Johnson Matthey predicted low-to-medium percentage growth for teens on Thursday this year, as automakers demand more emission filters and Asia faces tighter regulations, but the company warned the hike. metal prices could affect its cash flow.
One of Europe’s leading producers of automotive catalysts, Johnson Matthey saw a strong recovery in demand for its automotive emissions filters in the second half of 2020 after witnessing a collapse in the automotive sector during the first lockdowns.
The company’s underlying operating profit fell 6% to 504 million pounds ($ 711.45 million) for the year ended March 31, beating average analysts’ expectations.
Johnson Matthey, who is also engaged in the refining and marketing of platinum group metals (PGMs) used primarily by automakers, said the final automotive market remained uncertain due to potential disruptions due to shortages of fleas.
The UK company, which is trying to turn to battery materials and hydrogen technologies, also said capital spending is expected to be Â£ 600million for the year.
As part of its strategy to invest more in sustainable technologies, Johnson Matthey agreed last month with state investor Finnish Minerals Group to build a plant to produce cathode materials used in batteries for electric vehicles.