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Financial Highlights: Johnson Matthey reported underlying profits before tax of £212.9 million, up 13% from a year earlier. Overall revenues improved by 31% to £6.41 billion. Net debt at 30th September decreased by £43 million (since the year end and was) £792.6 million. The board have proposed a 10% increase in the interim dividend to 17p per share.
Interim results: The multinational chemical and precious metal company declared a strong half year, driven by its Emission Control Technologies (ECT) division. The division, which encompasses light duty vehicle and heavy duty diesel catalyst businesses, benefitted from increased global car and truck production. That helped improve divisional sales by 13% to £815 million, with underlying operational profits of £94.2 million, up 16%. Process Technologies which provides licensed technologies, catalysts and other services to the chemicals, oil and gas sectors performed well in the period with sales up 15% and underlying operating profit up 17% due to strong catalyst demand and the contribution from Formox which was acquired in March 2013. Elsewhere, within Precious Metal Products, which had a poor first half last year, saw sales improve in line with a year earlier. Results from Fine Chemicals were in line with last year. In the second half, the group said its long standing arrangements with Anglo American Platinum Limited (Anglo Platinum) will expire on 31 December 2013 and this will impact profitability in the fourth quarter, however the company would also benefit from tighter European truck legislation
I have been trying to a company that will benefit from the massive increase in electric cars on the roads over the next 3 - 5 years. I am sure that this company makes the lithium ion batteries that will be in some of the major manufactures. Am I correct or am i way off?
buys , nice interest in this share today ,jmat looks to have the potential to rise more also amerisure looking good , well done to the long term holders of jmat this share price may rise more in future days
well today , good buying volume some nice buys coming in ,
you are talking to yourself
Neil Carson, the Chief Executive Officer (CEO) of chemicals group Johnson Matthey, exercised share options and sold them immediately afterwards on the same day the company impressed the market with its full-year results. Carson, who joined the company back in 1980 and became CEO in 2004, exercised 33,407 options and disposed of the shares at a price of 2,734p each, earning him a total of £913,347. The executive share options were granted back in 2003 and had an exercise price of 898p. Carson's total holding after the transaction stood at 213,271 shares. Johnson Matthey said on Thursday that underlying profit before tax was £389.2m in the year to March 31st, down 9.0% year-on-year but ahead of the £381m consensus estimate due to a better-than-expected performance in the Environmental Technologies division. Prior to the results this week, the stock had gained nearly 9.0% since the start of 2013
Positive Points: Overall, the company expects to make steady progress in 2013/14 notwithstanding the loss of revenue from Anglo Platinum. In the medium term, growth is expected to accelerate in 2014/15 and beyond, driven particularly by tighter vehicle emissions legislation and demand for Process Technologies' products, especially in China. The company continued with its expansion projects within Emission Control Technologies' where demand for high technology products are required for tighter emission legislation which is driving demand for auto catalysts and emission reduction technology. In March, Johnson Matthey acquired Forox, a leading global provider of catalysts. It will also enable the group to grow its position in the global petrochemicals market. In October, Johnson Matthey acquired the Axeon Group for £40.6 million in cash. Axeon is a specialist in the design, development and manufacture of integrated battery modules and systems.
Negative Points: Johnson Matthey accepted it had been a very disappointing year at its Precious Metal Products Division, particularly in its Services businesses, with sales 6% down and underlying operating profit 27% lower. The loss of the group's current contracts with Anglo American Platinum will also impact in the fourth quarter 2013/14 results warned management. 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. Net debt rose sharply to £835 million from £381 million, due to a combination of a special dividend payment, the acquisitions of Axeon and Formox, and a £40 million increase in working capital requirements.
Financial Highlights: Underlying pre-tax profits of £389.2 million were down 9% for the year ended 31 March but ahead of analyst expectations. Revenues dropped 11% to £10.7 billion (£12 billion - 2012). Lower average precious metal prices impacted on that division with revenues down 14% to £8.5 billion The board proposed a final dividend of 41.5 pence that would result in a 4% rise in the full year dividend to 57 pence. The company reaffirmed its strong balance sheet.
Full year results: London headquartered speciality chemicals and precious metals company Johnson Matthey acknowledged it had been a challenging year as it declared a drop in annual profits. Nonetheless it added that it remains very well positioned to grow the business over the medium and long term. Its shares rose more than 7% in early trade, and were the biggest gainer on the FTSE 100 index. The company accepted it had been a "very disappointing year" at its Precious Metal Products Division, particularly in its Services businesses, where sales were 6% down and underlying operating profit 27% lower. The division, primarily associated to platinum was impacted by lower metal prices, lower volumes and operational issues at the Salt Lake City refinery. The loss of its current contracts with Anglo American Platinum will also impact the group's fourth quarter 2013/14 results, added the group. Elsewhere, Johnson Matthey saw continued growth in Environmental Technologies Division with sales 2% ahead of last year and underlying operating profit 7% higher at £226 million. Emission Control Technologies (ECT) was impacted by the weak European car market but heavy duty diesel catalyst business continued to grow, it added. Process Technologies' sales were slightly ahead on last year while operating profit increased significantly, boosted by a solid result from Davy Process Technology (DPT). CEO Neil Carson said the current year would be a time of transition and the increase in dividend reflects a confidence in the group's medium term prospects. Based on the combined estimates of analysts covering the company,
Johnson Matthey: Morgan Stanley reduces target price form 2300p to 2200p retaining an underweight rating.
