Another year of strong growth:

·     Revenue, up 20% to £12 billion

·     Sales excluding precious metals (sales) 17% ahead at £2.7 billion 

·     Underlying profit before tax and underlying earnings per share up 23% and 29% respectively

·     Return on invested capital (ROIC) increased from 19.4% to 22.3%

·     Balance sheet strengthens with net debt (including post tax pension deficits) / EBITDA of 1.0 times   

·     Final dividend of 40.0 pence recommended resulting in full year dividend up 20% at 55.0 pence 

·     As a result of the group's strong financial position, the board is also recommending a special dividend to shareholders of 100.0 pence per share 

Business Overview 

·     Environmental Technologies Division had a very good year with sales up 20% and underlying operating profit 29% ahead

·     Emission Control Technologies' sales grew by 21%, benefiting from good growth in sales of light duty catalysts, ahead of growth in global vehicle production, and a substantial increase in demand for heavy duty diesel catalysts, particularly in North America 

·     Process Technologies performed well.  Sales were up 19% boosted by another excellent year from Davy Process Technology and a good contribution from our Additives business (formerly Intercat), which was acquired in November 2010

·     Precious Metal Products Division also performed well, especially in the first six months of the year.  Sales were up by 8% and underlying operating profit was 16% ahead, with good demand for its manufactured products and refining services

·     Fine Chemicals Division exceeded our expectations with sales up by 16% and operating profit 24% higher, supported by a very strong performance from its Active Pharmaceutical Ingredient (API) Manufacturing businesses

Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:

"Johnson Matthey has delivered another year of strong growth with a good contribution from all of its divisions.  This performance was particularly enhanced by our leading position in heavy duty diesel catalysts, a very strong year from Davy Process Technology and excellent progress in our North American API Manufacturing business.  Underlying earnings per share in the year were 29% ahead of 2010/11 and the board is recommending an increase in the full year dividend of 20% and a special dividend of 100 pence. 

The group is well positioned for the year ahead and we remain confident that our strong positions in key markets will allow us to make further progress in Environmental Technologies and Fine Chemicals in 2012/13.  This, however, will be offset by a weaker performance from Precious Metal Products, if precious metal prices remain at current levels. 

In the longer term, we are continuing to expand our manufacturing capacity around the world and to invest in R&D.  We have strong positions in markets that will see structural growth over the next few years and, despite current global economic uncertainties, we are confident of the group's continuing growth potential."