(ABM FN) Umicore expects profitability to be slightly lower for 2020 than in 2019. This was revealed in a message from the company on Monday.
“Despite the devastating effects of the pandemic, Umicore is on track to deliver a strong performance in 2020. The long-term trends on which Umicore’s clean mobility and recycling strategy is based are more relevant than ever and I am convinced that after these challenging times Umicore will be well positioned and prepared for future growth, ”CEO Marc Grynberg said Monday.
The third quarter showed a strong recovery in the automotive industry. “After contracting by 35 percent in the first half of 2020, global car production picked up again in the third quarter and nearly matched the levels seen in the same period in 2019.” The Chinese car market in particular did well, Umicore said.
Umicore expects adjusted EBIT for 2020 from EUR 465 million to EUR 490 million. In 2019 that was 509 million euros.
The adjusted EBIT of Catalysis and Energy & Surface Technologies will be well below the level of 2019 and the adjusted EBIT of Recycling will be well above the level of 2019.
For Catalysis Umicore expects an adjusted EBIT of EUR 130 million to EUR 140 million. In 2021, Catalysis is expected to continue to benefit from its strong market position in gasoline vehicle applications, especially in Europe and China, complemented by the initial impact of the China VI heavy diesel applications legislation and cost savings from the measures taken in 2020, foresees Umicore.
Umicore previously announced that it would streamline the Cobalt & Specialty Materials division. These adjustments are expected to result in approximately 55 million euros in one-off adjustments to EBIT, the vast majority of which are of a non-cash nature.
“These forecasts are made on the assumption that the current spread of the COVID-19 pandemic, particularly in Europe and North America, will not give rise to new business disruptions or market demand,” Umicore warned.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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