Umicore reports exceptionally strong performance in the first half of 2021

Strong performance across business groups driving record results

Umicore posted a very strong performance in the first half of 2021 reflecting the sharp recovery of demand from the automotive industry for its clean mobility materials after the severe downturn caused by the COVID-19 pandemic last year, as well as a strong boost from record precious metal prices.

Umicore's revenues for the first 6 months amounted to EUR 2.1 billion (+37% year on year) and adjusted EBIT amounted to EUR 625 million, up 157% compared to the first half of 2020. Adjusted EBITDA doubled to EUR 762 million, which combined with a temporary EUR 250 million reduction in working capital, resulted in record free cashflows and a reduction of EUR 0.4 billion in net financial debt since the end of 2020 to just over EUR 1 billion. Adjusted net profit for the Group close to tripled to EUR 428 million. The Supervisory Board decided to pay an interim dividend of EUR 0.25 per share, as fixed by the amended dividend policy which was announced in February.

Outlook

Based on the strong performance in the first half of the year and assuming precious metal prices remain around current levels for the remainder of the year, Umicore expects its adjusted EBIT for the full year 2021 to slightly exceed EUR 1 billion. This compares to the guidance provided at the end of April of adjusted EBIT for 2021 expected to approach EUR 1 billion. This full year outlook incorporates an exceptional additional contribution of roughly EUR 250 million compared to 2020 linked to higher current precious metal prices. As previously announced, the group adjusted EBIT in the second half of the year is expected to be lower than in the first half, which benefited from the spike in precious metal prices. The outlook for the second half includes the effect of the planned maintenance shutdown in Hoboken and the currently anticipated impact of the semi-conductor shortage on car production.

In Catalysis, Umicore expects to continue outperforming the automotive market and more than double adjusted EBIT for the full year 2021 compared to 2020[1]. Revenues and earnings in the second half of the year will be impacted by more subdued demand in the automotive industry due to the ongoing shortage in the global supply of semiconductors. In addition, heavy-duty diesel catalyst sales volumes are expected to be impacted by the phase out of catalysts compliant with the China V legislation.

In Energy & Surface Technologies, adjusted EBIT is expected to grow meaningfully for the full year 2021 and may slightly exceed current market consensus[2]. However, the stronger than anticipated performance in Cobalt & Specialty Materials and Metal Deposition Solutions in the first half is expected to normalize and should not be extrapolated to the second half. As announced in April, Umicore expects substantial growth in sales volumes of cathode materials in 2021 to more than compensate a EUR 50 million increase in fixed costs.

In Recycling, full year 2021 adjusted EBIT is expected to reach exceptional levels, well above prior year[3], driven by robust operations, strong growth across business units and regions and assuming that current precious metal prices prevail throughout the remainder of the year. The first half performance should not be extrapolated to the second half as it included a spike in precious metal prices and the availability of the smelter in Hoboken will be lower due to the planned maintenance shutdown starting mid-September.

Contact:

Marjolein Scheers

Tel: +32 2 227 71 47

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