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First Quarter Interim Statement: Johnson Matthey published a flat set of results, as the impact of lower platinum and palladium prices offset the benefit of increased car and truck sales in North America. The group's core environmental technologies arm, which makes catalysts for cars and heavy industry and accounts for almost half group profit, saw sales in the quarter rise 12% and operating profit was "well ahead of last year", as the sale of diesel catalysts for trucks grew strongly in North America. "If market conditions and precious metal prices remain as they are today, the outlook for the group in the second quarter of 2012/13 is expected to be broadly similar to that of the first quarter," said Chairman Tim Stevenson. For the year as a whole, the group expect that growth in Environmental Technologies and Fine Chemicals divisions will be offset by continued weakness in the Precious Metal Products division.
Headquartered in central London, Johnson Matthey is a specialist chemicals manufacturer whose activities are divided between three divisions: catalysts (manufacture of automotive catalytic converters, pollution control systems and components for fuel cells), manufacturer of pharmaceutical compounds and refiner and distributor of precious metals such as platinum and gold. Its stock is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Numis upgrades Johnson Matthey from add to buy, target price unchanged at 2660p
When is the ex divi date? does this date apply for the special divi too?
Positive Points: Within the group's Environmental Technologies division, Emission Control Technologies' sales grew by 21%, benefiting from good growth in sales of light duty catalysts, growth in global vehicle production, and a substantial increase in demand for heavy duty diesel catalysts, particularly in North America. Despite current global economic uncertainties, management conveyed its desire to continue to expand its manufacturing capacity around the world and to invest further in R&D, remaining confident of the group's continuing growth potential. Johnson Matthey would benefit from tightening emission legislation which is driving demand for auto catalysts and emission reduction technology. The group's Fine Chemicals Division exceeded expectations with sales up by 16% and operating profit 24% higher, supported by a very strong performance from its API manufacturing businesses. Subject to board approval, the group said it would pay a special dividend to shareholders of 100 pence per share, on top of a full year dividend of 55 pence, up 20%. The one-off payment will amount to a total of £212 million.
Negative Points: The group's Precious Metal Products division's performance is dependent upon precious metal prices and should the recent fall in prices continue, this, will impact on the division's services businesses. Johnson Matthey's performance is closely linked to the automotive industry. A stalling of the recent recovery in the US and European autos volumes would negatively impact sales estimates. The UK and Europe currently account for around 35% of group sales. Higher rare earth prices can adversely impact profit margins. Worldwide, the group had a net pension deficit of £169.4 million at 31 March 2012 (2011 - £130.4 million).
Financial Highlights: Underlying profit before tax rose 23% to £426 million from £345.5 million a year earlier. Revenue saw a rise of 20% to £12 billion, exceeding market expectations. Excluding precious metals, sales rose 17% to £ 2.7 billion. A final dividend of 40 pence is recommended resulting in a full year dividend up 20% at 55 pence. As a result of the group's strong financial position, the board is also recommending a special dividend to shareholders of 100 pence per share. Net debt over the full year fell by £185.2 million to £454.2 million.
Full year results: Chemical and precious metal group Johnson Matthey said it continued its strong performance in the year to the end of March with good growth across all three of its divisions. The performance was enhanced by the firm's leading position in heavy duty diesel catalysts, a very strong year from Davy Process Technology (which develops chemical process technologies and licenses them to customers in the oil, gas and petrochemical industries) and excellent progress in its North American Active Pharmaceutical Ingredient (API) manufacturing businesses. The group added that it remains confident that its strong position in markets with structural growth will allow it to make further progress in Environmental Technologies and Fine Chemicals in 2012/13. This, however, will be offset by a weaker performance from Precious Metal Products, if precious metal prices remain at current levels
Headquartered in central London, Johnson Matthey is a specialist chemicals manufacturer whose activities are divided between three divisions: catalysts (manufacture of automotive catalytic converters, pollution control systems and components for fuel cells), manufacturer of pharmaceutical compounds and refiner and distributor of precious metals such as platinum and gold. Its stock is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Platinum refiner Johnson Matthey hailed another year of strong growth as it delivered numbers ahead of market expectations and a special divi worth a quid a share. Revenue in the year to March 31st rose 20% to £12,023m from £9,985m the year before, comfortably ahead of market expectations of £11,213m. Underlying profit before tax rose 23% to £426.0m from £345.5m a year earlier, topping market forecasts of £11,213m. Statutory profit before tax, which does not take into account exceptional items, rose 58% to £409.3m from £259.3m.
