Commenting on current
trading at today’s
Annual General Meeting, Michael Miles, Chairman of
Johnson Matthey, said:
“Johnson Matthey has made
an encouraging start to the new financial year with
first quarter earnings
before exceptional items and goodwill amortisation
ahead of last year despite the impact of the much weaker
US dollar. At constant exchange rates all four divisions
were ahead of last year.
Catalysts Division continues to
make good progress with Environmental Catalysts and
Technologies benefiting
from strong autocatalyst demand in Asia and increasing
sales of catalysts for diesel cars in Europe. Sales
of heavy duty diesel (HDD) catalysts to the retrofit
market were below last year when we benefited from
a major fitment programme in Japan. Expenditure on
R & D for the HDD business has been stepped up
reflecting the increasing number of programmes the
group is working on with original equipment manufacturers.
Process Catalysts and Technologies also had an encouraging
first quarter with a good contribution from AMC which
was acquired in March 2004.
Precious Metals Division's profits were ahead of last
year despite the impact of the lower commission rates
on the renewed contracts with Anglo Platinum. Trading
conditions in the platinum group metal markets have
improved with higher prices and increased volumes.
The division's platinum fabrication businesses have
also started well with good demand for precision machined
parts for medical applications.
Pharmaceutical Materials Division benefited from good
demand for opiate products and better market conditions
for contract manufacturing and research compared with
the first quarter of last year. Sales of platinum anticancer
products have also continued to be good.
Colours and Coatings Division was well up on the first
quarter of last year with continued growth in sales
to the glass industry and an encouraging recovery in
the Structural Ceramics business which serves the tile
industry. We expect to make an announcement on the
progress of offers for parts of this division in the
next few weeks.
Looking forward to the half year, we expect to see
continued growth in profit before tax, exceptional
items and goodwill amortisation despite the impact
of adverse exchange translation.
As you all know, Chris Clark is retiring after this
AGM. Chris has worked for Johnson Matthey for 42 years,
including 14 years as a main board director and the
last six as Chief Executive. Through his strong leadership,
Chris has steered the company, in partnership with
your board, through a successful period of strategic
change and growth. On behalf of all of us at Johnson
Matthey, I would like to thank Chris for the key role
that he has played in the development and success of
the group and wish him all the best for a well deserved
and very happy retirement.
As we announced last year, Chris
Clark will be succeeded as Chief Executive by Neil
Carson. Neil has 23 years
of experience working at Johnson Matthey and will be
an excellent successor to Chris."
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