LONDON (Alliance News) - Johnson Matthey PLC on Thursday said it will pay a special dividend to shareholders following the disposal of assets in the first half, as its pretax profit and revenue both rose despite mixed conditions in most of its markets, offset by a strong performance in its emission control unit.
The group said it will pay an interim dividend of 19.5 pence per share, flat year-on-year, but said it also will pay a special dividend for the half of 150.0p, following the disposal of businesses during the half. The total distribution to shareholders from the special payout will be GBP305.0 million.
The FTSE 100-listed platinum and chemicals company, which makes emission control systems, catalysts and fine chemicals, said its pretax profit for the six months to the end of September rose to GBP330.2 million, up from GBP207.8 million a year earlier, as revenue rose to GBP5.78 billion from GBP4.80 billion.
Johnson Matthey said it saw a strong performance in its Emission Control Technologies business in the half, driven by strong growth in Europe, due to tighter emissions legislation, along with good sales in Asian light duty markets. Process Technologies sales were broadly flat, with good catalyst sales to chemicals customers hit by a weak revenue mix and a reduction in licensing activity.
Sales for its Precious Metals Products division fell 15% in the half, with platinum prices hitting its platinum group metals refining and recycling business, while Fine Chemicals sales fell as good demand for catalysts was offset by weaker sales of active pharmaceutical ingredients.
Johnson Matthey said its full-year outlook remains in line with current market expectations, despite the tough conditions in platinum metal markets and the low oil price, along with a more muted outlook in the chemicals industry.
"Johnson Matthey remains well placed to benefit from major global sustainability drivers such as the continued drive to improve air quality, energy security, urbanisation and the increasing need for healthcare. The restructuring actions we are taking in the second half will benefit the group's results towards the end of our financial year and this, together with attractive key end markets, position the group to return to growth in 2016/17," said Chief Executive Robert McLeod.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Johnson Matthey (JMAT)