Why invest in Umicore
Umicore is a global materials technology and recycling Group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy makes a real difference. Its activities are organized in three business groups: Catalysis, Energy & Surface Technologies and Recycling. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological development and essential to everyday life.
Solid performance in 2020 despite unprecedented and challenging market context
Umicore expects its full year adjusted EBIT to be in the range of € 465 million to € 490 million with adjusted EBIT in Catalysis and Energy & Surface Technologies well below the level of 2019 and adjusted EBIT in Recycling well above the level of 2019, as previously communicated. This outlook statement is made under the assumption that the ongoing spread of the COVID-19 pandemic, in particular in Europe and North America, will not lead to major new disruptions in operations or market demand.
Based on current market trends, Umicore now expects global car production to be down by approximately 20% for the full year (compared to its previous assumption of a 25% decrease). In this scenario, Umicore expects adjusted EBIT for Catalysis for the full year of 2020 to be in the range of € 130 million to € 140 million. In 2021, the business group is expected to continue to benefit from its strong market position in gasoline LDV applications, particularly in Europe and China, supplemented by the initial impact from China VI legislation for heavy-duty diesel applications and cost savings resulting from the cost reduction measures carried out in 2020.
Umicore expects adjusted EBIT for Energy & Surface Technologies for the full year 2020 to be in the range of € 70 million to € 75 million. For next year we expect sales volumes in cathode materials to benefit from the growing penetration rate of electric vehicles and the launch of new platforms for which Umicore’s materials have been qualified. However, as this business continues to be driven by technology innovation and comes at a high level of fixed costs, it will take more time in the current market context to achieve the desired scale effects. In addition, the unfavourable pricing environment is expected to persist in China due to the excess capacity in the industry.
Considering the planned 4-weeks maintenance shutdown in the Precious Metals Refining business unit, which was completed over the summer, and seasonality effects in Jewelry and Industrial Metals, Umicore expects adjusted EBIT for Recycling in 2020 to be in the range of € 320 million to € 330 million. The business group’s earnings are expected to continue to benefit next year from a favorable supply environment and metal prices hedged at attractive levels while remaining exposed to the price evolution of unhedgeable metals which is difficult to predict.
The Corporate segment is expected to reflect a much lower contribution from Element Six Abrasives which saw a significant contraction in its oil and gas drilling business as well as in the demand for precision tooling products used in automotive and aerospace applications.
For more information on Umicore’s Q3 performance and the related market context, we refer you to the Update published in November.
Reasons to invest in Umicore
We are leaders in the markets we serve thanks to our metal know-how, innovative technology and a deep understanding of our customers’ needs. Additionally, our closed loop business model gives us a competitive edge.
We have developed unique positions in recycling and in materials that enable clean mobility.
We have a clear growth path based on providing solutions to the key megatrends of resource scarcity, the need for cleaner air and drive towards electrified transportation. And we’ve made significant investments to ensure that we capture these opportunities.
We are a leader in sustainability: through our products and services and through the way we run our operations.
We deliver value for our shareholders by consistently providing superior returns over the long term.
Who we are
|Share price*||€ 41.91|
|Outstanding share number*||246,400,000|
|Market Capitalization*||€ 10.3 billion|
|High/low 01/01/2020-30/06/2020||€ 27.2 - € 49.28|
|*closing at 30/06/2020|
H1 2020 key figures
|Million €||H1 2019||H1 2020||Difference|
|Revenues (excluding metal)||1,634||1,564||-4%|
|Adjusted net profit (Group share)||151||148||-2%|
|Return on capital employed (ROCE)||12.3%||10.9%|
|Adjusted EPS (in €)||0.63||0.62|
|Dividend payout (in €)*||0.375||0|
|Net debt, end of period||1,059||1,349||27%|
|Net debt / LTM Adj. EBITDA||1.49x||1.75x|
|Workforce, end of period (fully consolidated)||10,725||10,938||7%|
* On 30 April 2020 the ordinary shareholders’ meeting approved the proposal of Umicore’s Supervisory Board to reduce the dividend in respect of the full year 2019 to € 0.375 per share, which corresponded to the amount of the interim dividend of € 0.375 per share which was already paid out in the second half of 2019. As a result of this decision, there was no dividend payout in the first half of 2020.
Horizon 2020 - Economic objectives by 2020
Horizon 2020 - Social and environmental objectives