Belgium’s Umicore expects the thriving European electric vehicle market to boost its battery business in 2021 as the company forecast on Thursday “substantial” group-level growth compared to last year, ETAuto.com reports.
The maker of catalytic converters and battery materials for carmakers said volume growth in its battery materials segment in 2021 should “more than offset” the overcapacity and pricing pressures that weighed on it last year.
Chief Executive Marc Grynberg told analysts Umicore was well positioned to benefit from Europe’s electric vehicle push.
The market share of electric vehicles based on new car registrations increased to 10.5% in the European Union in 2020 from 3% the previous year, according to data from the European Automobile Manufacturers’ Association.
KBC analysts have tipped the growing EV market as a potential long-term growth driver for Umicore, which is also active in the energy and recycling sectors.
The group, which competes with Britain’s Johnson Matthey and Germany’s BASF, added that it expected to increase earnings in all businesses this year.
The pandemic-hit auto industry showed signs of recovery in the second half of last year, led by China, where car sales subsequently surged 30% in January.
This development should boost results, especially in Umicore’s catalysis business, it said.
The company added its recycling business should also benefit strongly from high precious metal prices.
Preparing for CEO succession
Since Marc Grynberg took over as CEO in 2008, Umicore has continued to grow fast while creating significant value for its stakeholders. He has turned the company into a global leader in clean mobility materials and recycling. In 2020, the company successfully completed its Horizon 2020 strategy and reached new heights. Everything is in place for Umicore to keep thriving – talented teams, a promising innovation pipeline and highly supportive megatrends – and the Supervisory Board and Marc Grynberg consider this to be an auspicious moment to start preparation for the CEO succession. The Supervisory Board will take the time to identify a successor who will build on these strong fundamentals and bring Umicore to its next stage of development.
Thomas Leysen, Chairman of the Supervisory Board commented : “Marc is Umicore’s longest serving CEO to date and, since 2008, he has shaped Umicore’s strategy with foresight and determination. I know Marc as a leader who is driven by values and cares for people, which has earned him the respect of all Umicore’s stakeholders. I have always enjoyed working with Marc and I am glad that Umicore can continue to count on his full engagement until a worthy successor is appointed and takes over.”
Marc Grynberg, CEO, commented : “I am proud of the manner in which we have transformed Umicore over the past twelve years and prepared this wonderful company for further growth. Our success would not have been possible without the support of Thomas Leysen, the Supervisory Board and the talent, dedication and hard work of my Management Board and our 11,000 colleagues. I will lead Umicore with as much engagement, energy and passion as ever until my successor is in place and I will be pleased to assist the Board with a smooth transition in due course.”
The company reported adjusted earnings before interest and tax (EBIT) at 536 million euros ($650 million) in 2020, up 5% from a year earlier and above consensus of 527 million euros.
