30th Mar 2020 09:17
(Alliance News) - Johnson Matthey PLC of Monday said it expects its trading performance for financial 2020 to be hurt to the tune of around GBP50 million amid the Covid-19 outbreak.
The stock was 4.2% higher at 1,832.50 pence each on Monday morning in London, making it the best performer in the FTSE 100 index.
The speciality chemicals firm attributed the loss of around GBP50 million to reduced demand in Clean Air, which serves the largely shut auto industry, as well as the delay of around GBP20 million worth of shipments caused by logistics challenges across its other business.
Johnson Matthey added that it has decided to temporarily close most of its Clean Air plants across the world, except in China. The closures come as result of its automotive customers announcing temporary closures of their manufacturing facilities because of lower consumer demand, in addition to governments ordering that all non-critical business activities be stopped.
The FTSE 100 company said it has not seen a material fall in demand in Efficient Natural Resources but added that some customers in Catalyst Technologies have delayed orders due to supply chain challenges. Other businesses which provide products for the health, pharmaceutical and agricultural sectors - such as the Health and Medical Device Components businesses - remain operational.
"Whilst there is significant ongoing uncertainty around the full impact of COVID-19 we are taking steps to manage our costs and cash flow. We have a high quality, resilient and diverse business portfolio; a strong balance sheet and good access to liquidity, and are further strengthening our financial position," said Chief Executive Robert MacLeod.
Johnson Matthey said it has cash of around GBP250 million and a GBP1 billion revolving credit facility in place until March 2025, of which GBP400 million is already drawn. Additionally, it has around GBP130 million available under other committed facilities.
Full unaudited results for its financial year ending March 31 will be released on May 28.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Johnson Matthey