Johnson Matthey: JP Morgan reduces target price from 2350p to 2150p, while its neutral rating remains unchanged. Deutsche Bank cuts target price from 2700p to 2550p and keeps a buy recommendation. HSBC moves target price from 2400p to 2300p retaining a neutral rating.
Speciality chemicals group Johnson Matthey has agreed an extension of its metal supply deal with Anglo American Platinum and entered into a new contract, under which it will provide Anglo Platinum with platinum group metal market research services. The new agreement will result in a change to fourth quarter revenue, meaning the full year impact on the group will be a loss of commission income of �35m. The likely cost savings associated with any restructuring are expected to be relatively modest. Neil Carson, Chief Executive of Johnson Matthey, said: "Whilst we are disappointed to lose commission income, we are pleased that we are able to extend our long relationship with Anglo Platinum and secure an extension to our metal supply agreement. This will enable us to continue to service our customers with confidence."
Johnson Matthey: UBS lowers target price from 2285p to 2250p, while keeping a neutral rating. Citigroup reduces target price from 2650p to 2450p and downgrades from buy to neutral.
Mixed outlook The outlook for the Environmental Technologies division is "stable", with the company expecting to perform better in the second half than the first. Weak trading in Europe and Japan will continue but should be offset by "promising prospects" in the US. Meanwhile, the underlying performance of the Fine Chemicals division is expected to slip in the second half. "The group's steady underlying performance is expected to continue for the rest of the financial year and, in line with the guidance in our half year report, we continue to anticipate that the group's performance in the second half will be similar to that for the first six months of the year," the company said.
Speciality chemicals group Johnson Matthey reported that both sales and profits fell in the third quarter, while the outlook for the rest of the year remains mixed. "In a difficult market environment during the quarter, trading across the group was challenging," the firm said in a statement covering the three months to December 31st. Sales excluding precious metals (sales) were down 2.0% at £635m during the period. Meanwhile underlying profit before tax slumped 19% to £84.3m, mainly due to a change in the sales mix and lower volumes in Precious Metals. Johnson Matthey, the world leader in platinum distribution and the sole marketing agent for Anglo American Platinum (Amplats), said that the fall in volumes was partly attributable to Amplats's current restructuring programme announced earlier this month, in which is said that it would close several mines in South Africa. The chemicals group said that while platinum prices have risen as a result of the shake-up at Amplats, the planned reduction in mining volumes will "impact" its business.
Positive Points: Johnson Matthey would benefit from tightening emission legislation which is driving demand for auto catalysts and emission reduction technology. In October, Johnson Matthey acquired the Axeon Group for £40.6 million in cash. Axeon is a specialist in the design, development and manufacture of integrated battery modules and systems. The group reaffirmed its strong balance sheet. A rise in platinum prices would benefit the group's precious metals division.
Negative Points: 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 group is exposed to foreign exchange fluctuation. The UK and Europe currently account for around 35% of group sales. If precious metal prices fell sharply, it would negatively impact on Johnson Matthey's expected profits.
Financial Highlights: Sales excluding precious metals were 2% lower at £635 million. Underlying pre-tax profits for the period was £84.3 million, down 19% on the same quarter a year earlier. The group's debt increased by £44 million to £739 million in the period, principally due to the acquisition of Axeon.
Third quarter interim statement: Faced with a continued challenging market, Johnson Matthey reported earlier today that sales, excluding precious metals were down 2% when compared with the same period last year at £635 million. Underlying pre-tax profit was down 19% at £84.3 million. The group's emission control technologies arm, which makes catalytic converters for cars and trucks, saw sales fall 6% to £346 million, a situation compounded by a weakness seen in demand for diesel cars in Europe. Within its precious metals division, sales fell 7% to £128 million with lower sales being the contributory factor. "In line with the guidance in our half-year report (Nov 2012), we continue to anticipate that the group's performance in the second half will be similar to that for the first six months of the year," the company said. On balance,
Johnson Matthey: Morgan Stanley increases target price from 2070p to 2298p keeping an underweight rating.
Johnson Matthey: Credit Suisse raises target price from 2300p to 2400p and upgrades to outperform. JP Morgan reduces target price from 2620p to 2350p, neutral rating unchanged. UBS cuts target price from 2300p to 2280p, neutral recommendation kept. HSBC reduces target price from 2700p to 2400p, neutral rating reiterated.
Shares in chemicals group Johnson Matthey rebounded on Thursday morning following a sharp fall the day before, with Credit Suisse providing a lift after upgrading its rating for the stock from 'neutral' to 'outperform'. The stock dropped 5.8% on Wednesday after the company reported a 6% fall in first-half pre-tax profits and said that the performance in the second half will be similar to the first. Credit Suisse said that it recognised some negatives in the statement with low volumes seen in autos and metals, but thinks that the guidance for the second half is "conservative". The broker forecasts a second-half adjusted pre-tax profit some 5% higher than the first half due to seasonality and some improvement in platinum group metals prices. "We think the short-term negatives have now been flagged and are in the share price. Mid-term, we forecast good growth, and believe the shares are at a reasonable price." The shares are trading at 13.1 times full-year earnings, which represents a 19% discount to peer Umicore and an 18% discount to its long-term average of a price-to-earnings multiple of 15.5. The target price for the shares has been lifted from 2,300p to 2,400p.