Could someone please clarify -- Is the ex divi date the 13th June? If I buy before then will I get the 40p final dividend plus the £1.00 special dividend
"The outlook statement will be significant to gauge management's assessment on whether it anticipates any change to trading patterns, most probably expressed on a geographic basis," Dawson added.
"Expectations for group performance are for 2H [second half] slightly ahead of 1H2012," reveals Charles Stanley analyst, James Dawson.
On the corporate front, platinum refiner Johnson Matthey issues full year results on Thursday. Market expectations are for profit before tax of £405.1m on revenue of £11,213m. Earnings per share are seen rising to 143.85p, paving the way for an increase in the full year dividend to 52.94p.
The big name in the mix is chemicals group Johnson Matthey (JMAT), which reported substantial improvements in its Q3 update in February as sales rose by 22% between October and December 2011, and net debt shrank by £175m to £442m. Credit Suisse rated the stock a short term buy on May 29th ahead of finals, which means that for the time being worries over falling Platinum prices can be put to one side.
Apologies this is the rest of the broker note. The broker says that it prefers Belgian materials technology group Umicore in the long run but sees around a 12% potential upside to Johnson Matthey. In an earlier research report on Tuesday, the broker raised its target price on the stock from 2,350p to 2,400p.
Credit Suisse has maintained its long-term neutral rating for FTSE 100 speciality chemicals group Johnson Matthey but has given the stock a short-term buy trading call, recommending investors to build positions ahead of the full-year results on June 7th.
Shares in auto-catalyst group Johnson Matthey are now at their highest level since before Lehman Brothers' collapse. They are now a hold on valuation grounds. Robust demand for catalytic converters in Asia and North America propelled third-quarter profits 34% higher than the previous year. Sales rose 22%. The group also said that it expected profits in the second half would be higher than those seen in the first six months. Falling platinum prices have also freed up working capital, so net debt fell by £175m to £442m. The shares are trading on a March 2012 earnings multiple of 15.7 times, falling to 14.9 next year. The yield is 2.3%. Tipped at £20.38 in January, the shares are up 11% and are now a hold, says the Sunday Telegraph´s Questor team.
1/2/12 Speciality chemicals company Johnson Matthey (JMAT) announced year-on-year sales growth of 22% to 649 million pounds (excluding precious metals) for the quarter ended 31st December 2011, with underlying pre-tax profits up 34% to 104.3 million pounds. The firm's environment technologies division enjoyed good growth in Asia and North America, while the precious metals division had a more subdued performance, due to falling platinum prices. The group noted concern over the trading environment in the UK and Europe, which constitutes 35% of its revenues, but believes that better conditions elsewhere will help drive performance
Johnson Matthey Sell 11-Jan-12 £354,280.87 Lawrence C Pentz 17,730 @ 1,998.20p
Shares in platinum refiner Johnson Matthey are a "hold", reckons Questor in the Daily Telegraph. The shares are down 12% so far this year since they were recommended at £20.38 at the start of January, despite an impressive financial performance as investors continue to worry about the global outlook. The shares are trading on March 2012 earnings multiple of 13.1 times, falling to 12.3 next year. Given the continuing market uncertainty, the shares are a hold for now until we get some clarity on the euro.
The Times' Tempus column says, "If we are heading for a double-dip recession, then it is worth asking industrials such as Johnson Matthey just how they expect to cope this time around." The column notes that first-half sales rose 22% while profits increased by 19%. Meanwhile, the shares trade at almost 12 times’ earnings. "The long-term drivers, tighter environmental legislation for vehicles and demand for its process technologies division from Chinese coal and US gas industries, are still there. But the shares, after a recovery from about £15 last month, look to be about where they should be."
Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said: "Johnson Matthey continued to perform well in the first half of 2011/12 with growth across all of the group's divisions and a 29% increase in underlying earnings per share. The short term prospects for the global economy are difficult to predict. Nonetheless we believe that Johnson Matthey is well placed and we currently anticipate that the group's results in the second half will be slightly ahead of those for the first six months of the year. Notwithstanding current macroeconomic uncertainties, the drivers for our business remain robust. In addition, we continue to increase our investment in research and development to position the group for longer term growth."
Business Overview · Environmental Technologies Division made further good progress with sales up 22% and underlying operating profit 19% ahead · Emission Control Technologies' sales grew by 22%, benefiting from good growth in its heavy duty diesel business · Sales in Process Technologies were up 26%. Davy Process Technology had an excellent start to the year and Intercat is performing ahead of our expectations · Precious Metal Products Division's sales increased by 9% as its Services businesses benefited from higher average precious metal prices and its Manufacturing businesses saw continued growth in demand · Fine Chemicals Division performed well with sales up 16% driven by increasing demand for its active pharmaceutical ingredients