Half Yearly Report 2009 - Summary Results

Johnson Matthey Half-Yearly Report 2009

Summary Results

Half year results for the six months ended 30th September 2009

	Half Year to 30th September			%
	2009		2008	change

Revenue	£3,577m		£4,355m	-18%
Sales excluding precious metals	£883m		£924m	-5%
Profit before tax	£109.5m		£140.3m	-22%
Total earnings per share	37.4p		46.8p	-20%

Underlying*:
Profit before tax	£114.4m		£144.9m	-21%
Earnings per share	39.1p		48.4p	-19%

Dividend per share	11.1p		11.1p	–

*	before amortisation of acquired intangibles

•	Johnson Matthey performed well in the first half in the context of the global economic downturn

•	Sales revenue in the period was down 18% at £3.6 billion as a result of reduced activity and lower precious metal prices

•	Sales excluding precious metals fell 5% to £883 million

•	Profit before tax and amortisation of acquired intangibles was 21% lower at £114.4 million

•	Underlying earnings per share were down 19% to 39.1 pence

•	Balance sheet remains strong with net debt of £584.3 million. Gearing was 48%. Positive cash flow from operations of £77.6 million

•	Dividend maintained at 11.1 pence

Business Prospects


•	While visibility in some of our global markets remains limited, Environmental Technologies Division is expected to be significantly up in the second half of this year compared with the same period last year

•	At current pgm prices, results for Precious Metal Products Division are expected to improve further in the second half of the year but are unlikely to match those for the second half of last year

•	Fine Chemicals Division is expected to deliver steady underlying growth for the full year if the one-off benefit associated with the launch of ADDERALL XR® is excluded


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

	"Johnson Matthey performed well in the first half of 2009/10 despite a 16% drop in global light duty vehicle production and a 33% reduction in the average price of platinum. Our strategy to develop our businesses on a global scale will continue to benefit us through exposure to the growth markets of China and India, helping to offset weaker markets in the United States and Europe. Whilst visibility remains limited in some of our end user markets, the group is well placed to benefit from economic recovery. The outlook for the full year is in line with current market expectations. Looking further ahead, the long term legislative and environmental drivers for our businesses remain firmly in place. We continue to invest in our technologies, our manufacturing infrastructure and our people. Johnson Matthey is well positioned to return to growth in the near future."