- Chemicals company Johnson Matthey upgraded its outlook on annual operating performance following a 'materially stronger' second-half recovery from the pandemic impact.

For the financial year ended 31st March 2021, underlying operating profit in 2020/21 is expected within the top end of the range of market expectations between £405 million to £502 million.

That would fall short of the 2019/20 underlying operating profit of £539 million.

A significant improvement in margin is expected in the second half to above 13%, nearly reaching pre-COVID-19 levels, driven by an improvement in volumes and early benefits from its transformation programme, the company said.

The brighter outlook comes as 'strength continued through the second half, with global auto production better than previous expectations,' the company said.

For the 2020/21 year, the translation impact of exchange rates on group underlying operating profit is expected to be negative £6 million, it added.

Johnson Matthey said it has commenced a strategic review of its health business.

The full year results are scheduled to be released on 27th May 2021.

Story provided by