Vehicle sales spurt drives up Johnson Matthey

Catalytic converter maker and precious metal refiner Johnson Matthey today showed it reaped the rewards of a recovery in vehicle sales and higher metal prices with a 14% jump in profits.

Revenues climbed 27% to £10 billion in the year to the end of March, pushing pre-tax profits up to £260.6 million, compared with £228.5 million a year earlier. However, shares in the FTSE 100-listed company fell 53p to 2028p as it warned it is suffering from the rising cost of rare earth, which is used in catalyst production. Johnson Matthey also predicted that the Japanese earthquake would hit car production in the first half of the year, although it believes production will bounce back in the second half.

The total dividend is up 18% this year, with a final shareholder payout of 33½p.