Johnson Matthey Share Discussion Threads

[esg investor] 30/3/2020 06:59

I am reading £50 million miss on trading profits, net debt remains elevated at around £1.5 billion (as they say ratios similar to September 2019) and all clean air facilities closed except China.

[esg investor] 27/3/2020 14:14

The company has a March year, which means the financial year ends next Tuesday. will there be a trading update? Is is possible the company is still trading in line with the previous guidance given the economic turmoil?

[esg investor] 27/3/2020 10:02

Impact of COVID-19 on Global Auto Industry: Expect deeper decline than during the Great Recession
26 March 2020

[esg investor] 27/3/2020 10:00

In last years annual report, page 90, it says the company had undrawn committed bank facilities of £597 million. Net debt last March was £866 million, by September it had ballooned to £1.5 billion. not sure what form the new debt was in, but one wonders if the committed bank facilities are fully drawn, especially given the massive investment programme continuing in the second half.

[fuji99] 26/3/2020 12:16

ESG - This is the info related to the automotive segment. In total, JMAT supplies 14 various industries. - - -

[fuji99] 26/3/2020 11:17

ESG - No stock in the world (except pharmas working for Covid-19) would hold well under the present situation. However, JMAT being well diversified will hold far better than many. Regarding catalytic converters, JMAT delivers to almost any car manufacturer. There is a sharp slowdown but there will always be some car industry still manufacturing. For example China is not completely locked down.

[esg investor] 26/3/2020 11:02

fuji99 do you have any knowledge of the catalytic converter market? does the current downturn mean it has fallen off a cliff? why do you believe other areas like agriculture, medical and electronics equipment would be holding up in the current economic situation?

[esg investor] 26/3/2020 10:24

I see that was from the interim results over four months ago. Certainly a lot has changed since then. I think there are many questions that need to be answered, like the state of the catalyst converter market, supply chains, an update on the new manufacturing facilities, the groups financial position and outlook.

[fuji99] 26/3/2020 09:36

This is the last comments of their CEO: (We expect to deliver a stronger second half) " Robert MacLeod, Chief Executive, commented:
We continue to execute well against our strategy and delivered first
half operating performance in line with expectations. I was pleased
with the continued good sales growth, demonstrating our broad based
growth drivers, although operating profit was slightly down as a result
of one-off costs associated with manufacturing inefficiencies in Clean
Air in the first half.

We expect to deliver a stronger second half, primarily driven by the
absence of the one-off costs and seasonality in Efficient Natural Resources.
For the full year, we expect to deliver group operating performance
in line with market expectations.

Given our clear strategy, the strong foundations we have put in place
and the ongoing investment into the business for the longer term, we
remain confident about the future growth prospects across all of our
sectors, which will together drive mid to high single digit growth in
earnings per share over the medium term. Our focus remains on executing
our strategy, delivering on the ambitions that we laid out at our recent
Capital Markets Day and continuing to drive towards our vision to create
a cleaner, healthier world."

[esg investor] 26/3/2020 08:45

Of course I wish you were right. But the interim results were terrible and debt has been soaring. if they succeed in turning that trend around in this current economic environment, it would be something of a miracle.

[fuji99] 25/3/2020 23:10

Catalyst converters for example is just one segment of the business. Please check their website to see how diversified they are. From agriculture to medical and electronics equipment parts etc. A very diversified group, thus why it is very defensive and interesting for the long term. A good yield as well.

[esg investor] 25/3/2020 16:34

You think so? Correct me if i am wrong but isnt the company's main market the automotive sector and hasnt that market completely closed up?

[fuji99] 25/3/2020 09:51

Very attractive share price to enter. This is an excellent defensive and diversified chemical to hold for the long term. £30 is easily achievable + the dividend steady income.

[philanderer] 05/3/2020 11:17

BERENBERG CUTS JOHNSON MATTHEY PRICE TARGET TO 3300 (3600) PENCE - 'BUY'

[philanderer] 25/2/2020 13:50

Nice buy from the Chairman :-)

[philanderer] 18/2/2020 13:26

World-first low carbon hydrogen projects in the UK win £13m Government backing

[lurgy] 13/2/2020 15:49

The palladium market deficit widened to over 1 million ounces in 2019, as combined primary and secondary supplies grew only modestly, while auto-catalyst demand surged higher on the back of new [emissions] legislation in China and more stringent testing regimes in Europe,” Johnson Matthey said.

The palladium deficit is likely to deepen in 2020, as an increasing number of Chinese and European vehicles meet China 6 and Euro 6d legislation, respectively,” Johnson Matthey said. “This is expected to drive up global average loadings on gasoline catalysts and could lift world automotive demand above 10 million ounces

..both Europe and China expected to see further increases in average palladium loadings on gasoline cars this year,” said Johnson Matthey

Meanwhile, auto-catalyst demand fell 2% to 2.91 million ounces last year due to lower output of diesel cars and a delay in stricter heavy-vehicle emissions rules in China, Johnson Matthey said

The company said it expects increased loadings of PGMs in heavy-duty trucks in China and India due to stricter emissions rules

[plat hunter] 05/2/2020 19:04

More interesting that JM has been appointed supplier and distributor of hydrogen to the UK's first hydrogen highway (The M4).

[lurgy] 05/2/2020 14:15

this is actually what the article says:

Mr Hyett said one British company that should do well is Johnson Matthey.

The group makes most of its money from catalytic converters, which would be made redundant by electric vehicles, but it has invested heavily in the development and manufacture of battery material for use in electric cars.

[plat hunter] 05/2/2020 12:49

Electric Cars don't have or use Cat Converters though

[philanderer] 04/2/2020 18:24

'The stock market winners and losers of the electric car revolution'

Which stocks will be hit by the Government's commitment to ban the sale of all but electric cars by 2035?


...Mr Hyett said one British company that should do well is Johnson Matthey. The group makes most of its money from catalytic converters

[philanderer] 31/1/2020 10:04

Gloomy forecasts on Chinese auto output.

[philanderer] 30/1/2020 12:26

UK car industry slumps for third straight year as production hits lowest level since 2010

[philanderer] 27/1/2020 13:49

Bang.... downgraded by BOA Merrill from 'buy' to 'underperform'

[philanderer] 23/1/2020 00:14

Bang on support with a 3% yield on an unchanged dividend.