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UPDATE 2-Johnson Matthey Q1 profit fell 21 percent

Published 07/21/2009, 02:51 AM
Updated 07/21/2009, 02:56 AM
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* Catalytic converter sales down 30 percent in April, May

* Q1 sales, profit down 21 percent, expects similar for Q2

* Demand holding up in fine chemicals division

(Adds more on sales, chemical, platinum divisions)

LONDON, July 21 (Reuters) - British platinum refiner Johnson Matthey reported a 21 percent fall in pretax profit for its first quarter and said it expected the second quarter to prove similar on falling demand for automotive products. The world's leading supplier of catalytic converters for the automotive industry said on Tuesday sales volumes of autocatalysts in April and May were over 30 percent down year-on-year "but sales in other parts of the group were less affected by the recession".

Total sales fell 21 percent in the first quarter, hurt by poor results from its precious metals products division.

Johnson Matthey said the average price of platinum in the quarter was $860 per ounce, below that of last year, and demand for autocatalyst scrap recycling was weak, affecting the division's refining and recycling business.

The group's fine chemicals division put in a good performance, however, with demand holding up despite the global slowdown and additional income being gained from the generic version of ADHD drug Adderall, for which Johnson Matthey makes the active ingredient.

Johnson said in May that total demand from carmakers for platinum for catalytic converters dropped 8.2 percent last year, the first fall in auto industry demand for platinum since 1999.

Analysts forecast underlying earnings per share of 77.2 pence for the year to March 2010, down from 86.3 pence in 2008-09, according to Reuters Estimates.

Shares in the company, which have traded in line with other London-listed chemicals companies this year, closed on Monday at 1,229 pence, valuing it at 2.6 billion pounds ($4.3 billion). (Reporting by Victoria Bryan; Editing by Paul Sandle and Dan Lalor) ($1 = 0.6087 pound)

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