JOHNSON Matthey, the world’s largest supplier of catalytic converters for vehicles, expects second-half profits to be “slightly ahead” of the first, after a third quarter boosted by Chinese sales and North American truck sales.
The British speciality chemicals company said yesterday underlying profit before tax rose 34 per cent to £104m in the quarter, in line with analysts’ expectations despite market volatility.
That was on the back of a 22 percent rise in sales, as the group benefited from increased market share in China after winning business from a local producer for its pollution-curbing converters, and a jump in North American truck production.
The news sent its shares up 5.2 per cent yesterday, making Johnson Matthey a top gainer in a FTSE 100, as investors welcomed a beat against the implied consensus for full-year earnings.
The group said the economic environment in Europe, which accounts for more than a third of its sales, remained “challenging”, but demand for its products, particularly in North America, was holding up well. The company’s environmental technologies division also saw a sales lift.
