Profits rev up for chemicals giant Johnson Matthey
A RECOVERY in the motor industry helped speciality chemical group Johnson Matthey boost profits and forecast a better first half than a year ago.
The FTSE 100 group said higher demand for products contributed to a 19 per cent rise in first-quarter profit to £98million in the three months to the end of June. Its shares rose 78p to 2016p.
It said the outlook for the second quarter of 2011/12 was good and it expected to improve on the first half of 2010/11.
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Chairman Sir John Banham said: “We anticipate our good start to 2011/12 will be maintained throughout the year.”
Johnson’s key environmental technology arm increased sales by 14 per cent in the quarter and improved operating profit. Strong demand for heavy duty diesel catalysts offset lower profit from light duty catalysts, which were hit by disruption from the Japanese earthquake and tsunami and rising commodity prices.
We anticipate our good start to 2011/12 will be maintained throughout the year.
The group’s precious metal products division benefited from strong demand and higher metal prices, which contributed to “significantly higher” profits.
