Car industry crisis puts the brakes on Johnson Matthey

The crisis in the global car industry claimed another victim as precious metals and engineering giant Johnson Matthey warned its second half profits will be unable to match those of the same period last year.

Johnson Matthey makes catalytic converters for vehicle exhaust systems. While it rode the boom over the past decade as economic growth combined with tighter emissions control regulations, the downturn is now starting to bite. Chief executive Neil Carson admitted profits for the year would now come in up to 15% lower than a year ago.

Peugeot and Honda are among many car companies shuttering plants and cutting jobs in Europe while the US automotive industry is on the brink of collapse.

In the first half of the year to 30 September sales revenues shot up 24% to £4.4 billion. Pre-tax profits were £140.3 million against £120.1 million a year earlier. The interim dividend is up from 10.6p at this stage last year to 11.1p.