Johnson Matthey (JMAT)

QUOTE AND NEWS
newratings.com  Oct 29  Comment 
Clariant AG: Clariant divests its Energy Storage Business to Johnson Matthey Clariant AG / Clariant AG: Clariant divests its Energy Storage Business to Johnson Matthey . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is...
newratings.com  Oct 1  Comment 
LONDON (dpa-AFX) - Specialty chemicals firm Clariant AG (CLZNY.PK, CRN.L, CLZNF.PK) Wednesday said it has agreed to divest its Business Line Energy Storage to Johnson Matthey Plc. (JMAT.L) for total consideration of $75 million at closing which is...
Mondo Visione  Jul 14  Comment 
At the twenty-sixth Annual General Meeting on 11th July 2014, Grant Angwin of Johnson Matthey was elected as the Chairman of the LBMA. Grant has been a Member of the Management Committee since 2011. He has worked for more than 25 years for...
Wall Street Journal  Jun 5  Comment 
Johnson Matthey, a U.K.-based maker of autocatalysts, posted a rise in annual earnings, but cautioned that profit won't grow in the current year.
Wall Street Journal  Feb 11  Comment 
The U.K. chemicals supplier has appointed former BG Group executive Den Jones as its new finance director.
SeekingAlpha  Feb 4  Comment 
Johnson Matthey PLC (OTCPK:JMPLY) Analysts and Investors Day 2014 January 30, 2014 03:00 AM ET Executives Neil Carson - Chief Executive Geoff Otterman - Division Director, Process Technologies Iain Martin - Technology Director,...
Automotive World  Jan 30  Comment 
Neil Carson has decided, after a highly successful decade as Chief Executive of Johnson Matthey, to retire in 2014. The board today announces that Robert MacLeod will succeed Neil Neil will formally step down as Chief Executive following the...
Automotive World  Jan 30  Comment 
Johnson Matthey today provides its third quarter Interim Management Statement covering the period from 1st October 2013 to 29th January 2014. Unless otherwise stated, figures quoted in this statement are for the quarter ended 31st December 2013....
Financial Times  Jan 30  Comment 
Chief executive of Johnson Matthey to step down after the FTSE 100 maker of catalytic converters reports improved outlook on revival of car production
Financial Times  Nov 21  Comment 
FTSE 100 engineering group benefits from higher demand for its emissions-reducing devices from global car and truck manufacturers




 
TOP CONTRIBUTORS

Johnson Matthey Plc (LON:JMAT) is a global specialty chemicals company that supplies products in environmental related initiatives, platinum group and precious metals, and pharmaceutical ingredients. It has three operating divisions: Environmental Technologies, Precious Metal Products and Fine Chemicals and operations in over 30 countries. In 2010, it acquired Intercat, Inc. and X-Zyme Biotechnology GmbH.[1] Its revenue is impacted by rising commodity costs, which lower profit margins for its precious metals division, and increased emissions trading regulation, which creates business for its environmental technologies division.

Business Growth

  • Revenue: In FY2011, revenue increased 27% from £7.84 billion in 2010 to £9.99 billion.
  • Net income: In FY2011, net income increased 14% from £228 million in 2010 to £261 million.[2]

Trend and Forces

Rise of emissions trading regulation and climate policy positively impacts JMAT's Emission Control Technologies division

With attention on the possibility of global warming, lawmakers are considering placing regulations on the amount of emissions to be produced from an organization or state. For example, in emissions trading (or a cap-and-trade scheme), companies or countries would face a carbon limit and would have greater incentives to reduce their emissions instead of buying excess emission credits. Established schemes include the Kyoto Protocol, European Union Emissions Trading Scheme, and Northeast US states' Regional Greenhouse Gas Initiative. However, as consumers demand more green products, more regulations are being considered.[3] This would benefit JMAT's revenues as it is a large manufacturer of catalyst systems for the reduction of emissions from industrial processes and for vehicle exhaust emission control. In 2011, JMAT's environmental technologies division made up 67% of its sales and increased demand for this division's products could have a significant impact on JMAT's sales.[1]

Increases in commodity prices negatively impacts JMAT's profitability in its Precious Metal division

The price of energy and commodity raw materials (such as platinum group metals, steel, aluminum, copper, zinc, etc.) has risen in the past few years. For example, due to increased demand and less production, the cost of European hot-rolled steel coil rose 25% in the first quarter of 2010.[4] In addition, due to turmoil in the Middle East in 2011 and reduced oil production, energy prices have increased drastically, rising 28% from 2010 prices and continuing to increase.[5] Manmade and natural disasters can also disrupt the supply of commodities and increase prices. Because JMAT is reliant on commodity supplies for its precious metal products, a disruption in the supply and price of commodities can decrease its profitability as JMAT isn't able to immediately pass on higher costs to its consumers.[1]

Competition

Johnson Matthey has a diversified portfolio of services so no one business competes directly with all of its services. However, its "green" initiative approach to its products, unlike that of BASF and DuPont, allows it a niche position in the market, especially as there is increased pressure to move towards more environmentally friendly products.

References

  1. 1.0 1.1 1.2 Johnson Matthey 2011 Annual Report
  2. Johnson Matthey 2011 Financial Statements
  3. http://www.reuters.com/article/2011/07/11/us-carbon-schemes-idUSTRE76A2GJ20110711
  4. http://www.bloomberg.com/news/2011-05-11/arcelormittal-posts-1q-ebitda-of-2-6-billion-beating-estimates.html
  5. http://www.bloomberg.com/news/2011-04-18/fed-s-fisher-lockhart-say-rising-oil-prices-threaten-growth.html
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