Johnson Matthey PLC said on Friday it anticipates its recently-ended financial year will meet market expectations, following a recovery for its Clean Air business.
The London-based chemical and technology company said for its year ended March 31, underlying operating profit was likely to meet market consensus expectations of around £549 million, within a range of £528 million to £572 million.
This would be around 8.9% higher than underlying operating profit of £504 million in financial 2021.
Shares in Johnson Matthey were up 1.9% to 1,930.00 pence each in London on Friday morning.
The FTSE 250-listed company said the growth has mostly come from an improved performance in Clean Air, where autos activity increased as end markets recovered. Efficient Natural Resources reaped the benefits of higher average metal prices, with operating profit expected to grow from the prior year.
The company increased investment into Hydrogen Technologies in an effort to ’scale up’ the business, which will result in an operating loss for the finacial year.
The company’s Health business came in below expectations, due to labour shortages and supply chain disruption. Johnson Matthey said the disposal of the business is expected to finalise towards the middle of 2022.
Johnson Matthey noted its platinum group metal supply has little exposure to Russia, and said overall sales attributable to Russia amount to around 1%. Operating profit attributable to Russia is ‘slightly higher’ due to the mix effect in Catalyst Technologies.
Looking ahead, the company noted the challenges of supply chain disruption, inflation and market volatility. ‘We are navigating this challenging period with a strong focus on enhancing our overall efficiency and disciplined execution of our strategic priorities,’ Johnson Matthey said.
‘Longer term we expect the current geopolitical situation to drive a significant acceleration towards a net-zero carbon economy, with corresponding investment to position us for the significant growth opportunities from our sustainable technology portfolio.’
Annual results for financial 2022 will be released on May 26.
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