Johnson Matthey Plc revealed that its annual profit increased due to higher car sales and precious metal prices. The group’s underlying pretax profit increased by 36 percent to 345.5 million pounds ($565 million). This group is the biggest supplier of catalytic converters in the world. It is also refines, markets and distributes precious metals.
The company disclosed that it is expecting that the March 11 earthquake in Japan will adversely affect vehicle production temporarily in the first half of this year but that this will probably be reversed during the next half.
In addition, the company stated that the higher prices of rare earth raw materials will also affect the business especially in the first half of this year. It anticipates that higher rare earth raw materials used in its catalyst production will have an impact on its results to go up by about three or four times from 5 million pounds in the next financial year to end March 2012.
Moreover, the company said that it took a restructuring and impairment charge of 71.8 million pounds in relation to the sale of its Vertec manufacturing business and the closure of a manufacturing facility in Brussels.
Credit Suisse has expressed disappointment stating that heavy exceptional items and amortization of 13.2 million pounds exceeded expectations. On another note, CEO Neil Carson stated that all of the company’s businesses were performing well and are expected to progress further in the next financial year.