Umicore upgrades 2020 guidance
Umicore upgrades its 2020 guidance and now expects adjusted EBIT to be in the region of € 530 million for the full year. This compares with the previous expectation of € 465 million to € 490 million communicated on 2 November 2020 and reflects a stronger than anticipated performance in November and December in Catalysis and Recycling. In Energy & Surface Technologies performance is expected to be near the top end of the range communicated on 2 November 2020.
In Catalysis, the recovery of the automotive industry continued in November and was sharper than expected. Activity levels are also very high in December, contrary to usual seasonality effects. This recovery is most pronounced in China and Europe and includes a reduction of the backlog which was caused by production disruptions in the first half of the year. Umicore continues to benefit from its strong market position in gasoline applications, in particular in China.
In Recycling, operational performance in the Precious Metals Refining and Jewelry and Industrial Metals business units is also stronger than anticipated and results are supported by increasing precious metal prices. In particular the price of rhodium has soared to record highs from the already high levels seen at the beginning of November. The business unit Precious Metals Management benefits both from higher metal prices and high metal price volatility, which continue to boost the contribution of its trading activity.
In Energy & Surface Technologies, performance is developing in line with the expectations communicated at the beginning of November.
“I am proud of Umicore’s performance in today’s challenging and very volatile context. Visibility remains extremely limited and we will continue to react to short-term fluctuations in end-market demand with agility while keeping our focus on our long-term strategy.”
Marc Grynberg, CEO of Umicore