(Reuters) -British chemicals firm Johnson Matthey said on Thursday it expects its annual profit to come in at the higher end of its initial forecast range, buoyed by favourable precious metal prices and currency movements.
The company had previously forecast its underlying operating profit to grow by mid-single digits for the year ended March 31.
The upbeat trading update underscores the company’s turnaround efforts after it agreed to sell Catalyst Technologies in May, allowing management to focus on its core operations in clean air technology and precious metal services.
Precious metals prices including platinum and gold have rallied strongly this year as expectations of U.S. interest rate cuts, mounting political and economic uncertainty pushed investors towards safe haven assets. [GOL/]
If precious metal prices and exchange rates remain at current levels, it expects a 10 million pound ($13.36 million) net benefit to full-year operating performance, compared with a previously forecast 5 million pound adverse impact, the company said.
Johnson Matthey said it expects negative free cash flow for the first half ended September 30 but still forecasts an improvement from the previous year’s 169 million pound outflow.
The company said its Catalyst Technologies division, which was sold to Honeywell International for 1.8 billion pounds, will be reported as a discontinued operation for the 2025/26 financial year and it expects the deal to be completed by the first half of calendar year 2026.
Shares in the London-headquartered company rose as much as 3.1% at 2,110 pence in morning trade.
($1 = 0.7484 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Rashmi Aich)
