Johnson Matthey has posted half year sales excluding precious metals (sales) 1% ahead at GBP1.3bn (US$2.08bn), with underlying profit before tax down 6% at GBP191m and flat underlying earnings per share.

"Against a difficult market environment, particularly the impact of lower average precious metal prices, Johnson Matthey delivered growth in operating profit from Environmental Technologies and Fine Chemicals, although this was more than offset by the weaker performance of Precious Metal Products," said Johnson Matthey chief executive, Neil Matthey.

"Underlying earnings per share were maintained at 72.9p. While precious metal prices have improved from their lows during the summer, largely due to the labour unrest in South Africa, the outlook in some of our other markets has weakened and visibility remains limited.

"We therefore expect that the group's performance in the second half will be similar to the first half of the year."

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Half Year Results 2012/13

Visit our Results Centre for the full half year results and presentation.

Summary Results

 

  Half Year to 30th September %
  2012 2011 change

Revenue £4,892m £5,900m -17
Sales excluding precious metals £1,310m £1,293m +1
Profit before tax £183.4m £195.1m -6
Earnings per share 70.4p 70.3p -

Underlying*:      
Profit before tax £191.2m £203.0m -6
Earnings per share 72.9p 72.8p

-

Dividend per share 15.5p 15.0p +3

 

 

*before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses and, where relevant, related tax effects

  • Sales excluding precious metals (sales) 1% ahead at £1.3 billion
  • Despite difficult market environment, underlying profit before tax down 6% and underlying earnings per share were flat
  • Return on invested capital (ROIC) at 21.7%
  • Balance sheet remains strong with net debt (including post tax pension deficits) / EBITDA of 1.4 times
  • Interim dividend up 3% to 15.5 pence

Business Overview

Environmental Technologies Division continued to make good progress with sales up 3% and underlying operating profit 17% ahead.

  • Emission Control Technologies’ sales grew by 4%, benefiting from good growth in North America and Asia which was partly offset by weaker market conditions in Europe
  • Steady progress in Process Technologies with sales 1% up in the first half

Precious Metal Products Division’s sales were down by 5% and operating profit was down 33%.

  • Significant decline in our Services businesses principally due to the impact of lower volumes and lower average precious metal prices
  • Sales in our Manufacturing businesses slightly down

Fine Chemicals Division performed well with sales slightly down but underlying operating profit well ahead driven by good demand for higher margin products.

Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:

“Against a difficult market environment, particularly the impact of lower average precious metal prices, Johnson Matthey delivered growth in operating profit from Environmental Technologies and Fine Chemicals, although this was more than offset by the weaker performance of Precious Metal Products. Underlying earnings per share were maintained at 72.9p.

Whilst precious metal prices have improved from their lows during the summer, largely due to the labour unrest in South Africa, the outlook in some of our other markets has weakened and visibility remains limited. We therefore expect that the group's performance in the second half will be similar to the first half of the year.”

 

Original source: http://www.matthey.com/media_and_news/news/2012/half-year-results-for-the%20six-months-ended-30th-september-2012