Johnson Matthey's Q1 dampened by FX, Amplats contract loss

Chemicals group Johnson Matthey said it made "progress" in the first quarter of its financial year despite currency headwinds and the loss of an important contract with platinum group Anglo American Platinum (Amplats).Sales were more or less flat over the year, when excluding sales of precious metal, totalling £749m in the three months to June 30th.The company said 10% growth in Emission Control Technologies to £444m was offset by the expected softening in the smaller Process Technologies and Precious Metal Products divisions, where sales fell 17% and 8% respectively. Sales in Fine Chemicals New Businesses were broadly flat.Underlying operating profit in the first quarter fell 11% to £103.6m, while underlying pre-tax profit declined 10% to £95m.When excluding the £50m impact of currency movements and the loss of £10m in commission income from Amplats, group sales increased by 9% over the year.Looking ahead, the company said that the demand for its products is "robust" and underlying trading is expected to be "good", as it maintained its guidance for the full year."We currently expect that the group's performance in 2014/15 will be broadly in line with 2013/14," Johnson Matthey said.BC