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(Sharecast News) - Sustainable technology company Johnson Matthey said it expected annual results to be in line with market expectations, but warned of continued supply chain disruption for its automotive customers and increased cost inflation.
In a trading update, the company said growth was driven by improved performance in its clean air division, where it saw increased activity in autos as end markets partially recovered.
"Clean Air full year operating performance is expected to be above the prior year reflecting a recovery in demand in the first half," the company said on Friday.
"However, volumes remain constrained by supply chain disruption across the industry, principally due to the continued shortage of semi-conductor chips which is impacting production across the global automotive market."
Johnson Matthey said it would seek to offset cost inflation through pricing and efficiencies.
The company on Wednesday secured a £400m loan from the UK government to boost research and development in sustainable technologies.
It added that it had little exposure to Russia, in light of the war with Ukraine.
"In terms of platinum group metal (PGM) supply, we are the world's leading secondary recycler of PGMs and are well diversified in our supply with little exposure to Russia. Overall for the group around one per cent of 2021/22 sales related to Russia, with a slightly higher proportion of operating profit given the mix effect in catalyst technologies."
