Trading update Q1 2017
Revenues from continued operations increased 13%, reflecting strong growth particularly in activities related to clean mobility.
In Catalysis, revenues increased by 9%, largely driven by growth in sales of automotive catalysts for both light-duty vehicles and heavy-duty diesel applications. The 29% revenue increase in Energy & Surface Technologies reflected substantial growth in sales of cathode materials used in rechargeable batteries for the transportation segment and – to a lesser extent – higher demand and prices in the cobalt and nickel related businesses. Revenues in Recycling increased by 4% with growth in all activities.
Umicore’s strategic growth investments in clean mobility materials and recycling are progressing according to plan. The expansion to triple capacity for cathode materials in China and Korea by the end of 2018 is underway and the new capacity will gradually come on stream starting in the second half of 2017.
Umicore has reached a resolution with BASF and Argonne over NMC patent infringement claims.
Umicore has successfully completed a € 330 million private debt placement, thereby diversifying its sources of debt financing and extending the duration of its debt profile.
Umicore expects full year recurring EBIT to be in a range of € 370 million to € 400 million assuming current market conditions continue to prevail. Excluding discontinued operations, this equates to a range of € 355 million to € 385 million and would represent an increase of 11% to 20% compared to 2016.
Note: All comparisons are made with the first quarter of 2016, unless mentioned otherwise.