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Umicore 2019 earnings to be hit by car industry slowdown

Auto News - Published on Tue, 12 Feb 2019

Image Source: ET Auto
Reuters quoted Belgium's Umicore as saying that its 2019 earnings growth would to be hit by subdued demand in the automotive and consumer electronics sectors, higher depreciation charges and startup costs. The firm, one of the world's largest cobalt refiners, has invested heavily in battery material production to cash in on growing demand for electric vehicles, but its shares have been hit by a slowdown in car output and falling cobalt prices. The company said that "The long-term fundamentals of our business are strong and we are excited about our prospects, notwithstanding current challenges in the macroeconomic environment impacting in particular the automotive sector.”

Umicore reported 2019 recurring earnings before interest and tax (REBIT) of EUR 514 million for 2018, broadly in line with the EUR 512.5 million forecast in a poll conducted for the firm. This meant it reached its target for 2020 of doubling REBIT from the 2014 base to EUR 500 million two years early. The company said it continued to see upside potential of 35 to 45 percent compared with its original 2020 target.

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Posted By : Rabi Wangkhem on Tue, 12 Feb 2019
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