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Johnson Matthey PLC  -  JMAT   

Segmental Reporting Change and IAS 19 Restatement

Released 10:17 04-Jul-2013

RNS Number : 6074I
Johnson Matthey PLC
04 July 2013
 



 

 

 

 For immediate release on Thursday 4th July 2013

 

 

Segmental Reporting Change and IAS 19 Restatement

 

Segmental Reporting Change

As previously announced, with effect from 1st April 2013 the group has reorganised its management structure.  To reflect this new structure and to improve transparency to stakeholders, for the year ending 31st March 2014 the group will report the results of five divisions: Emission Control Technologies; Process Technologies; Precious Metal Products; Fine Chemicals; and New Businesses.  An unaudited segmental schedule showing the effect of this reorganisation on historic financial results is appended to this press release.

 

There is no change to the operating profit numbers at the group level as a result of this change.

 

The results of Emission Control Technologies Division for the year ended 31st March 2012 were distorted by the impact of higher rare earth prices.  In the first half of that year the group bore the impact of those higher costs but in the second half of the year the results benefited from action taken to reduce the impact of those higher costs.  This included a combination of thrifting, substitution for cheaper raw materials and negotiating price surcharges with its customers.

 

In the second half of the year ended 31st March 2012 the underlying operating profit of Process Technologies Division was impacted by restructuring costs in its UK AMOG business.

 

As previously reported, the results of Precious Metal Products Division for the year ended 31st March 2013 were adversely impacted by lower precious metal prices and volumes, and the results in the first six months of that year were further impacted by operational issues at our Salt Lake City gold and silver refinery.

 

The costs associated with our new business development group were previously included within corporate.  These costs have now been allocated to the New Businesses Division and corporate costs have reduced accordingly.

 

IAS 19 Restatement

With effect from 1st April 2013, the group is required to take account of the revised accounting standard, IAS 19 - 'Employee Benefits'.  This change impacts the group by amending disclosure requirements and replacing the expected return on plan assets and interest cost on plan obligations with net interest on the net defined benefit liability based upon the discount rate.  Schedules on the new structure showing the effect of this restatement on the group's results for the year ended 31st March 2013 and the half year ended 30th September 2012 are also appended to this press release and have been reviewed by our auditor.

 

 

Enquiries:

Ian Godwin

Director, IR and Corporate Communications

020 7269 8410

Robert MacLeod

Group Finance Director

020 7269 8484

Howard Lee

Headland

020 7367 5225

www.matthey.com



 

Restatement - Based on New Divisional Structure















2011/12


2012/13


H1

H2

Total


H1

H2

Total









Sales excluding precious metals (£m)







Emission Control Technologies

690.4

   779.2

1,469.6


   720.3

   741.0

 1,461.3

Process Technologies

   247.0

   249.7

   496.7


   251.3

   257.3

    508.6

Precious Metal Products

   234.8

   229.4

   464.2


   217.3

   206.5

    423.8

Fine Chemicals

   155.6

   155.9

   311.5


   153.6

   154.6

    308.2

New Businesses

       3.1

       2.5

       5.6


       1.8

     35.2

     37.0

Eliminations

   (38.3)

   (30.7)

   (69.0)


   (34.6)

   (28.6)

   (63.2)


















1,292.6

1,386.0

2,678.6


1,309.7

1,366.0

 2,675.7

























Underlying operating profit (£m)







Emission Control Technologies

     58.5

     98.8

   157.3


     81.2

     81.7

   162.9

Process Technologies

    43.1

    31.8

     74.9


     41.7

     50.6

     92.3

Precious Metal Products

     98.1

     87.6

   185.7


     59.6

     64.6

   124.2

Fine Chemicals

     35.1

     38.5

     73.6


     40.4

     36.1

     76.5

New Businesses

     (5.8)

     (6.8)

   (12.6)


     (8.7)

    (7.3)

    (16.0)

Corporate

   (14.3)

   (14.5)

   (28.8)


   (11.4)

   (13.7)

    (25.1)

















Underlying operating profit

   214.7

   235.4

   450.1


   202.8

   212.0

   414.8

Net finance costs

   (11.7)

   (12.4)

   (24.1)


   (11.6)

   (14.0)

   (25.6)

















Underlying profit before tax

  203.0

   223.0

   426.0


   191.2

   198.0

   389.2

























Return on sales (%)








Emission Control Technologies

     8.5

    12.7

     10.7


     11.3

     11.0

      11.1

Process Technologies

    17.4

     12.7

     15.1


     16.6

     19.7

     18.1

Precious Metal Products

    41.8

     38.2

     40.0


     27.4

     31.3

     29.3

Fine Chemicals

     22.6

     24.7

     23.6


     26.3

     23.4

     24.8

















Total group

    16.6

     17.0

     16.8


     15.5

     15.5

     15.5

























 

