth through various acquisitions. Last February the company acquired metal powder producer AP&C from Raymor Industries in Canada. This has propelled the materials side of Arcam’s business, enabling the company to realize residual revenue by manufacturing and selling metal powders to be used within their EBM systems.

“Titanium powder is an important part of our offering and with this acquisition we have secured access to the best technology for the production of high quality metal powder for our customers,” stated Magnus René, President & CEO of Arcam.

After reporting results for 2014, Arcam now looks forward to additional growth in 2015. The company has already sold 5 new EBM systems in January alone, and the materials side of the business continues to attract new customers as well.

“A stable order book, stable finances and a positive business situation lay a solid foundation for continued strong growth in 2015,” René explained.

It’s interesting to note that, unlike 3D Systems and Stratasys, which produce machines for both industrial and consumer use, Arcam concentrates only on industrial manufacturing. Perhaps the consumer side of the market is underperforming, leading to disappointing earnings reports by the aforementioned companies. Shares of Arcam AB are trading up over 6.5% today in the US market.

Let’s hear your thoughts on Arcam’s latest financials. Are you an investor in their stock? Discuss in the Arcam forum thread on 3DPB.com.