Platinum refiner and precious metals group Johnson Matthey PLC (LSE: JMAT) issued an interim management today, saying revenue in the first quarter was 21 percent lower and pretax profit before amortisation was also 21 percent below the previous first quarter.
In a statement prepared ahead of today’s AGM, chairman Sir John Banham said: “Market conditions in the first quarter of our new financial year were similar to those in the final three months of 2008/09. Demand for automotive products was well down on the same period last year but sales in other parts of the group were less affected by the recession. The group's results were helped by favourable exchange translation and a lower interest charge compared with last year.”
Johnson Matthey's sales excluding precious metals for the three months to June 30 2009 were 11 percent below the same period in 2008, when market conditions were much more favourable.
Sales volumes of autocatalysts in April and May continued at the same level as in the previous three months and were more than 30 percent below the same period in 2008. Sales improved in June in both Europe and Asia, but were unchanged in North America.
The Precious Metal Products Division's performance in the first quarter was also below the same period last year. The price of platinum averaged US$1,180 per ounce which was US$150 per ounce higher than in the previous three months but US$860 per ounce below the same period in 2008. Demand for autocatalyst scrap recycling was weak which has affected the results of the platinum group metal refining and recycling business.
The Fine Chemicals Division was well ahead of last year in the first quarter. Demand for the division's products has been less affected by the recession than some other parts of the group and Johnson Matthey has received additional income from the generic version of ADDERALL XR which was launched in April 2009.
“In the second quarter of last year Precious Metal Products Division achieved strong results benefiting from very volatile conditions in the platinum group metal markets, which are unlikely to be repeated this year. Overall, we would expect results for the second quarter of this year to be similar to those in the first quarter,” the company said.
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