Year Ended 31st March 2013 - Post IAS19 Revised and New Divisional Structure









Emission 

Control 

Technologies 

Process 

Technologies 

Precious 

Metal 

Products 

Fine 

Chemicals 

New 

Businesses 

Eliminations 

Total 








£ million 

£ million 

£ million 

£ million 

£ million 

£ million 

£ million 















Revenue from external customers


               2,488.0

                  503.7

               7,368.0

                  332.1

                    37.0

                         -  

            10,728.8

Inter-segment revenue




                    69.1

                    11.5

               1,005.0

                    13.0

                       1.5

             (1,100.1)

                         -  





























Total revenue

        2,557.1

             515.2

   8,373.0

         345.1

             38.5

       (1,100.1)

10,728.8





























External sales excluding the value of precious metals

               1,460.5

                  497.2

                  381.9

                  300.4

                    35.7

                         -  

               2,675.7

Inter-segment sales




                       0.8

                    11.4

                    41.9

                       7.8

                       1.3

                   (63.2)

                         -  





























Sales excluding the value of precious metals

               1,461.3

                  508.6

                  423.8

                  308.2

                    37.0

                   (63.2)

               2,675.7





























Segmental underlying operating profit

                  163.5

                    92.4

                  124.4

                    76.6

                   (16.0)

                         -  

                  440.9















Unallocated corporate expenses





    (24.8)





























Underlying operating profit






     416.1

Major impairment and restructuring charges





    (17.4)

Amortisation of acquired intangibles




    (16.9)





























Operating profit





     381.8

Net finance costs






    (33.2)





























Profit before tax






     348.6





























Underlying profit before tax






     382.9

Underlying income tax expense





    (80.1)





























Underlying profit for the year





     302.8





























Underlying earnings per share - basic





 147.7p





























Segmental net assets

       1,010.3

           662.6

       330.7

          440.7

             78.2

               -  

  2,522.5















Net debt





  (835.2)

Post-employment benefits net assets and liabilities




 (243.9)

Deferred income tax assets and liabilities





    (37.0)

Provisions and non-current other payables





    (52.6)

Unallocated corporate net assets





       40.0





























Total net assets





  1,393.8





























Segmental capital expenditure

                    75.6

                    42.8

                    35.1

                    21.5

                       3.5

                         -  

                  178.5















Corporate capital expenditure





       13.5





























Total capital expenditure






     192.0





























Segmental depreciation and amortisation

                    60.9

                    21.3

                    18.3

                    19.7

                       2.5

                         -  

                  122.7















Corporate depreciation and amortisation





         3.9

Amortisation of acquired intangibles




       16.9





























Total depreciation and amortisation





     143.5





























Return on invested capital 1

16.4%

15.8%

44.3%

17.5%

-29.3%

                   -  

19.7%





























Segmental employee numbers

                  4,241

                  1,861

                  2,490

                  1,282

                     636

                         -  

                10,510















Corporate and Central Research





        485





























Total employees






    10,995





























1

For divisions: segmental underlying operating profit divided by the average of opening and closing segmental net assets.  For total group: underlying operating profit divided by average invested capital (total net assets plus net debt)

 

Half Year Ended 30th September 2012 - Post IAS19 Revised and New Divisional Structure








Emission 

Control 

Technologies 

Process 

Technologies 

Precious 

Metal 

Products 

Fine 

Chemicals 

New 

Businesses 

Eliminations 

Total 








£ million 

£ million 

£ million 

£ million 

£ million 

£ million 

£ million 















Revenue from external customers


               1,217.5

                  248.6

               3,259.3

                  165.1

                       1.7

                         -  

               4,892.2

Inter-segment revenue

          0.2

              6.9

     474.3

        5.4

         0.6

      (487.4)

      -  





























Total revenue





     1,217.7

        255.5

     3,733.6

         170.5

            2.3

      (487.4)

  4,892.2











































External sales excluding the value of precious metals

                  720.2

                  244.5

                  193.7

                  150.1

                       1.2

                         -  

               1,309.7

Inter-segment sales

             0.1

            6.8

       23.6

           3.5

            0.6

          (34.6)

          -  





























Sales excluding the value of precious metals

                  720.3

                  251.3

                  217.3

                  153.6

                       1.8

                   (34.6)

               1,309.7





























Segmental underlying operating profit

                    81.4

                    41.7

                    59.7

                    40.4

                     (8.7)

                         -  

                  214.5















Unallocated corporate expenses






     (11.3)





























Underlying operating profit






    203.2

Major impairment and restructuring charges






             -  

Amortisation of acquired intangibles





    (7.8)





























Operating profit






    195.4

Net finance costs






     (15.3)





























Profit before tax






   180.1





























Underlying profit before tax






    187.9

Underlying income tax expense






   (39.3)





























Underlying profit for the period






    148.6





























Underlying earnings per share - basic





 71.7p











































Segmental net assets

       930.0

        510.0

      348.1

       452.2

         29.9

             -  

2,270.2





























 


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Segmental Reporting Change and IAS 19 Restatement - RNS