29th Jul 2021 12:24
(Alliance News) - Speciality chemicals firm Johnson Matthey PLC on Thursday reported sales have returned to pre-pandemic levels while operating profit is ahead due to higher average precious metal prices.
Sales growth for the first quarter ended June 30 was 63% year-on-year, which Johnson Matthey attributed to increased demand in its Clean Air and Efficient Natural Resources divisions, which in turn benefited from higher precious metal prices and stronger end markets.
Due to the positive start to the year, the company said it now expects at least mid-teens percentage growth in annual underlying operating performance at constant metal prices and constant currency.
Johnson Matthey cautioned that, as things stand now, foreign exchange movements are set to hurt annual underlying operating profit by around GBP20 million. More positively, should metal prices remain at current levels for the rest of this year, it expects a full-year net benefit of about GBP65 million to underlying operating profit compared with the prior year.
"The year has started well, with a continuation of the good demand seen in the second half of financial year 2021," the company said. "Sales have returned to pre-pandemic levels, and operating profit is ahead driven by more volatile and higher average precious metal prices."
Johnson Matthey also announced the hiring of Rita Forst as non-executive director. Forst was previously at the Opel European division of General Motors Co and held roles in senior engineering, product development and management positions, including as vice president of Engineering for General Motors Europe.
Shares were down 0.8% at 2,994.00p in London on Thursday.
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Johnson Matthey