Why Johnson Matthey Is up 18% This Year

LONDON -- Johnson Matthey  (LSE: JMAT.L  ) has advanced 18% to 2,276 pence so far during 2012, making the share one of this year's best performers in the FTSE 100 (UKX).

The company, a leading specialty-chemicals and precious-metals business, seems to have impressed investors with a series of positive statements.

During February, Johnson Matthey published a third-quarter statement that said the group had continued to make further good progress.

Compared with the same period last year, Q3 sales (excluding precious metals) gained 22% to £649 million and underlying pre-tax profits increased 34% to £104 million.

The group also reported that net debt had been reduced by approximately £175 million during the quarter, due in part to a large inflow of customer-funded metal deposits.

During June, the company released its preliminary results for the year to March 31, 2012.

Revenues advanced 20% to £12 billion while underlying pre-tax profits surged 23% to £426 million. Underlying earnings per share gained 29% to 154 pence while the full-year dividend was lifted 20% to 55 pence per share.

Furthermore, the board also recommended a special dividend of 100 pence per share.

Then in July, the company reported there had been steady progress during its first quarter, and that sales (again, excluding precious metals) were up 6% to £657 million. Johnson Matthey also said its environmental technologies division had continued to perform well, with the subsidiary's sales for the quarter up 12% to £465 million and operating profit well ahead of last year.

Tim Stevenson, Chairman of Johnson Matthey, commented at the time:

Looking ahead, while visibility remains low, demand for the group's products is steady with growth in North America and Asia offsetting softer European markets. If market conditions and precious metal prices remain as they are today, the outlook for the group in the second quarter of 2012/13 is expected to be broadly similar to that of the first quarter.

Johnson Matthey's results for the six months to Sept. 30 will be published next week, which may reveal further encouraging news that could impress investors.

If you are seeking a potential blue-chip winner for 2013, "The One FTSE Share Warren Buffett Loves" showcases the British household name the legendary index-trouncing investor is backing today, and the investing logic behind his purchase.

You can read all about the famous corporate name Buffett currently favors by downloading this exclusive report today -- it's free!

Jon Wallis does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2117544, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:27:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement