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CONTRACTS with Ferrari and GM’s Corvette C8 have bolstered income for the Geelong-based advanced manufacturer of carbon-fibre wheels to a record quarterly $14.8 million, up 80 per cent on the previous quarter.

It has lifted revenue for Carbon Revolution Ltd the 2022 financial year to more than $40 million for the first time, with a strong outlook that the company said was tempered only by global supply chain constraints.

Carbon Revolution (CBR) sold 4776 wheels in the June quarter, up 48 per cent on the previous corresponding period and up 63 per cent on the March quarter. Sales for the financial year were about 25,000 wheels.

The increase in the June quarter was attributed to a ramp up of the Corvette program – for the C8 Z06 and Z07 – and “strong and consistent demand” from Ferrari which buys the wheels for its 296 GTB and 812 Competizione.

The company said average pricing improved by $206 a wheel over the previous quarter which helped to offset input cost increases.

CBR expects significant production increases with the completion of its Mega-line project which in May was the recipient of a Commonwealth Manufacturing Initiative (MMI) grant of $12 million.

“The grant helps Carbon Revolution develop wheels to meet the future demand for our range-expanding carbon-fibre wheel technology in the rapidly expanding global electric vehicle market,” CBR said in a statement to the Australian Securities Exchange (ASX).

“Grant documentation has not yet been received but the company is pursuing payment of the first $6 million tranche of the grant during FY23.”

CBR said the new federal government was “undertaking a review” of all funding approved by the previous government “and we are awaiting confirmation of the next steps from the department.”

“As Carbon Revolution is an advanced manufacturing business based in regional Australia, the company feels this MMI grant is aligned with the Albanese government pledge to invest $1 billion in advanced manufacturing and therefore is confident of a positive outcome.”

The company said that its Mega-line project is expected to be completed and the first production wheels made in the third quarter of this financial year.

CBR conducted a roadshow in the June quarter across North America and Europe, engaging with vehicle manufacturers including EV makers.

It said that OEMs – particularly EV makers – were looking for new technologies that delivered benefits in noise, vibration and harshness and weight savings to improve vehicle range.

“Following this roadshow, the company is experiencing record levels of detailed customer inquiries and program quoting,” it said.

CBR said it has 15 active programs, including six in production, with two received in the last quarter. These include the Ford GT500 and GT programs.

Although it didn’t specify the OEMs, the company said that it expects two programs – one for its first premium SUV – to start production this financial year.

“Combined, the two programs entering production are expected to deliver stronger volumes as compared with those concluding production,” it said.

Other programs include one entering production this quarter and which will ramp up in the next 12 months, and three other programs include EV SUV and EV ute programs for which the wheel design and sourcing process is underway.

In its outlook, CBR said it had increasing customer demand for its wheels – as evident by the record number of active programs – and its Mega-line development progressing to production and said it was “well positioned to deliver on its potential and purpose.”

By Neil Dowling

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