Q1 Trading Update
Revenues increased by 1% in the first quarter of 2016 with strong growth in Automotive Catalysts and Rechargeable Battery Materials more than offsetting the impact of lower metal prices on the various recycling activities.
In Catalysis, revenues were well up (+12%) driven by positive volume and product mix effects in Automotive Catalysts. Revenues for Energy & Surface Technologies were down 4% due to the impact of lower cobalt and nickel prices on the revenues of Cobalt & Specialty Materials. This impact was largely offset by revenue growth in Rechargeable Battery Materials. Revenues in Recycling were 8% lower reflecting lower metal prices and subdued demand in several product businesses.
Investments in Umicore’s growth platforms of clean mobility and recycling are on or ahead of schedule and additional capacity expansion investments for Rechargeable Battery Materials are currently being reviewed.
Net debt increased over the quarter as a result of increasing working capital requirements.
Based on the first quarter performance and assuming current market conditions continue to prevail, Umicore expects full year recurring EBIT to be in the range of € 335 million - € 360 million. This reflects strong year-on-year growth in Automotive Catalysts and Rechargeable Battery Materials more than offsetting the impact of lower metal prices on the recycling activities.
Note: All comparisons are made with the first quarter of 2015, unless mentioned otherwise.