Johnson Matthey down as first half disappoints

The share price of FTSE 100 chemicals manufacturer Johnson Matthey (LON:JMAT) has dropped by 6.31% to 3,013p (as of 12:35 GMT) after it reported an 8% drop in profits before tax for the six months ended 30th September. Revenues for the period were up by 37% as it benefited from higher precious metal prices, but profit growth lagged behind.

CEO Robert MacLeod commented: “We continue to execute well against our strategy and delivered first half operating performance in line with expectations. I was pleased with the continued good sales growth, demonstrating our broad based growth drivers, although operating profit was slightly down as a result of one-off costs associated with manufacturing inefficiencies in Clean Air in the first half.

“We expect to deliver a stronger second half, primarily driven by the absence of the one-off costs and seasonality in Efficient Natural Resources. For the full year, we expect to deliver group operating performance in line with market expectations.

“Given our clear strategy, the strong foundations we have put in place and the ongoing investment into the business for the longer term, we remain confident about the future growth prospects across all of our sectors, which will together drive mid to high single digit growth in earnings per share over the medium term. Our focus remains on executing our strategy, delivering on the ambitions that we laid out at our recent Capital Markets Day and continuing to drive towards our vision to create a cleaner, healthier world“.