Belgium’s Umicore sees 2021 core revenue beating expectations
The group sees adjusted earnings earlier than curiosity and tax (EBIT) for the yr approaching 1 billion euros ($1.2 billion), considerably increased than anticipated for 2021 and reported final yr.
“We’re in superb form to maintain these ranges of margins and profitability for awhile,” Umicore’s Chief Govt, Marc Grynberg mentioned on a name with analysts.
Umicore’s recycling enterprise has benefited essentially the most from increased costs, significantly for rhodium, with the brand new outlook incorporating on a like-for-like foundation an distinctive extra contribution of roughly 250 million euros in comparison with 2020.
Pushed by elevated market share within the Chinese language and European light-duty gasoline market and the evolution of the gross sales combine in Europe, the place diesel has declined relative to gasoline engines, the catalysis unit is anticipated to greater than double adjusted earnings, the corporate mentioned.
Grynberg additionally anticipated quantity development within the rechargeable battery supplies enterprise because the automotive trade recovers in Europe.
Umicore, which competes with Britain’s Johnson Matthey and Germany’s BASF, mentioned adjusted earnings can be increased within the first half of the yr than within the second and added that the brand new steerage assumes no deterioration in demand within the automotive trade.
Output might be affected within the second half by deliberate upkeep at Hoboken in Belgium, one of many world’s largest valuable metals refining websites, Umicore mentioned.
Analysts additionally mentioned valuable metals worth volatility might have a bearing on earnings.
“It might not be clever to extrapolate the present valuable metals pricing bonanza into the long term future,” KBC mentioned in a word.
Umicore, which is because of publish first quarter outcomes on April 29, reported EBIT at 536 million euros in 2020.
($1 = 0.8310 euros)
(Reporting by Pawel Goraj. Enhancing by Himani Sarkar, Mark Potter and Barbara Lewis)