Johnson Matthey a speciality chemicals company focussed on precious metals, catalysts and other fine chemicals, reported strong growth across all three operating divisions, Catalysts & Chemicals, Precious Metals and Colours & Coatings.

Commenting on the results, Chris Clark, Chief Executive of Johnson Matthey, said: "The group grew strongly last year and our businesses continue to perform well. As a result, we are investing significantly in the development of our technology and also in increased capacity, particularly for Catalysts & Chemicals. We are confident that the current year will again demonstrate the organic growth potential in Johnson Matthey. "

Summary Results

Catalysts and Chemicals Division (Inc. Autocatalysts, Fuel Cells)

Precious Metals

Colours and Coatings
Summary Results

The summary results are detailed below

Results

· Profit before tax excluding exceptional items up 25% to £180.3 million

· Operating profit up 20% to £175.0 million. All three divisions delivering strong organic growth

· Earnings per share excluding exceptional items up 22% to 58.1 pence

· Dividend for the year increased by 15% to 23.3 pence

· Strong balance sheet with net cash of £139.9 million

Business developments

· Major investment programme continues in autocatalyst, chemicals, pharmaceutical materials and fuel cells

· Site identified for fuel cell manufacturing at Swindon

· Growth in Precious Metals supported by buoyant market demand for platinum group metals

· Investment in growth markets producing good results in Colours & Coatings

· Surplus cash to be used to buy back shares

· Pursuing acquisitions to add to core businesses
Catalysts and Chemicals Division

Catalysts & Chemicals Division increased sales by 76% over the previous financial year to £1,503 million. This growth reflected increased sales volume and the effect of higher precious metal prices particularly that of palladium. Sales excluding the value of precious metals rose by 14% to £565 million. The division’s operating profit rose by 17% to £98.9 million.

The Catalytic Systems business, which encompasses Johnson Matthey’s global autocatalyst, heavy duty diesel and stationary source emission control businesses, performed very well, despite the widely publicised fall in vehicle sales in North America in the last five months of the financial year. Overall, global vehicle sales advanced by 1% but the autocatalyst market grew by around 6% benefiting from tightening standards and the geographical spread of regulations to control emissions.

Continuously Regenerating Trap (CRT TM ) and other heavy duty diesel products were also well up on last year as the result of increased retrofit activity around the world. This strong progress underlines the future growth opportunity represented by heavy duty diesel as emission standards tighten.

In March 2001 a new £10 million European autocatalyst facility was opened in Royston, UK. The 6,000 square metre plant produces more advanced catalysts to the higher specifications required to meet current and future emissions standards. The new factory has initial capacity to produce 3.5 million units a year, which will be needed to meet the rapidly growing demand for catalysts in Europe.

During the year additional production capacity has been installed to meet rapidly growing demand for autocatalysts in Asia. In early November a new autocatalyst plant was opened in India’s Harayana State, which more than doubled Johnson Matthey’s production capacity in this important market. A new autocatalyst facility in China will be officially opened later this month.