Johnson Matthey PLC (LSE:JMAT) posted a loss in its latest half-year as it took a hefty write-down on its battery metal interests.
The chemicals and precious metals processing group warned earlier this month it was too far behind in the battery metals race to keep going and would sell its operation.
Robert MacLeod announced he was stepping down as chief executive at the same time.
Today’s interims included an impairment charge of £314mln for battery metals, which pushed the group £9mln into the red.
Without the one-off, underlying profits in the six months to September 2021 jumped 102% to £292mln, helped by higher platinum and gold proces and strong sales.
Revenues rose 23% to £8.6bn helped by the strong precious metal market even though supply and semiconductor shortages affected demand for the exhaust emissions convertors it makes for carmakers.
Going forward, Johnson Matthey said global auto production is forecast to decline 5% for this fiscal year - a 14% reduction since July.
Precious metal prices have also fallen, largely because of the lower demand from the automotive industry.
“We are also experiencing acute temporary labour shortages in the US that are adversely impacting our Health business.”
Discussions are underway about the sale of the health business said the statement, while the group today announced the sale of Advanced Glass Technologies for £178mln cash.
Brokers have already started to speculate the rest of Johnson Matthey may also be split up piecemeal following the appointment of Liam Condon as Macleod’s replacement.
Condon is known for ‘portfolio management’ one broker said. He takes over on 1 March 2022.
The interim dividend rises by 10% to 22p.