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LONDON, Nov 28 (Reuters) - British metals and chemicals firm Johnson Matthey Plc reported a three percent rise in first-half profits on Thursday and said a recently acquired catalyst business would help in the second half.
"We expect the group, including a first-time contribution from the recently acquired Synetix business, to make continued progress year-on-year despite the weaker U.S. dollar and lower prices for palladium and rhodium," Chief Executive Chris Clark said in a statement.
Johnson Matthey announced the acquisition of the Synetix catalyst unit from fellow chemicals maker Imperial Chemical Industries for 260 million pounds ($402 million) in September.
The group, which operates in 34 countries and employs about 8,000 people, said profits before tax, exceptional items and goodwill amortisation for the six months to September 30 rose to 95 million pounds from 92.2 million last year.
Analyst forecasts ranged between 92 million and 96 million pounds.
Johnson Matthey said its Catalysts and Chemicals division, which makes catalysts to cut vehicle exhaust fumes, and its Pharmaceutical Materials division, which supplies ingredients to the drugs industry, posted strong growth.
Profit at the Catalysts and Chemicals division rose seven percent to 48.3 million pounds, while at the smaller Pharmaceutical Materials division, it was up 45 percent at 19 million.
Demand for pollution control systems has been increasing as governments tighten environmental laws around the world, which has helped cushion Johnson Matthey from slowing car sales.
But profits at its Precious Metals unit, which refines, fabricates and markets precious metals, were 13 percent below the same period last year at 25.4 million pounds due to lower prices and subdued trading in palladium and rhodium.
However, Johnson Matthey said demand for platinum remained strong.
Shares in the firm closed on Wednesday at 840 pence, valuing it around 1.8 billion pounds. The stock, down 12 percent since the start of the year, has performed broadly in line with peers in the chemicals sector during the past 12 months.