Johnson Matthey PLC Q3 Trading Statement (3143D)
January 28 2015 - 02:00AM
UK Regulatory
TIDMJMAT
RNS Number : 3143D
Johnson Matthey PLC
28 January 2015
For release at 7.00 am on Wednesday 28(th) January 2015
Johnson Matthey Plc - Q3 Trading Update
Group sales up 5%
On track to deliver full year results slightly ahead of 2013/14,
in line with expectations
Johnson Matthey, a global leader in sustainable technologies,
today provides its third quarter trading update. Unless otherwise
stated, figures quoted in this statement are for the quarter ended
31(st) December 2014.
Q3 Q3
2014/15 2013/14 %
GBP million GBP million change
Sales excluding precious metals
(sales)
Emission Control Technologies 435 397 +9
Process Technologies 134 133 -
Precious Metal Products 92 95 -3
Fine Chemicals 73 76 -3
New Businesses 23 21 +13
Eliminations (12) (14)
------------ ------------
Group sales 745 708 +5
------------ ------------
Underlying operating profit(1) 105.7 107.1 -1
Underlying profit before tax(1) 96.5 96.0 +1
--------------------------------------------- --------- ------------ ------------ --------------
(1) 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.
Overview of Trading
Johnson Matthey made progress in the third quarter supported by
a continued strong performance from Emission Control Technologies.
Overall, sales excluding precious metals (sales) were 5% ahead at
GBP745 million (2013/14 GBP708 million) and underlying profit
before tax in the quarter increased slightly to GBP96.5 million
(2013/14 GBP96.0 million). If the loss of around GBP10 million in
commission income from Anglo American Platinum (Anglo Platinum) is
excluded, the group's sales were 7% ahead and underlying profit
before tax grew at double digit rates, reflecting good growth in
the business. There was no material foreign currency translation
effect on results in the third quarter and if current rates prevail
we expect no further impact for the remainder of the year.
Emission Control Technologies (ECT)
ECT continued to perform well with sales 9% ahead at GBP435
million (2013/14 GBP397 million). Operating profit was also ahead.
Sales of light duty vehicle catalysts grew by 5% to GBP266 million,
ahead of global car production which fell slightly compared to last
year. Growth in sales was particularly strong in Europe where the
business benefited from demand for Euro 6b catalysts to meet the
recently introduced legislation. Our heavy duty diesel catalyst
business increased its sales by 16% to GBP169 million, supported by
the continued strong demand for Class 8 trucks in the US. It also
benefited from an increased contribution from higher value Euro VI
catalysts in Europe, compared to the same period last year.
Process Technologies
Process Technologies' sales were flat at GBP134 million (2013/14
GBP133 million) although operating profit was significantly lower
due to a less favourable mix. As anticipated, sales in our
Chemicals businesses decreased, partly due to lower demand for
catalysts resulting from the timing of customer orders. The pace of
licensing activity, especially in China, remained slow and we now
expect this slowdown will continue into next year. Our Oil and Gas
businesses continued to grow well, supported by increased demand
for refinery additives and diagnostic services. Whilst the recent
fall in the oil price has not materially impacted trading in
Process Technologies to date, it has affected investment decisions
in the chemical industry. This will impact our business if these
lower prices are sustained.
Precious Metal Products
Sales in Precious Metal Products decreased slightly to GBP92
million (2013/14 GBP95 million). As expected, operating profit was
substantially lower as the division felt the final impact of the
change in the Anglo Platinum contracts in this quarter's result.
Sales increased in our Refining businesses, where good growth in
volumes in our platinum group metal (pgm) refineries was partly
offset by continued weakness in secondary gold and silver refining.
In December we agreed the sale of our Gold and Silver Refining
business to Asahi Holdings, Inc. for GBP118 million. We expect the
transaction to be completed by the end of March 2015. The
performance of our Manufacturing businesses was mixed though,
overall, sales were ahead of last year. Noble Metals saw good
demand in some of its markets, particularly for nitric acid
catalysts in Europe, and sales of products in our Advanced Glass
Technologies business were steady.
Fine Chemicals
Sales in Fine Chemicals were slightly behind at GBP73 million
(2013/14 GBP76 million) but operating profit increased due to
product mix benefits. Our Active Pharmaceutical Ingredient (API)
Manufacturing business benefited from a good contribution from APIs
for the treatment of ADHD and from sales of an API for drug
addiction therapies that had been previously delayed. However,
lower demand for pain management APIs in Europe and bulk opiates
resulted in a slight decrease in the business' sales. Sales in both
Catalysis and Chiral Technologies and Research Chemicals were
steady.
New Businesses
New Businesses continued to perform in line with expectations,
with sales of GBP23 million (2013/14 GBP21 million). The operating
loss increased as anticipated and we continue to expect that
investment for the year as a whole will be slightly higher than in
2013/14.
Outlook
The outlook for the divisions in the current financial year
remains unchanged from that given in our half-yearly report.
Consequently, we continue to expect the group's underlying profit
before tax in 2014/15 to be slightly ahead of 2013/14, despite the
adverse impact from the loss of commission revenue from Anglo
Platinum in the first three quarters of the year and the effect of
foreign currency translation in the first half.
Notes:
1 Call for Analysts and Investors
Den Jones, Group Finance Director, will host a conference call
at 8.00 am today, Wednesday 28(th) January 2015, to discuss this
trading update. The dial-in number for UK callers is 0800 678 1161;
for overseas callers the number is +44 1296 311 600; and the
passcode is 443658#. Please dial in approximately 15 minutes prior
to the start of the conference call to allow time for
registration.
2 Investor Event
Tomorrow, Thursday 29(th) January 2015, Johnson Matthey is
holding an investor event in Reading and at the group's technology
centre in Sonning where we will present an overview of the group's
strategy and technology. No material new information will be
disclosed in the presentations which will be webcast live. The
slides from the presentations will be available on the company
website (www.matthey.com) from 10.30 am and the on demand webcast
will be available during the morning of Friday 30(th) January.
Enquiries:
020 7269
Sally Jones Director, IR and Corporate Communications 8407
020 7353
David Allchurch / Tom Buchanan Tulchan Communications 4200
www.matthey.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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