Johnson Matthey first-quarter sales in line, backs FY guidance

Johnson Matthey said on Thursday that first-quarter sales were in line with its expectations as the speciality chemicals group backed its guidance for the full year.

In a statement released ahead of its annual general meeting in London, the company said sales in the first quarter were led by its clean air sector, with growth in efficient natural resources and new markets, while sales in health were broadly stable.

Clear air had a strong start to the year as the company outperformed vehicle production in most markets, while in its efficient natural resources sector, the group delivered good growth in catalyst technologies, where demand for its methanol catalysts was strong, but licensing continued to be subdued.

In the health segment, JMAT's generics business saw a drop due to the timing of orders of speciality opiates and the reduction in profit shares. This was offset by increased sales in its innovators business.

In new markets, higher demand from e-mobility applications drove "significant" growth in the company's battery systems business. Sales of its LFP battery materials were broadly stable and JMAT said it still expects sales and operating profit growth in this sector for 2018/19.

The company's guidance for the year to the end of March 2019 at constant rates was unchanged. It continues to expect growth in operating performance to be in line with its medium-term guidance of mid to high single-digit growth. In addition, it expects the second half performance to be stronger, mainly reflecting its normal seasonality.

At 0950 BST, the shares were down 0.6% at 3,671p.