Chemicals firm Johnson Matthey PLC on Wednesday reported a first-half earnings decline on weaker precious metal prices, though it lifted its annual outlook.

The London-based firm said revenue in the half-year to September 30 declined 11% to £6.53 billion from £7.33 billion a year earlier. Pretax profit was 56% lower at £82 million from £188 million.

Johnson Matthey said results were hurt by ‘lower precious metal market prices as guided’.

The firm said: ‘In PGM Services, sales declined 16% primarily driven by lower average [platinum group metal] prices, and in particular palladium and rhodium, which declined 35% and 64% respectively compared to the prior period. PGM prices were impacted in the period by lower auto demand and the liquidation of excess rhodium positions. The average price of rhodium over the last three years to November 2023 has been $14,400 per troy ounce, peaking at $28,700 in early 2021. Since then, rhodium prices have declined and stabilised in recent months at around $4,300.

‘In our refineries, intake volumes continue to be down due to lower auto scrap resulting from a strong used car market. We expect this trend to continue through our second half. We have completed the expansion of our China refinery which is now fully commissioned and taking in feeds. Our metal trading business performed well supported by a volatile precious metal price environment, particularly in China.’

Johnson Matthey added that while ‘precious metal prices have stabilised recently, it remains difficult to predict how they may develop’.

The firm maintained its interim dividend of 22.0 pence per share.

Looking ahead, it upped its yearly outlook. It now expects ‘at least high single digit growth in operating performance at constant precious metal prices and constant currency’. It had previously expected mid single digit growth.

The better-than-expected outcome will be spurred on by transformation benefits of around £55 million in the year.

Shares in the company traded 2.9% higher at 1,501.50 pence each in London on Wednesday morning.

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