Johnson Matthey PLC, the specialty chemicals and precious metals group, after posting a 20 per cent increase in profits said that it expected to increase its bottom line further in the second half. The company is also reputed to be world's biggest distributor of platinum-group metals.
Pre-tax profit for the six months to 30 September jumped 20 per cent to £106.4 million from £88.3 million a year ago. The revenue slipped 7 percent to £2.28 billion, which was attributed to lower precious metal trading volume by the group. The underlying profit, not including restructuring and disposal costs, increased 3 per cent to £106.4 million.
Chief executive Neil Carson said: “In the first half good growth in Catalysts, Precious Metal Products and Ceramics has more than compensated for the shortfall in Pharmaceutical Materials caused mainly by the expiry of the carboplatin patent.”
He felt optimistic for the second half and added: “The outlook for the second half is for increased top-line growth driven by the launch of new products for heavy and light duty diesel vehicles, and growth in Asia.”
Catalysts division, which was instrumental in steering growth of revenues, will be augmented as the group plans to spend £30 million more in the second half to enhance the capacity required particularly for heavy duty diesel catalysts and catalysed soot filters.
The group does not see the similar spurt in the Precious Metal Products unit, where profits would be ahead, but not in the same scale as in the first half.
But, in the Pharmaceutical Materials business it is expected that higher profits will be posted in the second half buoyed by strong sales in the US.
The group raised interim dividends from 8.7 pence to 9.1 pence per share, as earnings per share for the half-year rose by 36 percent to 35.2 pence.
Posted
on : Wed, 23 Nov 2005 12:15 GMT | Business News
By : Mark Richardson
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