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Johnson Matthey keeps guidance unchanged after mixed first quarter

Johnson Matthey also announced that it has appointed a Tate & Lyle executive to lead its clear air division

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Johnson Matthey's clean air unit makes up the lion's share of earnings

Johnson Matthey PLC (LON:JMAT) left its full-year guidance unchanged despite weaker profit from the clean air division that makes catalytic converters and other pollution filters for both cars and trucks.

The chemicals group said the clean air unit, which makes up the lion’s share of earnings, delivered “robust sales” in the first quarter but higher costs will drag profits lower in the full year.  

The costs relate to completing a new plant in Poland to meet higher demand as well as the impact of delay to the implementation of China’s emissions legislation for new heavy-duty vehicles.

Sales in the efficient natural resources and health divisions were both lower, but the group expects the two units to deliver full-year growth in sales and profits.

“Our group guidance, at constant rates, for the year ended 31s March 2020 remains unchanged,” the Company said.

“We expect growth in operating performance at constant rates to be within our medium term guidance of mid to high single digit growth.”

Separately, the firm announced that it has appointed Joan Braca, the head of Tate & Lyle PLC’s (LON:TATE) food and beverages division, to lead its clear air division.

Braca will join Johnson Matthey in October as the, replacing John Walker, who will step down in March 2020 to ensure a smooth transition.

Prior to Tate & Lyle, Braca spent nearly 20 years in the speciality chemicals industry with Dow Chemical and the Rohm & Haas Company.

Quick facts: Johnson Matthey PLC

Price: 2806 GBX

LSE:JMAT
Market: LSE
Market Cap: £5.43 billion
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