Johnson Matthey continued to perform well in the first half of 2011/12 with growth across all of the group’s divisions.
Revenue was 29% up at £5.9 billion as a result of increased activity and higher average precious metal prices. Sales excluding precious metals (sales) were 17% ahead at £1.3 billion led by Environmental Technologies which was 22% higher. At constant exchange rates, the group’s sales grew by 19%.
Underlying operating profit was 23% higher at £214.7 million. Despite the adverse impact of higher rare earth prices on our light duty gasoline autocatalyst business, the group’s underlying return on sales increased to 16.6% from 15.8%. This was chiefly a result of increased plant utilisation across much of the group and the effect of higher average precious metal prices on our Precious Metal Services businesses.
The increase in underlying operating profit and our continued emphasis on improving operational efficiency have yielded an increase in the group’s ROIC to 21.3% (year ended 31st March 2011 19.4%).
Underlying profit before tax was 24% up at £203.0 million and profit before tax increased by 35% to £195.1 million.
Underlying earnings per share were 29% ahead at 72.8 pence. Total basic earnings per share increased by 43% to 70.3 pence.