31 July 2014
Half year results 2014
Umicore’s revenues were slightly down compared to the first half of 2013 as a result of volume growth being offset by strong metal price and currency headwinds. Recurring EBIT was down 15% due to lower metal prices, currency headwinds and higher depreciation charges, partly offset by cost reductions.
- Revenues of € 1.2 billion (down 1%);
- Recurring EBITDA of € 221 million (down 8%);
- Recurring EBIT of € 138 million (down 15%);
- ROCE of 12.5% (versus 14.5% in the first half of 2013);
- Recurring net profit (Group share) of € 95 million (down 17%);
- Recurring EPS of € 0.87 (down 15%).
While taking further actions to improve margins in the different businesses, Umicore remains committed to its longer term growth strategy. Capital expenditures for the period amounted to € 72 million, with the majority of growth investments in Catalysis and Recycling. Research & Development expenditure was € 74 million.
Net cashflow before financing of € 119 million was up year on year. Net debt was stable at € 202 million after returning € 108 million cash to shareholders in the form of dividends and buy-backs. This corresponds to a gearing ratio of 10.6%.
Umicore bought back 1,540,000 of its shares in the first half of the year and currently owns 11,437,302 of its shares. Considering the strong balance sheet of the company and its solid cash flows, the Board has decided to propose the cancellation of 8 million shares, after which the share buy-back programme can continue. This proposal will be submitted to shareholders’ approval during an extraordinary shareholders meeting to be convened in the coming weeks. In line with the dividend policy an interim dividend of € 0.50 per share will be paid out in September. The amount corresponds to half the annual dividend declared for the financial year 2013.
Considering the demand and price trends observed in the key end-markets and assuming current metal prices and exchange rates remain unchanged for the balance of the year, Umicore expects its full year recurring EBIT to be within the upper half of the previously stated range of € 250 – € 280 million.