Johnson Matthey sees an uncertain recovery for the automotive markets
FTSE 100-listed Johnson Matthey yesterday said first-half pre-tax profits fell by a fifth and the world’s largest supplier of catalytic converters warned that prospects for a recovery in global auto sales were uncertain.
“The timing of a return in consumer confidence and the impact of the expiry of car scrappage schemes will be key factors in driving demand in the months ahead,” the platinum refiner said. “Looking forward, visibility of global vehicle sales remains limited.”
Johnson Matthey said it anticipates its full-year results being in line with market expectations.
Underlying pre- tax profit for the six months to end September fell to £114.4m from £144.9m in the same period last year as revenue fell 18 per cent.
Analysts at Killik & Co said: “Although the numbers were in line with expectations and management expects full-year results to be in line, there remains a lack of visibility over the outlook.”
Market expectations for full-year pre-tax profit range between £222.5m and £239m.