"The current year has started satisfactorily for the group with profits ahead of last year.

All three sectors of Precious Metals Division are up on last year. The division's refining and manufacturing operations have done particularly well. Favourable conditions in major metal markets have helped earnings from sales of precious metals.

Catalytic System Division's profits were also better than last year in the first quarter with Pharmaceutical Materials contributing most of the increase.

Profits of the Electronic Materials Division are about level with last year but markets are becoming increasingly difficult. Semiconductor Packages is performing well, with output at capacity and yields exceeding budgeted levels. The Division's other three businesses are trading below last year as a result of industry destocking combined with pressure on prices originating in Asia. Action is being taken to reduce costs.

Ceramic Materials was ahead of last year on a like for like basis. The acquisition of 100% ownership of the business in February and the cost-cutting measures and disposals that followed mean that profits attributable to Johnson Matthey are more than double last year.

Despite the difficult trading conditions being experienced by Electronic Materials, the outlook for the year for the group as a whole remains positive."