There is gold in making platinum into catalytic converters for cars
The company’s stock is up 6 percent and Johnson Matthey is feeling quite bullish on its long-term profits and potential growth.
They grew their business by refining platinum, now used to fabricate catalytic converters, as well as distributing pharmaceutical products, according to a post by Clara Ferreira-Marques for Reuters news service.
The firm’s pretax profits are up 23 percent for the year ending last March, totaling 426 million pounds or US $659 million. These totals surpassed projections by 15 million pounds, following a 20 percent growth in company revenue directly attributable to sales of catalysts outpacing the growth of the global vehicle market.
As a consequence of this good news, Johnson Matthey is issuing its initial special dividend, at 100 pence a share, in addition to the annual dividend of 55 pence, thanks to their current balance sheet, even in the face of the volatile economic conditions in parts of Europe.
"We feel the company is in good shape and the long-term prospects of the group remain strong," Reuters quoted Finance Director Robert MacLeod as stating. This is even after taking the currently softer prices on precious metals into consideration.
MacLeod says the company is well positioned to continue its planned research and development along with capital outlays, as they scramble to stay abreast of the growing market for catalytic converters – especially for trucks. The company will revalue its stock after the 212 million pound payout, though the ratio won’t be announced until later this month.