Highlights
Umicore posted a solid full year performance against a backdrop of slowing demand. Revenues grew by 5% year-on-year, primarily due to increased sales volumes in the Catalysis and Recycling business groups. Recurring EBITDA was 5% lower. The economic slowdown negatively impacted product mix and margins, particularly in the Energy Materials and Performance Materials businesses. Recurring EBIT was down 11%, reflecting the above trends as well as higher depreciation costs linked to growth investments.
- Revenues of € 2.4 billion (up 5%);
- Recurring EBITDA of € 524 million (down 5%);
- Recurring EBIT of € 372 million (down 11%);
- ROCE of 16.7% vs 18.6% in 2011;
- Recurring net profit (Group share) of € 275 million (down 10%);
- Recurring EPS of € 2.47 (down 8%).
In response to the evolution in specific end markets, Umicore is adjusting its cost base and production footprint. Charges and provisions related to these measures accounted for the majority of the non-recurring EBIT of € 47 million.
Capital expenditures reached € 253 million while research & development spending was € 181 million. These represent an increase compared to 2011 reflecting the growth initiatives in Catalysis and Recycling.
Cash flows were positive and Umicore further strengthened its capital structure. Net debt was reduced to € 222.5 million, corresponding to a gearing ratio of 11%.
The Board of Directors will propose a gross annual dividend of € 1.00 per share at the Annual General Meeting on 30th April, of which € 0.50 was already paid out as an interim dividend in September 2012. The Board has also decided that the company will continue to buy back its own shares in the course of 2013 within the limits of the existing authorization.
Outlook
Visibility remains limited and there are currently no signs of significant changes to the market conditions that prevailed in the second part of last year. In the absence of any improvements in the end markets served by Umicore, and anticipating a lower contribution from the Recycling activities, it is likely that the recurring EBIT for 2013 will be lower than in 2012. Growth investments will remain at similar levels to 2012.
