Johnson Matthey eyes 9% plus full year EPS growth

24 January 2007 12:06  [Source: ICIS news]

LONDON (ICIS news)--Johnson Matthey expects underlying full year growth in earnings per share (EPS) to better the 9% achieved in the first half, chief executive Neil Carson said on Wednesday.

Carson said the outlook for the full year remains encouraging with catalysts growing well in the second half, which ends on 30 June, and precious metals trading offsetting the impact of the weaker US dollar.

The pharmaceutical materials business is also ahead of last year, he added, with continued recovery in the US.

The full year EPS growth estimate excludes profits from the disposal of the ceramics division announced in December. Underlying EPS growth in the 2005/06 financial year was 9%.

Johnson Matthey expects to sell the ceramics business for €226m ($294m) in cash and use the proceeds to buy back shares and fund bolt-on acquisitions, Carson told an analysts briefing. The disposal, due to be completed on 28 February, will be slightly dilutive to earnings this year, he added.

Johnson Matthey’s shares rose sharply in value in mid January on stronger investor interest. The shares were at 1503p at 11:29GMT on Wednesday, up 1.5% on the Tuesday close.

($1 = €0.77/£0.51)

By: Nigel Davis
+44 20 8652 3214

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