Carbon fibre road wheel manufacturer Carbon Revolution has registered growth in production and is aiming for new heights as its first mega-line mass production line is close to completion.
The Geelong, Victoria company, which experienced market dislocation during the Covid-19 crisis as car manufacturing slowed or even shut down, today reported revenue above $40 million for the first time and a 15 percent rise in the number of active wheel programmes underway with its OEM customers.
Revenue was up 15.5 percent from the previous year driven by strong sales from three new wheel programmes – one from Chevrolet for the C8 Corvette Z06/Z07 and the Ferrari 296GTB and 812 Competizione – ramped up.
The company achieved a 6.7 percent rise in the average price per wheel to $2,695, positive margin of $402 per wheel and new record output levels were hit with an annual production rate of 25,000 achieved in June this year.
CEO Jake Dingle said: “These results highlight the increasing customer demands for our wheels, as evidenced by the record number of active programmes and revenue above $40 million for the first time.
“With the mega-line development progressing towards production the company is in its strongest position to deliver on its potential and purpose.”
While Carbon Revolution has sold 60,000 wheels to date, it is close to completing its first mega-line which will further automate and accelerate production and improve quality. (see video below).
The mega-line investment was based on four new wheel programmes the company is chasing.
During FY22, the first of the four programmes was awarded, with production to begin in the second half FY23, and ramp up over 12 months.
The company ended the year with a cash balance of $22.7 million, and Carbon Revolution has now been informed by the federal government that a $12 million Modern Manufacturing Initiative grant will go ahead.
“We have growing demand for our wheels and a clear pathway to profitability.”
Late this morning Carbon Revolution’s share price was down 4.1 percent to 30 cents.
Media: Carbon Revolution
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