Reuters reported that Belgian metals and specialty materials maker Umicore surprised investors with a bleak outlook for the rest of the year after it reported a H1 profit that was worse than expected.

H1 REBIT fell to EUR 49.5 million below the EUR 47 million average forecast found in a Reuters poll of analysts. The group warned in April that it expected its recurring earnings before interest and taxes would drop to EUR 50 million or below from EUR 215 million in the H1 of 2008.

The company's prediction that the H2 of the year would be no better than the very weak first 6 months surprised investors and sent its stock price tumbling 10%.

Mr Martine Verluyten CFO of Umicore said that "In the Q2 of 2009, we saw an improvement but not enough to be able to talk about an upturn. The Q3 will be slow as usual."

Mr Verluyten said that the market for rechargeable batteries would improve in the H2, while the construction and automobile industries for which it makes car catalysts were stabilizing albeit at low levels.

He said that the Precious Metals Products division would also be helped by restructuring carried out this year.

Umicore makes products for the car, electronics and construction industries and has suffered from their rapid decline. Its Precious Metals Products and Catalysts businesses have suffered badly.

(Sourced from Reuters)