Tees division’s boost as profits dip

Nov 25 2009 by jez Davison, Evening Gazette

THE Teesside division of global catalyst specialist Johnson Matthey achieved a steady sales performance as the group announced its half-year results today.

In the six months to September 30, overall group revenues fell 18% to £3.58bn while profit before tax and amortisation of acquired intangibles was 21% lower at £114.4m.

However at the group’s process technologies division - which is made up of UK operations at Billingham, Stockton and Clitheroe - sales excluding precious metals were 1% higher than in the first half of the last financial year.

The company attributed the local results to strong demand in China - especially for methanol catalysts that reduced the country’s reliance on oil imports.

The group warned, though, that the tough economic climate had led to delays in a number of projects within the division.

“While the long-term fundamentals for our process technologies businesses remain strong, the current economic environment has resulted in a number of projects experiencing short-term delays which have impacted the results of the business in the first half,” the company said.

Despite the overall results, the group said it had “performed well” in economic conditions that were “significantly worse” than in the corresponding period last year.

Neil Carson, CEO of Johnson Matthey, said: “Our strategy to develop our businesses on a global scale will continue to benefit us through exposure to the growth markets of China and India, helping to offset weaker markets in the United States and Europe. Whilst visibility remains limited in some of our end user markets, the group is well placed to benefit from economic recovery.”

He said the group was “well placed” to return to growth and would continue to invest in technology, manufacturing infrastructure and staff.