Half Year Results 2016
Highlights
Revenues were up 1% and recurring EBIT increased by 3% year on year. Strong growth in Automotive Catalysts and Rechargeable Battery Materials more than offset the impact of lower metal prices on the various recycling activities.
- Revenues of € 1.4 billion (+1%)
- Recurring EBITDA of € 259 million (stable versus first half of 2015)
- Recurring EBIT of € 176 million (+3%)
- ROCE of 14.6% (versus 14.4% in the first half of 2015)
- Recurring net profit (Group share) of € 111 million (-15%)
- Recurring EPS of € 1.03 (-15%)
- Net debt at € 298 million corresponding to a gearing ratio of 14.3%
Growth investments in clean mobility and recycling continue and capital expenditures amounted to € 86 million in the first half. Umicore is accelerating its expansion investments for cathode materials for automotive applications and will triple its capacity by 2018. In Recycling, the ramp-up of the 40% capacity expansion in the Hoboken plant has started.
Umicore has reached an agreement to sell its Zinc Chemicals business unit to OpenGate Capital. The transaction is expected to be closed during the second half of 2016, subject to customary regulatory approvals.
Non recurring elements amounted to a charge of € 68 million to EBIT, mainly related to the fine imposed by the French Competition Authority on Umicore in relation to its Building Products activities in France and expected to be paid in the third quarter. Umicore disputes the decision, including the imposed fine and will appeal.
An interim dividend of € 0.60 per share will be paid out in August. In line with the dividend policy, the amount corresponds to half the annual dividend declared for the financial year 2015.
Outlook
Umicore expects full year recurring EBIT to be in the range of € 345 - € 365 million* assuming current metal prices continue to prevail.
*Including the contribution of Zinc Chemicals for the full year
Note: In accordance with IFRS 5 no depreciation charges were recognized for the discontinued operations as from the second half of 2015. All comparisons are made with the first half of 2015, unless mentioned otherwise. All Group KPIs include the discontinued operations.