Johnson Matthey PLC says sales materially below last year due to lower auto
China had driven a recovery in automotive production, while in Europe and the US there has been “a steady ramp up in demand”
’s () first quarter performance was “materially below last year” due to weaker demand for its catalytic converters by the auto industry.
Sales for its Clean Air division were down around 75% year-on-yer in April, 60% in May and 20% in June, for roughly a 50% decline over the quarter.
READ: Johnson Matthey cuts dividend and plans 2,500 job cuts amid coronavirus uncertainty
All plants are now operating, the FTSE 100 chemicals group said, with China driving a strong recovery in automotive production, while in Europe and the US there has been “a steady ramp up in demand”.
The division is expected to see sales decline 20% in July “with improvement through the remainder of the second quarter”.
With sales from other divisions “broadly flat”, generally a synonym for ‘slightly lower’, compared with last year, total group sales in the first quarter were still down “materially”.
In battery materials, the group’s new eLNO material should soon having five customers in full cell testing, comprising two automotive companies, two non-automotive and one automotive fuel cell manufacturer.
“Visibility on demand remains limited and we cannot provide financial guidance for the current year,” said chief executive Robert MacLeod in the statement issued ahead of the company’s annual shareholder meeting.
After announcing plans to cut 2,500 jobs in June, he said the group is on track to deliver £30mln cost savings in the current year, with 50% of the targeted redundancies within the next 12 months.
Shares in JMAT fell 2% in early trade on Thursday but by mid-morning were near flat at 2,255p.
Read More: Johnson Matthey PLC says sales materially below last year due to lower auto