Umicore says that its full year adjusted EBIT will be around €465 million – €490 million with adjusted EBIT in Catalysis and Energy & Surface Technologies below the level of 2019 and adjusted EBIT in Recycling above the level of 2019.
‘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,’ the company said.
According to Umicore, its Q3 2020 showed recovery in the automotive industry, whereby after a contraction of 35% in the first half of 2020, global car production picked up in the third quarter to almost match the levels seen in the same period in 2019. This was driven by a strong and fast rebound of the Chinese car market, the company explained.
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), which its EBIT for Catalysis for the full year of 2020 to be in the range of €130 million to €140 million. In
For the first nine months of 2020, global electric vehicle (EV) sales were up 9%, while in Europe, sales more than doubled in the third quarter compared to the previous year, while in China, EV sales declined by 19% year to date and, on average, remained well below the peak levels reached in the second half of 2018.
‘Notwithstanding the devastating impact of the pandemic, Umicore is on track to post a solid performance in 2020, which demonstrates once more the resilience of our business model as well as the commitment and agility of Umicore’s 11,000 employees,’ said Marc Grynberg, CEO of Umicore. ‘My priority remains to safeguard their health and safety. The long-term trends supporting Umicore’s strategy in clean mobility and recycling are more relevant than ever and I am convinced Umicore will come out of these challenging times well positioned and prepared for future growth.’
This story uses material from Umicore, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.