Johnson Matthey share price rises on strong H1 results

on Nov 21, 2013
Updated: Oct 21, 2019
Listen, Thursday, November 21: Johnson Matthey Plc (LON:JMAT), the world’s largest maker of catalysts to control car emissions, today released its first-half earnings report, which showed double-digit percentage increases in underlying pre-tax profit and sales. The company’s performance in the period has been bolstered by a rise in global production of cars and trucks contributing to increased demand for its catalysts. The global speciality chemicals company, which also refines and recycles platinum group metals, said it increased its interim dividend by 10 percent to 17p.

Boosted by the strong results the Johnson Matthey share price has risen in today’s trading by 3.43 percent to 3,200.00p as of 9:15 UTC.
**Upbeat results**
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Johnson Matthey’s underlying pre-tax profit for the six months to September 30 increased 13 percent to £212.9 million, from £187.9 million in the corresponding period last year. Underlying earnings per share were 84.9p, compared with an EPS of 71.7p a year earlier, an 18 percent increase.

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The company’s overall revenue in the period came in 31 percent higher year-on-year at £6.4 billion, with sales excluding precious metals up 13 percent at nearly £1.49 billion.
Johnson Matthey’s Chief Executive Officer Neil Carson commented in a statement: “Johnson Matthey delivered a strong performance in the first half of 2013/14 driven primarily by good growth in Emission Control Technologies, where global car and truck production increased, and good demand for Process Technologies’ products.”

The company’s key Emission Control Technologies, which makes auto catalysts, performed strongly in the first half, with sales and underlying operating profit up 13 percent and 16 percent respectively. The division benefitted from growth in sales across all regions, including Europe, where demand for catalysts for heavy duty vehicles has risen ahead of a new legislation that comes fully into force from January 1, 2014.

The company’s Process Technologies division posted a 15 percent increase in sales and a 17 percent increase in underlying operating profit, helped by a contribution from Formox, a formaldehyde producer, which Johnson Matthey acquired in March 2013.

**End of long-standing arrangements**

Giving its forecast for the second half of the financial year, Johnson Matthey said that the group’s long-standing arrangements with platinum producer Anglo American Platinum Limited is due to expire on December 31, which is expected to impact profitability in the fiscal fourth quarter. At the same time, the company “should benefit from tighter European truck legislation”, but it was “difficult to assess the extent of the pre-buy in the first half and its effect on volumes in the second half”, Carson said.
“We therefore expect that if the impact of the loss of the Anglo Platinum contracts is excluded, Johnson Matthey’s performance in the second half will be in line with that of the first six months,” The CEO said.
**As of 10:06 UTC buy Johnson Matthey shares at 3,217.00p**
**As of 10:06 UTC sell Johnson Matthey shares at 3,216.00p**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


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