HIGHLIGHTS

• Profits before tax up 20% to £130.2m despite adverse exchange translation effect of £5.6m

• Earnings per share - excluding exceptionals up 23% to 44.3 pence

• Earnings per share - including exceptionals up 34% to 48.2 pence

• Dividend for year up 15% to 17.8 pence

• Strong performance from three divisions; Precious Metals up 19%, Catalytic Systems up 33%, and Electronic Materials up 30%

• Precious Metals Division well ahead of last year in all three sectors, with good demand for platinum group metals, growth in refining and strong sales of high performance chemicals

• Catalytic Systems Division performed well in both Europe and North America

• Excellent progress in Pharmaceutical Materials particularly with methylphenidate. Operating profits up 46%

• In Electronic Materials, semiconductor package sales at Chippewa Falls close to full capacity at 1.5 million units per month. Strong recovery in Wafer Fabrication Materials business following last year's downturn in the DRAM market

• Ceramic Materials Division down 29%. Refocusing and rationalisation of the business progressing well

• Capital expenditure of £77.2m, equal to 1.7 times depreciation.

• Cash flow from operations up 26% at £156.4m. Free cash flow well up at £28.8m

• Gearing 45%, interest cover 15 times

• Michael Miles appointed Chairman, following retirement of David Davies

• Chris Clark appointed Chief Executive

Commenting on the results, Chris Clark, Chief Executive of Johnson Matthey, said:

"We are very pleased to report that during the year ended 31st March 1998 Johnson Matthey achieved profit growth of 20% and made good progress towards its strategic objectives. Overall the outlook for 1998/99 is positive, with Johnson Matthey well placed at the forefront of many key and exciting technologies".

Review of Year Ended 31st March 1998 and Preliminary Financial Statements
(This file requires Adobe Acrobat Reader)

Enquiries:

Johnson Matthey