Profits up for Johnson on demand jump
British speciality chemical company Johnson Matthey yesterday said first-quarter profit jumped 47 per cent as it recovered from a slump in demand, and forecast an improved full-year performance.
The platinum refiner and world’s largest supplier of catalytic converters said yesterday Apri to June sales excluding precious metals rose 32 per cent on the 2009 period, and were slightly ahead of the prior three months.
Falling demand for automotive products hit the group last year as the recession took its toll on sales.
Johnson Matthey, which profited from a precious metals price increase in the second half of its 2009-10 year, forecast a strong first half earlier this year.
It said yesterday that second-quarter sales would be slightly lower than in the first quarter but the outlook for the year was robust.
“The outlook for the second half of the year still remains harder to predict but if demand remains at current levels our full-year results will be well ahead of last year,” chairman John Banham said in a statement.
The company said sales at its Environmental Technologies division were up 39 per cent while its Precious Metals Products unit benefited from strong platinum prices.
However, Charles Stanley analyst Jeremy Batstone-Carr said the company’s prospects were far from certain, despite the generally robust trading performance: “Economic conditions are likely to deteriorate. We note, too, that Brazil sales have started to slip, for the first time in over a year while the European passenger car market remains extremely tough and that Asia remains highly competitive.”
Johnson Matthey’s shares closed 2.3 per cent higher at 1,636p yesterday valuing the company at £3.4bn.