Summary Results

• Sales revenue up 20% to £3.5 billion reflecting good underlying volume growth and higher precious metal prices
• Sales excluding precious metals up 28% to £840 million with double digit organic growth in all three divisions
• Operating profit up 14% to £132.4 million despite adverse exchange translation which reduced reported profit by £2.8 million. Translated at constant exchange rates operating profit was up 16%
• Profit before tax for the continuing businesses 15% higher at £120.1 million
• Earnings per share (eps) before one-off items up 7% at 41.0 pence. Interim dividend increased by 0.7 pence to 10.6 pence in line with earnings growth
• Debt up £54 million with a net £48 million spent on share buy-backs. Gearing (debt / equity) 39%

Business Overview

Divisional growth rates stated at constant exchange rates (note 3, page 17)

• Environmental Technologies Division’s sales excluding precious metals up 41% to £541 million and operating profit up 14% to £65.2 million
• Double digit growth in Emission Control Technologies will continue in the second half, driven by increasing demand for heavy duty diesel catalysts, particulate filters for diesel cars in Europe and expansion in Asia
• Three new factories (in Russia, South Korea and Royston, UK) will be opened in the second half of the year
• High oil price supports growth in Process Technologies with good demand for catalysts and purification materials. Davy Process Technology continues to achieve good growth with continued strong demand in Asia
• Precious Metal Products Division’s sales excluding precious metals up 17% to £151 million and operating profit up 31% to £47.2 million
• In the first half platinum group metal prices have been rising and the division’s manufacturing businesses have achieved good growth. Last year’s second half result included some one-off gains on minor metals which are unlikely to recur, so growth in the second half of this year will be slower than in the first
• Fine Chemicals & Catalysts Division’s sales excluding precious metals up 20% and operating profit up 6% to £31.0 million
• Sales growth was boosted by higher base metal prices, particularly nickel, used in catalysts sold into the division’s end markets. Good growth in opiate sales in the US and in Research Chemicals’ sales in Asia. Operating profit growth in the second half is expected to be similar to or slightly better than the first

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

"Johnson Matthey has delivered another period of strong growth in the first half of 2007/08. Despite a weak dollar, profit before tax increased by 15% on the back of double digit sales growth in all three divisions.

Prospects for the second half remain encouraging. Heavy duty diesel will benefit from a full six months’ sales to US OEMs. New capacity to meet growing demand for autocatalysts and particulate filters in Asia and Europe will come on stream. Platinum group metal prices are set to remain buoyant. We expect earnings growth in the second half to be similar to that achieved in the first."

Presentation to Analysts
(Download presentation source - HalfYear07.ppt 1.9MB )

Review of half year ended 30th September 2007 (html)

Review of half year ended 30th September 2007 (pdf)
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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 8408

Howard Lee
The HeadLand Consultancy
+44 (0)20 7367 5225

Laura Hickman
The HeadLand Consultancy
+44 (0)20 7367 5227