Materials technology company Umicore today published its trading update for the first quarter of 2012.
Umicore's revenues increased by 11% compared to the first quarter of 2011 despite the economic slowdown that is affecting several of its markets and regions.
Overall margins were negatively impacted by the depreciation and start-up costs related to new investments as well as the effects on recycling margins of lower prices for certain metals. Umicore continued to generate highly positive cash flows. The company initiated several new capital investment projects related to Vision 2015 in early 2012.
Umicore announced that full year recurring EBIT is expected to be in the range of € 370 to € 410 million compared to a record level of € 416 million in 2011. Higher depreciation charges linked to new investments account for most of the expected difference with 2011. Recurring EBITDA is expected to reach between € 520 and € 560 million compared to € 553 million in 2011.
CEO Marc Grynberg commented: "Overall it has been a positive first quarter driven largely by volume effects. I am pleased with the strength of our performance in the face of what remains a challenging and unpredictable economic environment. While we might not exceed the record earnings of last year we continue to develop the business in line with our long term strategy".
