Picture: 123RF/WELCOMIA
Picture: 123RF/WELCOMIA

Bengaluru — Specialist materials company Johnson Matthey  forecast annual profit at the top end of market expectations thanks to a recovery in the automotive market and said it had started a strategic review of its health business.

Shares of Johnson Matthey rose as much as 8% after the results update on Thursday.

Increased activity at vehicle makers, as well as cost control, will mean adjusted operating profits at the top end of the £405m to £502m consensus.

"As the world builds back greener following the pandemic, we have an important role to play in helping society address climate change through our sustainable technologies," CEO Robert MacLeod said.

Macleod said the second half was “materially stronger” as activity in its end markets picked up again.

Global vehicle production in the second half of the year was better than earlier expectations, the company said. However, the Clean Air unit, its largest, had been hit by repeated coronavirus-led closures in the first-half and annual performance is expected to be moderately below prior year.

The company's health division, which is under strategic review, is expected to perform better than the prior year, Johnson Matthey said, with new customer contracts for active pharmaceutical ingredients used in generic opioid addiction therapies.

Reuters 

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