Johnson Matthey increases its 2016 interim by 5% and pays big special

DividendMax Ltd.

Johnson Matthey increases its 2016 interim by 5% and pays big special

Group Summary

Sales up 5% and underlying PBT 4% lower

Strong growth in Emission Control Technologies (ECT) and good progress in New Businesses

Challenging conditions in Process Technologies (PT) and Precious Metal Products

Actions being taken to reduce costs since half year end, mainly in PT; expect ~£30 million p.a. cost savings starting in Q4

Underlying EPS down 3%

PBT of £330.2m and EPS of 137.9p due to profit of £130.9m on sale of Research Chemicals

Strong balance sheet - net debt (including post tax pension deficits) / EBITDA of 0.7 times

Working capital improved by £386 million and cash flow conversion was 71%

Interim dividend of 19.5p, up 5%

Special dividend of 150.0p (£305 million) following sale of businesses

Full year performance for continuing businesses4 expected to be similar to 2014/15

Companies mentioned