LONDON, Feb 4 (Reuters) - Johnson Matthey, theworld's biggest auto catalyst maker, said on Thursday its 20percent return on capital target remains, but it will bedifficult to achieve in the near term due to market conditions.
"A 20 percent return on capital will be difficult to achievein the next couple of years," Johnson Matthey's chief executiveRobert MacLeod said at an investor presentation.
The company paid out 150 pence a share on Wednesday, as aspecial dividend after selling its Gold and Silver Refining andResearch Chemical businesses last year.
Johnson Matthey makes most of its profits from the sale ofplatinum-rich catalysts for car emission-control devices. Italso refines and recycles platinum group metals (PGMs).
MacLeod said that the refining business remains strategic,despite low metals prices and expectations of further weaknessin the fourth quarter.
In its quarterly results on Wednesday, the company saidprecious metals products' sales fell by 17 percent to 76 millionpounds for the three-months to December.
Group sales totalled 736 million pounds ($1 billion), downfrom 745 million a year earlier.
The company remains positive on the longer-term demand forvalue added catalysts, due to tighter regulation on emissionsaround the world.
Johnson Matthey's technology focuses on reducing theprecious metals content in its catalysts, among other things.
Due to challenging conditions in several key markets,Johnson Matthey started a restructuring review last year,particularly in its Process Technology division, which sellscatalysts and technologies to the oil and petrochemical sector.
The restructuring, which involves job cuts, is expected tocut costs by 30 million pounds annually.
"We are on track with (saving) five million pounds in thefourth quarter," MacLeod said.
($1 = 0.6927 pounds) (Reporting by Clara Denina; editing by Pratima Desai andAlexander Smith)
Johnson Matthey (JMAT)
