Last checked at 
(Sharecast News) - Johnson Matthey raised the outlook for its full-year underlying operating performance on Wednesday despite posting a drop in first-half sales and profit due to lower precious metal market prices.
For the year to the end of March 2024, the company now expects at least high single digit growth in operating performance at constant precious metal prices and constant currency, up from a previous forecast for at least mid single digit growth.
"This is underpinned by transformation benefits of circa £55m in the year," it said.
The improved guidance came as the company said revenue in the six months to the end of September declined 11% to £6.5bn, while pre-tax profit fell to £82m from £188m in the same period a year earlier.
The revenue fall was driven by lower average precious metal prices, it said. This was partly offset by strong growth in Hydrogen Technologies and further progress in Catalyst Technologies.
Chief executive Liam Condon said: "We are starting to see the benefits of the new strategy and transformation of Johnson Matthey. Against a backdrop of lower precious metal prices which affected headline profitability, we delivered good growth in underlying performance despite a challenging macroeconomic environment.
"Looking forward, we are on track to deliver good growth in underlying performance and I am excited about the opportunities that lie ahead. I am confident we will achieve our 2023/24 milestones and deliver on our strategy, creating sustainable shareholder value and benefits for all our stakeholders."
