Johnson Matthey share price: Group updates on Q1 trading
Johnson Matthey (LON:JMAT) has updated investors on its first-quarter performance this morning.
**Highlights from Johnson Matthey’s statement:**
Overview of Trading
Group sales for the continuing businesses increased by 6% to £822 million (up 2% at constant rates), supported by continued good demand in Emission Control Technologies and an increasing contribution from New Businesses. Sales in both Process Technologies and Precious Metal Products were stable although markets in both divisions remained challenging. Demand in Fine Chemicals’ continuing businesses1 was steady.
Underlying3 profit before tax for the quarter was supported by actions taken to reduce costs in the last financial year. Our outlook for the full year at constant rates is unchanged. If current exchange rates prevail for the remainder of 2016/17, the group’s reported results will further benefit from a positive translational impact.
In line with our preliminary results announcement on 2nd June 2016, we continue to expect the group’s performance in 2016/17 to be ahead of 2015/16, albeit weighted towards the second half.
The underlying performance of the group for 2016/17 at constant rates remains in line with our previous expectations. However, the full year positive translational impact from exchange rates at 2nd June 2016 of approximately £15 million has increased substantially recently. If exchange rates remain at current levels for the remainder of 2016/17, the positive translational impact to full year underlying operating profit would increase by around a further £25 million to a total of approximately £40 million.
It is too early to predict the exact consequences of the UK’s vote to leave the EU. However, the board currently believes that this will not have a long term material impact on Johnson Matthey and we continue to focus on executing our strategy for the group. We will continue to grow the business by investing in R&D, our manufacturing facilities and our employees, whilst improving our health and safety performance and delivering the very best products and service for our customers.
As of 07:18 BST, Wednesday, 20 July, Johnson Matthey PLC share price is 3,147.00p.