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[June 2005]
Johnson Matthey Annual Report
In its report for the year to 31 March 2005, Johnson Matthey said that its
Ceramics business had achieved sales of 166 million and contributed about
two-thirds of the profits of the group's Colours & Coatings Division. The
business supplies decorative materials for ceramic products, mainly
supplying the tile sector.The business achieved good growth in sales and profits in 2004/2005. Demand
for tiles in the Western European market was flat and the strength of the
euro adversely impacted European tile producers who are major exporters to
the other parts of the world. More than 50% of the tiles manufactured in
Italy and Spain are exported outside the euro zone. As a consequence,
prices and volumes in Europe remained under pressure.However, there was good growth in China, India and Brazil where Johnson
Matthey has production facilities and is well represented. Demand was also
strong in Eastern Europe, especially Poland and Russia, and sales into the
region showed good growth.The Ceramics business is realising the benefits of investments made in
recent years to position it as one of the lowest cost, high quality
producers in the world, affirmed JM. While growth rates in the more mature
markets like Western Europe are modest, the business is strongly cash
generative and there are a number of important growth opportunities in
Eastern Europe, the Middle East and Asia. During 2004/2005, the business
started work on the expansion of its manufacturing facility in China and it
has plans for further expansion in both China and India over the next few
years to meet rapidly growing demand in the Asia region.JM's supply to the tableware side of the ceramic industry is through its
Colour Technologies business. Following the announcement of the closure of
the decal factory in Stoke-on-Trent, England, the ceramic side of Colour
Technologies' business has been refocussed on a much reduced range of
decorative products for the tableware sector.Sales into this sector in 2004/2005 were at the same level as the prior
year, despite the continued contraction of the UK tableware market. Going
forward, added JM, the business has a small flexible team with innovative
products and a commitment to world class technical support and it is hoped
that it will see a return to growth from this much reduced base.www.matthey.com
ENDS