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April 22 (Reuters) - Belgian materials technology and
recycling group Umicore expects adjusted earnings
before interest and tax (EBIT) this year to beat market
expectations, helped by higher precious metal prices and strong
demand, it said on Thursday.
The group said it was off to a strong start to 2021 and now
sees earnings for the year approaching 1 billion euros ($1.2
billion), thanks to higher rhodium and palladium prices and
robust demand across businesses.
That is far above analysts' consensus forecast of 686
million euros, according to a poll on the company's website.
"In Rechargeable Battery Materials, volume growth is
materializing as anticipated with particularly strong traction
in Europe, resulting in a more favorable mix," the company said,
forecasting adjusted group profit would be higher in the first
half of the year than in the second.
It also expects its catalysis business to more than double
profits, and "exceptional earnings" in its recycling division
due to the company's ability to process growing volumes of
materials rich in complex platinum group metals (PGMs).
The new guidance also assumes no deterioration in demand in
the automotive industry due, for instance, to the pandemic,
Umicore said.
In February, the maker of catalytic converters and battery
materials for carmakers, said it anticipated a boost from
electric vehicles to drive "substantial" group-level growth.
The group, which competes with Britain's Johnson Matthey
and Germany's BASF reported EBIT at 536
million euros in 2020, up 5% from a year earlier.
Umicore is due to publish first quarter results on April 29.
($1 = 0.8310 euros)
(Reporting by Pawel Goraj. Editing by Himani Sarkar and Mark
Potter)
Johnson Matthey (JMAT)
