Umicore: new 2019 outlook misses consensus
(CercleFinance.com) - Belgian metals and specialty materials maker Umicore on Tuesday forecast lower-than-expected operating profit for the current fiscal year, citing slower demand for EVs in China.
The company said it expects full-year 2019 recurrent EBIT to be between 475 million and 525 million euros.
The consensus was looking for 550 million euros in the current year, according to Vara Research data based on 18 analysts' estimates.
The group cited "challenging market conditions" in its key markets and delays of 12 to 18 months in the development of its cathode materials sales.
In China, the demand for EVs has considerably decreased from levels of the second half of 2018, due to a change in subsidy mechanisms, it said.
Its shares tumbled 15% after the statement was made.
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