Johnson Matthey profits pull firm over slump

Speciality chemical company Johnson Matthey said first-quarter profit jumped 47% as it recovered from a slump in demand, and forecast an improved full-year performance.

The platinum refiner and world's largest supplier of catalytic converters said April-June sales excluding precious metals rose 32% year-on-year, and were slightly ahead of the previous three months.

Falling demand for automotive products hit the group last year as the recession took its toll on sales.

Johnson Matthey, which profited from a precious metals price increase in the second half of 2009-10, forecast a strong first half earlier this year.

It said today that second-quarter sales would be slightly lower than in the first quarter but the outlook for the year was robust. "The outlook for the second half of the year still remains harder to predict but if demand remains at current levels our full year results will be well ahead of last year," chairman John Banham said.

The company said sales at its Environmental Technologies division were up 39% while its Precious Metals Products unit benefited from strong platinum prices.