Source : EuropeanMarkets
Chief Executive Robert McLeod commented :
“I am pleased to report that Emission Control Technologies grew strongly in the first half and New Businesses made good progress. Challenging conditions in several of our other business areas have adversely impacted our performance and since the half year end we have taken action to reduce costs, particularly in Process Technologies.
We continued to focus on health and safety and our lost time injury and illness rate reduced. However, this was overshadowed by a tragic accident in July of this year when an employee at our Fine Chemicals’ facility in Riverside, USA suffered fatal injuries. This incident has further reinforced our efforts to achieve a world class health and safety culture across Johnson Matthey.
Despite the current environment of low platinum group metal and oil prices, and the more muted outlook in the chemicals markets that we supply, we expect the underlying performance of the group’s continuing businesses in 2015/16 to be similar to 2014/15. The full year outlook for the group is in line with current market expectations.
As a result of the group’s strong financial position following the two recent disposals, the board has agreed a special dividend of 150.0 pence per share in addition to the interim dividend of 19.5 pence per share.
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.”
Group Summary
Sales up 5% and underlying PBT 4% lower
Strong growth in Emission Control Technologies (ECT) and good progress in New Businesses
Challenging conditions in Process Technologies (PT) and Precious Metal Products
Actions being taken to reduce costs since half year end, mainly in PT; expect ~£30 million p.a. cost savings starting in Q4
Underlying EPS down 3%
PBT of £330.2m and EPS of 137.9p due to profit of £130.9m on sale of Research Chemicals
Strong balance sheet – net debt (including post tax pension deficits) / EBITDA of 0.7 times
Working capital improved by £386 million and cash flow conversion was 71%
Interim dividend of 19.5p, up 5%
Special dividend of 150.0p (£305 million) following sale of businesses
Full year performance for continuing businesses expected to be similar to 2014/15
