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Johnson Matthey FY20 Profit Down, Cuts Dividend; Plans 2,500 Job Cuts

Science and chemicals company Johnson Matthey Plc (JMAT.L) reported Thursday that its fiscal 2020 profit before tax fell 38 percent to 305 million pounds from last year's 488 million pounds.

Earnings per share declined 39 percent to 132.3 pence from 215.2 pence last year.

Underlying profit before tax was 455 million pounds, compared to 523 million pounds a year ago. Underlying earnings per share were 199.2 pence, compared to 228.8 pence a year ago.

Operating profit declined 27 percent driven by a restructuring and impairment charge of 140 million pounds and about 60 million pounds impact related to COVID-19.

Revenue, however, increased 36 percent to 14.58 billion pounds from last year's 10.75 billion pounds, driven by higher average precious metal prices.

Sales excluding precious metals edged down 1 percent to 4.17 billion pounds. Sales declined 2% at constant currency rates driven by Clean Air and Health, partly offset by higher sales in Efficient Natural Resources and New Markets.

Looking ahead, citing the ongoing uncertainty amid Covid-19, the company said it is unable to provide financial guidance for 2021.

Further, the board is proposing a final dividend for the year of 31.125 pence, representing half the level of the 2018/19 final dividend.

Robert MacLeod, Chief Executive, said, "we are targeting additional annualised cost savings of at least £80 million by the end of 2022/23. We regret that this will lead to some job losses, which we estimate to be around 2,500 globally over the three year period."

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