Johnson Matthey performed well in the first half of 2010/11 benefiting from good growth in most of its markets, especially catalysts for light duty vehicles in North America and Asia and a steady recovery in catalysts for heavy duty diesel. The increased demand for our products was reflected in stronger platinum group metal prices which also benefited the group.
The group’s revenue increased by 28% to GBP4.6 billion, as a result of increased levels of activity in all of its major markets and higher precious metal prices. Sales excluding the value of precious metals (sales) were up by 25% to GBP1.1 billion, with Environmental Technologies 29% ahead and Precious Metal Products 25% up on the first half of last year. Fine Chemicals’ sales were up 8%. At constant exchange rates, sales for the group grew by 22%.
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Underlying operating profit (before amortisation of acquired intangibles, major impairment and restructuring charges) increased by 40% to GBP174.0 million with all of our divisions benefiting from much higher levels of activity than in the first half of last year. At constant exchange rates, underlying operating profit was up by 37%. The group’s underlying return on sales increased to 15.8% from 14.0% in the same period last year as the group benefited from the improved economic conditions and management actions to reduce costs taken during the downturn.
The group’s net finance costs reduced by GBP0.5 million to £9.7 million mainly due to the effect of lower interest rates. Underlying profit before tax (before amortisation of acquired intangibles, major impairment and restructuring charges and profit or loss on disposal of businesses) was 44% higher at GBP164.3 million. Profit before tax increased by 32% to GBP144.1 million.
Total basic earnings per share grew by 32% to 49.2 pence. Underlying earnings per share increased by 44% to 56.3 pence.
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