Shares of Johnson Matthey Plc. (JMAT.L, JMPLY.PK) were gaining around 5 percent in the early morning trading in London after the specialty chemicals firm reported Thursday higher pre-tax profit in its first half, benefited by increased sales in Emission Control Technologies segment. Total revenues, meanwhile, were hurt mainly by loss of commission revenue from Anglo American Platinum Limited.
Looking ahead, Chief Executive Robert MacLeod said, "In the second half we expect good underlying growth compared to the same period last year. However, this will be partly offset by the impact of the loss of commission income from Anglo Platinum in the third quarter... The group's performance in 2014/15 is expected to be slightly ahead of 2013/14."
For the first half, pre-tax profit increased 3 percent to 207.8 million pounds from 202.1 million pounds a year ago.
Profit attributable to owners of the parent, however, edged down to 173.7 million pounds from 174.3 million pounds last year, reflecting higher tax expenses. Earnings per share declined to 85.6 pence from 86.0 pence a year ago.
Underlying pre-tax profit, which excluded certain items, was 216.4 million pounds, compared with 212.9 million pounds last year. Underlying basic earnings per share were 88.7 pence, versus last year's 84.9 pence.
In the first half, revenue plunged 25 percent to 4.80 billion pounds from 6.41 billion pounds a year ago. At constant rates, revenues declined 22 percent.
Precious Metal Products sales were down 10 percent, by the loss of commission revenue from Anglo Platinum. The company's sales excluding precious metals increased 2 percent to 1.51 billion pounds. At constant exchange rates and adjusting for loss of income from Anglo Platinum, the sales grew 10 percent.
The sales growth reflected strong sales of Emission Control Technologies segment that were boosted by tighter legislation in Europe and Asia, increased demand for heavy duty diesel trucks in the US as well as process efficiency improvements and higher plant utilisation.
Sales of Process Technologies and fine Chemicals were lower than last year.
The company said its Board of Directors has increased the interim dividend by 9 percent to 18.5 pence, to be paid on February 3, 2015, to shareholders of record on November 28.
In London, Johnson Matthey shares are currently trading at 3,300 pence, up 4.70 percent.
For comments and feedback contact: editorial@rttnews.com
Business News