London Markets: Johnson Matthey skids on warning and CEO exit, while Burberry slips on sales miss

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Johnson Matthey shares skidded as much as 20% on Thursday as the chemicals company issued a profit warning, said its chief executive was leaving and said it will sell its battery division.

The company JMAT, -18.42% said results in the March 2022-ending fiscal year will be at the lower end of expectations due to supply-chain shortages hitting the automotive industry and precious metals prices, with labor shortages also hitting its U.S. health business. Expectations were for a full-year underlying operating profit between £550 million ($738 million) and £636 million.

On battery materials, the company said it’s “rapidly turning into a high volume, commoditized market” and that its capital intensity is too high relative to large-scale, low-cost producers.

Robert MacLeod will retire after eight years, to be succeeded by Liam Condon, Bayer’s president of crop science.

Burberry BRBY, -5.82% was another faller, skidding 6% as the luxury retailer reported weaker-than-forecast 6% rise in comparable-store sales in the second quarter, even as it beat operating profit forecasts, paid a dividend and announced a £150 million stock buyback.

The broader FTSE 100 UKX, +0.44% advanced 0.4%, helped by metals producers as gold resumed its upward march following the stark acceleration in U.S. consumer prices.

Auto Trader AUTO, +13.16% shares jumped 13% after the U.K. and Ireland used-car advertising portal recorded its highest-ever half-year profit and revenue. Demand for used cars has skyrocketed since vehicle makers haven’t had enough parts to make new ones.

This article was originally published by Marketwatch.com. Read the original article here.

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