Profitable
growth in all four operating divisions
Summary
Results
| |
Half
year to 30th September |
| |
2004
|
2003
|
%
change
|
| Statutory
Basis: |
|
|
|
| Turnover |
£2,473m
|
£2,165m
|
+14
|
| Profit
before tax |
£62.0m
|
£87.6m
|
-29
|
| Earnings
per share |
18.5p
|
27.8p
|
-33
|
| |
|
|
|
| Before
Exceptional Items and Goodwill Amortisation: |
|
| Profit
before tax |
£103.3m
|
£97.5m
|
+6
|
| Earnings
per share |
33.6p
|
31.8p
|
+6
|
| |
|
|
|
| Dividend
per share |
8.7p
|
8.2p
|
+6
|
- Profit
before tax, exceptional items and goodwill amortisation
up 6% at £103.3 million despite adverse exchange
translation
- Earnings
per share before exceptional items and goodwill
amortisation also up 6% at 33.6 pence. Interim
dividend increased by 6% to 8.7 pence
- Strong
operating cash flow. Net borrowings reduced by £31.3
million to £363.2 million
- Exceptional
costs of £30.7 million comprise acquisition
integration costs (£3.0 million); loss on
disposal of Pigments & Dispersions (£15.3
million); and cost of closing the UK gold and silver
bullion refinery (£12.4 million)
Divisional
Performance
Operating
Profit (before exceptional items and goodwill amortisation)
| |
Half
year to 30th September |
£m
|
2004
|
2003
|
%
change
|
2004
at 2003 exchange rates
|
%
change
|
| Catalysts |
56.9
|
56.5
|
+1
|
59.9
|
+6
|
| Precious
Metals |
23.4
|
21.9
|
+7
|
24.4
|
+11
|
| Pharmaceutical
Materials |
20.9
|
20.7
|
+1
|
22.2
|
+7
|
| Colours & Coatings |
12.8
|
10.4
|
+23
|
13.8
|
+33
|
| Corporate |
(8.3)
|
(7.8)
|
|
(8.3)
|
|
|
|
|
|
|
| Continuing
operations |
105.7
|
101.7
|
+4
|
112.0
|
+10
|
| Discontinued
operations |
0.4
|
1.4
|
|
0.4
|
|
|
|
|
|
|
| Operating
profit |
106.1
|
103.1
|
+3
|
112.4
|
+9
|
|
|
|
|
|
- At
constant exchange rates operating profit before
exceptional items and goodwill amortisation up
9%. All four divisions comfortably ahead of first
half of last year
Business prospects
- Excellent
outlook for heavy duty diesel (HDD) catalysts.
Increased investment in product development and
in new programmes in partnership with leading original
equipment manufacturers
- European
autocatalyst market continues to grow driven by
strong sales of light duty diesel (LDD) vehicles.
Johnson Matthey very well positioned in LDD market
and investing in increased manufacturing capacity
- Asian
autocatalyst business performing well. Investment
in expanding production capacity in both Japan
and China
- Platinum
group metal trading conditions remain good. Improved
market conditions combined with strong volume growth
has more than offset the impact of revised Anglo
Platinum contract terms announced last November
- In
Pharmaceutical Materials our pipeline of new products
is strong. New generic drugs will significantly
add to revenues from 2006 onwards
- Focus
on improving returns of underperforming assets.
Should release cash which will be used to buy back
shares
Commenting
on the results, Neil Carson, Chief Executive of Johnson
Matthey said:
“All
of our divisions showed good underlying growth in
the first half.
Our
strategy is robust and has positioned us well. We
will focus on the delivery of organic growth, particularly
from our Catalysts and Pharmaceutical Materials businesses
where we have invested to meet future demand. We
are taking action to rationalise businesses whose
performance does not meet our return criteria.
We
expect to achieve continued growth in earnings per
share before exceptional items and goodwill amortisation
in the second half.”
|
Enquiries:
Johnson
Matthey
Ian
Godwin
Group Communications Manager
Johnson Matthey
+44 (020) 7269 8410
Howard
Lee
The HeadLand Consultancy
+44 (020) 7036 0369
Laura
Hickman
Gavin Anderson & Co
+44 (020) 7554 1400
|
