Johnson Matthey raised its full-year profit outlook for its core operations on Thursday, citing ongoing efficiency improvements and a boost from precious metal prices.
The British chemicals company said it now expects growth in underlying operating profit for the year to be at the higher end of its previous mid-single-digit guidance.
This outlook excludes the company's Catalyst Technologies business, which is being sold to Honeywell International Inc. and is now treated as a discontinued operation.
The company also reversed its forecast on market impacts, now expecting a net benefit of around 10 million British Pounds from precious metal prices and foreign exchange rates, compared to a previously guided 5 million British Pounds adverse impact.
For the first half ended Sept. 30, Johnson Matthey said it expects strong performance driven by its PGM Services business.
The update comes as the company implements a transformation strategy following a period of pressure from activist investors.
While the core business outlook improved, the company said underlying operating profit in the Catalyst Technologies unit is expected to be "materially down year-on-year" for the first half due to weaker demand and the timing of licensing wins.
The sale of Catalyst Technologies is expected to be completed by the first half of 2026, according to the company.
More from this issuer
Related coverage
Johnson Matthey has named ITV Chairman Andrew Cosslett as its new chairman, the company said on Thursday, in a move that follows a period of activist pressure.
Activist investor Standard Investments has nearly halved its stake in Johnson Matthey, a British chemicals and sustainable technologies company.