Johnson Matthey's 2014 Annual Report covers all aspects of the company’s financial and non-financial performance including progress on our sustainability targets
About Johnson Matthey
Johnson Matthey is a leading speciality chemicals company.
We work together, applying our expertise in advanced materials and technology to innovate and improve solutions that:
- Are valued by our customers
- Optimise the use of natural resources
- Enhance the quality of life for the people of the world, both for today and for the future.
Our Vision and strategy
Our '3C' strategy will enable us to achieve our vision of building our 3rd century of value adding sustainable technologies. The strategy has nine building blocks and focuses on three powerful themes:
- Customer Focus
- Create Value.
2013/14 in summary
- Group performed well in 2013/14.
- Sales excluding precious metals up 11% to £3.0 billion.
- Underlying profit before tax 12% ahead at £427.3 million.
- Strategy review confirmed direction and identified areas of focus.
- Continued investment in R&D and expansion of capabilities.
- Group remains well positioned to deliver long term growth.
To us, good performance is not just about profit. It’s about running our business in the most sustainable way and we have five elements of sustainability which have a material impact on our business.
In 2013/14 we have made further progress towards building a sustainable business.
Emission Control Technologies (ECT)
ECT outperformed the growth rate in many of its markets with sales up 13% and underlying operating profit 25% higher, benefiting from:
- An improved product mix in our European light duty vehicle catalyst business
- Continued growth in Asia
- A good performance in heavy duty diesel catalysts in Europe driven by new legislation.
Process Technologies’ sales were 11% ahead and underlying operating profit grew by 10%:
- A good performance in its Oil and Gas businesses
- A mixed year in its Chemicals businesses with lower technology licensing revenues but good growth in catalyst sales
- The contribution of Formox which was acquired at the end of last year.
Precius Metal Products
Precious Metal Products’ sales were in line with last year and underlying operating profit was 5% ahead. The division was impacted by:
- The change in our contracts with Anglo American Platinum Limited
- Lower average precious metal prices
- Continued weakness in some of its Manufacturing businesses’ markets.
Sales in Fine Chemicals grew by 5% and underlying operating profit was 10% ahead, benefiting from sales growth in its higher margin API Manufacturing business.
New Businesses made progress with sales boosted by a full year’s contribution from Johnson Matthey Battery Systems. Slight increase in underlying operating loss.
In 2014/15 continued growth across the group will be offset by the adverse impact of the loss of commission revenue from Anglo Platinum and by the effect of foreign currency translation.
Consequently, we currently expect that the group’s performance in 2014/15 will be broadly in line with 2013/14.
As Johnson Matthey approaches its third century of operation, we continue to apply our expertise in advanced materials and technology to innovate and improve solutions for customers in new and existing markets.
The long term drivers remain in place and Johnson Matthey is well positioned to deliver growth for our shareholders through the creation of value adding sustainable technologies.