Strong first quarter with good momentum continuing
The year has started well, with a continuation of the good demand seen in the second half of 2020/21. In the first quarter we delivered strong sales-1 growth of 63% year-on-year, primarily driven by increased demand in
In
Automotive and truck OEMs are experiencing temporary supply chain disruption from shortages of semi-conductor chips, which affected production volumes in the period. Underlying vehicle demand remains strong and, whilst we anticipate continued volatility in the supply chain, we are confident that
Efficient Natural Resources
Efficient Natural Resources had a strong start to the year, with sales up significantly in the first quarter compared to last year. This was primarily driven by PGM Services which benefited from volatile and higher average precious metal prices. Catalyst Technologies continues to see good momentum, with first quarter sales only moderately below the fourth quarter of the prior year, which is a seasonally strong period for orders. In the quarter, we signed one new licence and have a strong pipeline of projects.
Health
In Health, we expect strong growth for the full year. Sales for the first quarter lapped a strong quarter last year, and were also impacted by the phasing of customer orders in the current year. We continue to benefit from multi-year supply agreements with both our generics and innovators customers. As previously announced, we are conducting a strategic review of our Health business.
Hydrogen, Battery Materials and Value Businesses-2
The world's adoption of hydrogen as an energy vector is accelerating, translating to faster than expected commercial prospects for our hydrogen growth businesses. In hydrogen fuel cells we continue to build our customer pipeline and recently signed a new agreement for the supply of membrane electrode assemblies (MEAs), mainly for commercial vehicles, with Unilia/REFIRE. We are also progressing a number of other key customer agreements for the supply of catalyst coated membranes (CCMs) for commercial vehicle and truck applications. We have begun work on significantly expanding our manufacturing capability in the
In green hydrogen production, testing with customers is proceeding well and we continue to expect first commercial sales from this business in 2022. Given the strong progress we have made with customers and the rapidly developing market, the recent acquisition-3 of assets from Oxis Energy will enable us to further expand our manufacturing capability in the
In Battery Materials, commercialisation of our portfolio of eLNO high nickel cathode materials continues at pace and construction of our commercial plant remains on track.
In Value Businesses, sales grew reflecting a recovery in demand following COVID-19.
Outlook for the year ending
Given the strength we are currently seeing in our end markets, we now expect at least mid teens growth in underlying operating4 performance at constant metal prices5 and constant currency.
At current foreign exchange rates6, translational foreign exchange movements for the year ending
Since our preliminary full year results announcement for 2020/21 at the end of May, precious metal prices have on average declined. Should metal prices remain at current levels7 for the rest of this year, we expect a full year net benefit of c.
Change to reporting segments
As mentioned in our preliminary full year results announcement in May, we are making small changes to our reporting segments for the year ending
Contact:
Tel: 020 7269 8241
(C) 2021 Electronic News Publishing, source