20 Nov 2014

Half Year to 30th September
% change
% at constant rates 1
2014
2013


Revenue
£4,800m
£6,411m
-25
-22
Sales excluding precious metals
£1,514m
£1,486m
+2
+8
Profit before tax
£207.8m
£202.1m
+3
+12
Earnings per share
85.6p
86.0p

-


Underlying 2:

Profit before tax
£216.4m
£212.9m
+2
+10
Earnings per share
88.7p
84.9p
+4


Dividend per share:

18.5p

17.0p

+9

1 % change if 1H 2013/14 results are converted at average exchange rates for 1H 2014/15.
2 before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses, significant tax rate changes and, where relevant, related tax effects.

Johnson Matthey continues to make good progress:

  • Sales excluding precious metals (sales) increased by 2% to £1.5 billion; at constant exchange rates and adjusting for loss of commission income from Anglo American Platinum Limited (Anglo Platinum) the group's sales grew by 10%
  • Profit before tax increased by 3%; underlying profit before tax increased by 2%, and 10% at constant rate
  • Earnings per share (EPS) flat; underlying EPS increased by 4%
  • Investment in R&D of £80 million, up 10%
  • Cash flow conversion of 50% (1H 2013/14 68%)
  • Strong balance sheet; net debt (including post tax pension deficits) / EBITDA of 1.4 times
  • Return on invested capital (ROIC) 20.3%
  • Interim dividend up 9% to 18.5 pence
  • Performance for the full year expected to be slightly ahead of 2013/14

Divisional overview

Emission Control Technologies performed strongly with sales up 7% and underlying operating profit 25% higher, benefiting from:

  • Tighter legislation in Europe and Asia
  • Increased demand for heavy duty diesel trucks in the US
  • Process efficiency improvements and higher plant utilisation.

Process Technologies ' sales were 2% down but underlying operating profit was 2% ahead due to:

  • A good performance in its Oil and Gas businesses
  • A weaker first half in its Chemicals businesses as a result of the timing of catalyst orders and slower licensing activity.

Precious Metal Products ' sales and underlying operating profit were down 10% and 30% respectively, impacted, as expected, by the loss of commission revenue from Anglo Platinum

Fine Chemicals' sales reduced by 4% but underlying operating profit was 3% ahead mainly as a result of a positive product mix in its API Manufacturing business

New businesses made further progress with sales up 5% supported by growth in Battery Technologies. Continued investment led to a modest increase in the underlying operating loss

Commenting on the results, Robert MacLeod, Chief Executive of Johnson Matthey said:

“I am pleased to report that Johnson Matthey continued to make good progress in the first half of 2014/15, particularly in Emission Control Technologies. The group's sales were up by 2% and were 10% ahead if the impact of the change in our contracts with Anglo Platinum and foreign currency translation are excluded. Underlying earnings per share grew by 4% and the interim dividend of 18.5 pence is 9% ahead of last year. We have also taken further steps in our strategy to establish new businesses in areas that align with our technology competences.

The group's results in the first half of 2014/15 were in line with our expectations. In the second half we expect good underlying growth compared to the same period last year. However, this will be partly offset by the impact of the loss of commission income from Anglo Platinum in the third quarter. If current exchange rates prevail, foreign currency translation will not materially impact results in the second half. The group's performance in 2014/15 is expected to be slightly ahead of 2013/14."

Notes:

About Johnson Matthey

Johnson Matthey is a global speciality chemicals company underpinned by science, technology and its people. A leader in sustainable technologies, many of the group's products enhance the quality of life of millions through their beneficial impact on the environment, human health and wellbeing. The group focuses on clean air, clean energy and low carbon technologies and is an expert in the application and recycling of precious metals. Johnson Matthey has operations in over 30 countries and employs around 12,000 people. Its products and services are sold across the world to a wide range of advanced technology industries.

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