Imerys Net Income Sinks 40% in 2020

Imerys SA of France has reported a 40% decrease in net income for 2020, to €167.0 million (US$202.3 million), on revenue 13% lower at €3.8 billion (US$4.6 billion). The company reports that a recovery in most end markets gained pace towards the end of the year. However, both of Imerys’ business groups reported lower sales in 2020. High Temperature Materials and Solutions’ revenues fell 14.3% to €1.65 billion (US$2.0 billion) and Performance Minerals’ revenues were 9.8% lower at €2.18 billion (US$2.64 billion).

Alessandro Dazza, Imerys’ CEO, commented, “We effectively delivered on our cost-savings action plan and completed the Connect & Shape transformation program, which allowed us to bring our operating margin in the second half of the year back to pre-COVID 19 crisis levels and generate a strong cash flow.”

“Though we see the economic recovery strengthening overall, we shall remain focused on optimizing our operating performance and market reach. Meanwhile, supported by robust cash generation and a solid financial position, Imerys will continue to invest in targeted capacity expansions and bolt-on acquisitions to sustain future growth and value creation.”

In the Performance Minerals segment, an investment of €35 Million (US$42.4 million) in Switzerland to double production capacity for high-purity synthetic graphite used in lithium-ion batteries. Imerys notes that this investment is the first of a series of capacity expansion projects dedicated to the electric vehicle market worldwide. As part of its portfolio management, the company also divested its kaolin operations located in Pittong, Australia.

Revenues generated by Imerys’ Performance Minerals segment fell 7.7 % to like-for-like in 2020, though showing a sequential positive trend in the second part of the year. On a reported basis, revenue was down 9.8% after a negative currency effect. The segment generated 2020 EBITDA of €429.8 million (US$520.8 million) on revenue of €2.18 billion (US$2.64 billion).

Imerys’ High Temperature Materials & Solutions segment generated 2020 EBITDA of €188.4 million (US$228.3 million) on revenue of €1.65 billion (US$2.0 billion).

Revenue in High Temperature Solutions decreased by 15.1%, to €632.1 million (US$765.0 million), though the business started to benefit from underlying markets recovery in the fourth quarter. Revenue in the Refractory, Abrasives & Construction business area was down 13.6% at €1.05 billion (US$1.27 billion). During the fourth quarter, the refractory and abrasives markets recovered progressively, particularly in Europe, driven by iron & steel and automotive.

Volume 35, Issue 04

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