Umicore posts profit miss as soft EV demand, falling metal prices weigh (updated)

Umicore SA

14/02/2025 06:59

(Adds context in paragraph 3, CEO quote in paragraph 4, EBITDA
number and outlook in paragraph 5, dividend in paragraph 6)
       Feb 14 (Reuters) - Metals recycling and battery
materials group Umicore  UMI.BR  reported a smaller than
expected annual profit on Friday, weighed down by declining
metal prices and muted growth in demand for electric vehicles.
    Umicore, which supplies battery materials for automakers,
reported an adjusted net profit of 255 million euros ($267
million) for 2024, while analysts were expecting it to reach 266
million euros, a poll compiled by Vara Research showed.
    The European automotive market is undergoing a complicated
transition amid slower than expected EV sales growth, as
carmakers oppose measures meant to encourage consumers to
abandon combustion engines, such as CO2 emission rules coming
into force this year.
    "2024 has been a sobering and intense year for Umicore,
marked by significant headwinds including a slowdown in EV
growth, multiple challenges for the European industrial sector,
and rising geopolitical tensions," CEO Bart Sap said in a
statement.
    For 2025, Umicore sees adjusted earnings before interest,
taxes, depreciation and amortization in a range of 720 million
to 780 million euros, compared to 763 million euros last year.
    The Belgium-based company said it would propose a gross
dividend of 50 euro cents per share for 2024 at its annual
general meeting on April 24.
($1 = 0.9565 euros)

 (Reporting by Tristan Veyet in Gdansk, editing by Milla Nissi)
 ((Tristan.Chabba@thomsonreuters.com;))