Johnson Matthey Plc Interim Management Statement
Commenting on current trading at the Annual General Meeting to be held at 11.00 am today, Sir John Banham, Chairman of Johnson Matthey, will provide the following statement:
"Johnson Matthey has made a good start to the financial year with the first quarter benefiting from a continuation of the positive trends seen in our major markets during the second half of 2009/10.
In the three months to 30th June 2010 the group's sales excluding precious metals ("sales") were 32% ahead of the same period last year and slightly up on those in the fourth quarter of 2009/10. While there is not a great deal of seasonality in most of our businesses, the fourth quarter is usually our strongest. Underlying profit before tax was 47% ahead of the first quarter of last year and in line with that in the previous three months. The group's financial position remains strong.
Environmental Technologies Division's sales were 39% ahead of the same period last year and in line with those in the previous quarter. Emission Control Technologies' sales in the first quarter were also 39% up on the same period last year and were in line with the fourth quarter of last year. Autocatalyst sales volumes held up well in all the major regions. Sales of heavy duty diesel catalysts continued to steadily improve and were nearly double those in the same period last year and 12% ahead of the fourth quarter. Process Technologies' sales were 35% ahead of the first quarter of 2009/10 but were 8% down on the previous quarter, reflecting strong replacement catalyst sales in Q4 ahead of summer shutdowns by its customers.
Precious Metal Products Division had a strong first quarter benefiting from robust platinum group metal prices and good demand for industrial products and precious metal refining. Average platinum prices in the first quarter were 39% higher than in the same period last year and 4% up on those in the fourth quarter. The division's sales in the quarter were 34% up on the same period last year and 14% ahead of the last quarter of 2009/10.
Fine Chemicals Division also performed well with sales in the first quarter 6% ahead of the first quarter of last year, if the one-off benefit received last year from the launch of the first generic version of ADDERALL XR® is excluded. If this one-off benefit is included, sales were in line with those in Q1 last year. The division's sales were 6% ahead of those in the fourth quarter of 2009/10.
Looking ahead, for the group as a whole the second quarter will also be significantly stronger than the same period last year. However, we currently expect that its results will be lower than those in the first quarter due to normal seasonal factors, an expected end to recent stock building by the car companies and the potential impact on consumer confidence of economic uncertainty, particularly in Europe. As stated at the time of our full year results, the outlook for the second half of the year still remains harder to predict but, if demand remains at current levels our full year results will be well ahead of last year."
Conference Call for Analysts and Investors
Robert MacLeod, Group Finance Director will host a conference call at 8:00am today, Wednesday 21st July 2010, to discuss this Interim Management Statement.
The dial-in number for UK callers is 0800 387 772; for overseas callers the number is +44 1296 480 180; and the passcode is 237188#. Please dial in at least 5 minutes prior to the start of the conference call to allow time for registration.
