Umicore H1 core profit falls on weak EV battery demand (updated)

Umicore SA

26/07/2024 06:21

(Adds details from statement)
       July 26 (Reuters) - Belgium's Umicore  UMI.BR  missed
expectations for half-year core profit on Friday, after weak
demand for electric vehicles weighed on its battery materials
division.
    Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) dropped 24% to 393 million euros ($426.68
million), falling short of a company-provided consensus of
expectations for 398.5 million.
    Carmakers are flagging a slowdown in demand for electric
vehicles (EVs) as high prices deter buyers. The lower demand
weighs on Umicore's business because it supplies battery
components to EV manufacturers. 
    "In recent months, short- and medium-term growth projections
for the electric vehicles market have been scaled back
substantially, significantly affecting Umicore’s Battery
Materials business," said CEO Bart Sap in a statement. 
    The group said it expected operating profit (EBIT) at the
battery materials unit to be below break-even in 2025 and 2026.
    However, Umicore confirmed its full-year guidance for core
profit. It also proposed an interim dividend of 0.25 euros per
share, to be paid on August 21.
($1=0.9211 euros)

 (Reporting by Olivier Sorgho and Mathias de Rozario; Editing by
Clarence Fernandez)
 ((Olivier.Sorgho@thomsonreuters.com;))