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[June 2002]
Johnson Matthey Financial Highlights
For the year ended 31 March 2002, total turnover (before exceptional items and goodwill amortisation) for Johnson Matthey was £4.830 billion, down 18%. Sales excluding precious metals amounted to £1.093 billion, up 12%. Operating profit (before exceptional items and goodwill amortisation) was £193.3 million, up 10% and profit before tax was £187.2 million, up 4%.The operating profits for the Colours & Coatings Division were 21% down on last year at £25.5 million, as the result of intense margin pressure and difficult market conditions, particularly in the third quarter. The 2001/02 period saw the completion of expansion projects to serve growth markets in the tile and glass businesses. JM says that these are already delivering benefits.
However, the sharp decline in the tableware market necessitated a review of the division's UK business, which will result in the closure of its Meir facility in Stoke-on-Trent by early 2003 (as previously announced).
Chief Executive Chris Clark said: "Colours & Coatings experienced more difficult market conditions in 2001/02 but still managed to achieve margins of 10%. Our recent investment strategy has ensured that we are the world's lowest cost frit producer, enabling us to protect our margins.
"New frit facilities in Spain and Brazil are being commissioned and will be fully operational in the summer of 2002. We are also continually introducing new high margin products, particularly in Glass, where over 35% of turnover comes from products launched in the last two years. Having completed the current investment in our new facilities future investment is likely to be reduced, resulting in strong cash generation."
ENDS