Precious metal division weighs on Johnson Matthey

6th Jun 2013 07:07

Speciality chemicals company Johnson Matthey reported weaker annual results, in what it described as a challenging year, but said it remains well positioned to grow its business over the medium and long term.Underlying pre-tax profit declined to £389.2m for the year ended March 31st 2013 from £426.0m a year earlier. Revenue reduced to £10.7bn from £12.bn before.Pre-tax profit fell 13% to £354.9m and earnings per share fell to 150.0p from 153.7p. The FTSE 100 platinum refiner said sales, excluding precious metals, were flat at £2.7bn. Johnson Matthey conceded it had been a very disappointing year at its Precious Metal Products Division, particularly at its Services businesses, with sales 6% down and underlying operating profit 27% lower. As previously announced, the loss of current contracts with Anglo American Platinum will impact the group's fourth quarter 2013/14 results.Elsewhere the group saw continued growth in Environmental Technologies Division during the year with sales 2% ahead of last year and underlying operating profit 7% higher.Emission Control Technologies (ECT) was impacted by the weak European car market but heavy duty diesel catalyst business continued to grow, it explained.Process Technologies' sales were slightly ahead on last year while operating profit increased significantly, boosted by a solid result from Davy Process Technology (DPT). Commenting on the results, Chief Executive Neil Carson said: "After two very strong years, continued growth in Environmental Technologies Division in 2012/13 was more than offset by a poor performance from our Precious Metal Products Division." "Although underlying earnings per share in the year were 2% lower than 2011/12, the board is recommending an increase in the full year dividend of 4% reflecting its confidence in the medium term prospects for the group."A final dividend of 41.5p has been offered, giving a full year dividend of 57.0p.Carson added: "2013/14 will be a year of transition as on January 1st 2014 new Euro VI legislation comes into force for heavy duty diesel vehicles in Europe and on the same date our new arrangements with Anglo Platinum will commence." "Overall, we expect that the group will make steady progress in 2013/14 notwithstanding the loss of revenue from Anglo Platinum." CJ