Interim Management Statement

RNS Number : 5499Z

Johnson Matthey PLC

22 July 2008

 



For release at 7.00 am on Tuesday 22nd July 2008

Johnson Matthey Plc

 Interim Management Statement

Commenting on current trading at the Annual General Meeting to be held at 11.00 a.m. today, Sir John Banham, Chairman of Johnson Matthey, will provide the following statement:

 'Johnson Matthey has made a strong start to the new financial year. In the first quarter to 30th June 2008 revenues grew by 33%, sales excluding the value of precious metals increased by 12%, and profit before tax and amortisation of acquired intangibles was 22% higher than in the same period last year. 

Environmental Technologies Division's sales and profits were well ahead of last year. Autocatalyst sales continue to grow strongly in Asia, where the group is gaining share, although sales have fallen in North America reflecting a drop in the overall demand for cars and trucks.  Argillon, which was acquired in February 2008, has made an encouraging initial contribution as demand for catalysts for the reduction of oxides of nitrogen (NOx) has grown across a range of markets.  Process Technologies' operating profit was well ahead with the very high price of oil increasing demand for catalysts for hydrogen and methanol.  

Precious Metal Products Division was also well ahead in the quarter. Our marketing and distribution business achieved good sales growth benefiting from the high prices of platinum group metals (pgms). The division's manufacturing businesses have also continued to perform well with good demand for fabricated pgm products.  Fine Chemicals & Catalysts Division has made a good start to the new year with growing volumes of catalyst products and increased sales of fine chemicals.  

Borrowings and interest were higher than in the first quarter of 2007/08 mainly as a result of the acquisition of Argillon. On 12th June 2008 we agreed a further £100 million long term loan facility from the European Investment Bank which is provided to support the group's increasing investment in research and development.

The second quarter has begun well and the group has a strong order book.  We are benefiting from increasing global demand for products which reduce pollution and protect the environment.  Despite increasingly difficult macroeconomic conditions we expect profit before tax for the half year to 30th September 2008 to be well ahead of the same period last year.'

Enquiries: Ian Godwin Director, IR and Corporate Communications 020 7269 8410 John Sheldrick Group Finance Director 020 7269 8408 Howard Lee The HeadLand Consultancy 020 7367 5225 www.matthey.com

 

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