Interim Results
for the six months ended 30th September 2005 		 
   

On track for good growth for the year

Summary Results

  
   
• Sales revenue down 7% reflecting lower precious metal trading volume. Sales excluding precious metals up 9%
   
• Profit before tax up 20% at £106.4 million. Underlying growth of 3% excluding restructuring costs in 2004
   
• Total earnings per share up 36% at 35.2 pence. Underlying growth of 5% excluding restructuring and disposal costs in 2004. Interim dividend increased by 5% to 9.1 pence
   
• Impact of exchange translation slightly favourable
   
• Strong operating cash flow. Net cash inflow of £18.5 million after £11.9 million net cash cost of share purchases
 
   
Divisional Performance  
   
     
Operating Profit    
 
Half Year to 30th September
%
£ million 2005
 2004*

change
 
Catalysts 65.2 61.2 +7
Precious Metal Products 30.6 27.5 +11
Pharmaceutical Materials 16.2 21.1 -23
Ceramics 10.8 9.2 +17
Corporate (8.3) (8.2)  
 
 
Operating Profit 114.5 110.8 +3
 
 
* excluding restructuring costs in 2004
       
 
   
Business Prospects  
   
• Good growth in Environmental Catalysts and Technologies expected in the second half of the year benefiting from the strength of the diesel catalyst market in Europe and good growth in Asia
   
• Additional capital expenditure on new capacity to manufacture heavy duty diesel (HDD) catalysts and catalysed soot filters (CSFs) planned for the second half of 2005/06
   
• Further expansion planned in Asia including a new facility to manufacture autocatalysts in Korea
   
• High oil price supports growth in Process Catalysts and Technologies with increased demand for catalysts for hydrogen production and purification
   
• Precious Metal Products to benefit from continued good growth in manufactured products and the firm platinum price
   
• Pharmaceutical Materials’ profits expected to improve in the second half of the year with stronger sales in the US
   
• Ceramics’ encouraging performance should continue in the second half of 2005/06 with good cash generation
 
   
Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:

“In the first half good growth in Catalysts, Precious Metal Products and Ceramics has more than compensated for the shortfall in Pharmaceutical Materials caused mainly by the expiry of the carboplatin patent. Our cash performance has also been good.

The outlook for the second half is for increased top-line growth driven by the launch of new products for heavy and light duty diesel vehicles, and growth in Asia.”		  
   

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