| Outlook
The outlook for the group for the next few years continues to be very encouraging. We expect to achieve further strong growth in sales excluding precious metals, particularly in Environmental Technologies Division. In 2007/08 growth in underlying earnings per share will be approximately 4 to 5% less than the growth in profit before tax for the continuing businesses, because of the dilutive effect of the sale of Ceramics. However, looking forward to 2008/09 and beyond, growth in profit before tax and earnings will be stronger as a result of the divestment.
 In 2007/08 we should benefit from a full year of sales of HDD catalysts to meet new emission standards introduced in Europe in October 2006 and in North America in January 2007. Although industry experts are predicting a 25% fall in truck sales in North America in 2007, all new trucks sold will need to meet the emissions legislation, which will provide the opportunity for significant new business for Johnson Matthey. In addition, ECT should achieve significant growth in sales of CSFs for light duty diesel vehicles and grow its market share of autocatalysts in Asia. Overall, we expect ECT to achieve double digit growth in both sales and operating profit in 2007/08.
Our Process Technologies business is also experiencing strong demand, particularly for catalysts for synthesis gas and hydrogen production. Prospects for Process Technologies are encouraging, driven by the high oil price and the need to make more efficient use of hydrocarbon feedstocks.
Precious Metal Products Division enjoyed very strong growth in 2006/07, benefiting from buoyant trading conditions in platinum group metals and good growth in its manufacturing businesses. In the second half of the year the division benefited from some trading profits on the minor pgms which we do not expect to be repeated at the same level in 2007/08, but overall, if current market conditions continue, we would still expect the division to achieve further growth in 2007/08, particularly in the first half of the year.
Our new Fine Chemicals & Catalysts Division is expected to achieve steady growth in 2007/08, with a further recovery in the US Pharmaceutical Materials & Services business and continued growth in catalysts and research chemicals. Most of the division’s growth in 2007/08 is likely to come in the second half of the year.
Overall, the group should perform well in 2007/08. Prospects for all our businesses are good, particularly for Environmental Technologies where global concerns about pollution, climate change and making the most efficient use of energy resources will create significant opportunities for future growth.
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