Johnson Matthey Looks to Expand

British metals and chemicals group Johnson Matthey Plc recently announced that it is looking at strategic acquisitions as it invests in capacity expansion across core activities to add to the scale of the group. It said it has sufficient cash and borrowing capacity to fund these opportunities out of existing resources.

Johnson Matthey also announced first-half results, including a 61.6 million pound (~US$99.4 million) profit before tax and exceptional items. Chief executive Chris Clark said that the firm continued to make good progress in 1999 with all core businesses performing strongly in the first half of the year, and prospects were encouraging.

Following a review announced in November 1998, Johnson Matthey now has three key operating divisions—catalysts and chemicals, precious metals, and colors and coatings. Clark said a rationalization program in colors and coatings would add four million pounds (~US$6.5 million) to profits in its next financial year and seven million pounds (~US$11.3 million) the year after.