26th Jul 2018 09:12
LONDON (Alliance News) - FTSE 100-listed speciality chemicals and sustainable technology firm Johnson Matthey PLC left its current financial year guidance unchanged after meeting expectations in its first quarter.
In the three months to June, Johnson Matthey's Clean Air business - focused on reducing car emissions - did well and outperformed vehicle production in "most" markets. The company's outlook is strong for the division for its current year ending next March, and it continues to expect margins to be unchanged.
Johnson Matthey's Efficient Natural Resources unit performed in line, with the business benefiting, mainly in the second half of its year, from cost savings and efficiency work. As a result, operating growth should outstrip sales growth.
Health sales in the quarter were "broadly" stable, with the Generics business declining due to some order timings and lower profit from sharing agreements. Guidance for lower annual operating profit year-on-year is unchanged, the company said.
Sales growth was solid in its New Markets sector, driven by higher demand for e-mobility. Johnson Matthey still expects both operating profit and sales year-on-year growth.
For its current year ending next March, Johnson Matthey is guiding for operating performance growth to be in the mid to high-single digits, with the second half to be stronger as is usual.
At current exchange rates, it continued, foreign currency is expected to provide a GBP7 million sales hit but bring a GBP1 million underlying operating profit boost.
Shares were 0.7% lower on Thursday at a price of 3,666.00 pence each.
Related Shares:
Johnson Matthey