On track for good growth for the year
Summary
Results
| |
Half year to 30th September |
| |
|
2005 |
2004 |
%
change |
%
underlying
growth*
|
| Revenue |
£2,283m |
£2,461m |
-7 |
-7 |
| Sales excluding precious metals |
£637m |
£586m |
+9 |
+9 |
| |
|
|
|
|
|
| Profit before tax |
£106.4m |
£88.3m |
+20 |
+3 |
| Total earnings per share |
35.2p |
25.8p |
+36 |
+5 |
| |
|
|
|
|
|
| Dividend per share |
9.1p |
8.7p |
+5 |
+5 |
* excluding restructuring and disposal costs in 2004
- 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 |
£m |
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.”
Presentation to Analysts
(Download presentation source - Interim05.PPT 4.5MB )
Review
of half year ended September 2005 (html)
Review of half year ended September 2005
(This file requires Adobe Acrobat Reader)
|
Enquiries:
Ian Godwin
Director, IR and Corporate Communications
Johnson Matthey
+44 (0)20 7269 8410
John Sheldrick
Group Finance Director
Johnson Matthey
+44 (0)20 7269 8438
Howard
Lee
The HeadLand Consultancy
+44 (0)20 7036 0369
Ella Tekdag
The HeadLand Consultancy
+44 (0)20 7036 0316
|
