Johnson Matthey sees profits slide by 13 per cent as precious metals fail to perform

Johnson Matthey, the chemicals and precious metals company, has released preliminary results for the year ended 31 March (release). The firm saw profit before tax drop by 13 per cent to £354.9m.

The company noted a very disappointing year from its precious metal products division, especially in services, with sales down six per cent and underlying profit falling by 27 per cent.

Commenting on the results, Neil Carson, chief executive of Johnson Matthey said:

Johnson Matthey had a challenging year, but nevertheless we remain very well positioned to grow our business over the medium and long term. After two very strong years, continued growth in Environmental Technologies Division in 2012/13 was more than offset by a poor performance from our Precious Metal Products Division. Although underlying earnings per share in the year were 2% lower than 2011/12, the board is recommending an increase in the full year dividend of 4% reflecting its confidence in the medium term prospects for the group.