Johnson Matthey Case Study Example | Topics and Well Written Essays - 2500 words

Johnson Matthey - Case Study Example14 amalgamated Income Statement15Consolidated and P atomic number 18nt Company Cash Flow Statements16PART AFinancial Analysis1. Company SummaryJohnson Matthey is a speciality chemicals company. Focusing on its core skills in catalysts, fine chemicals and precious metals, the companys main activities be organized through its Environmental Technologies, Precious Metals and Fine Chemicals & Catalysts Divisions. Johnson Matthey manufactures catalysts, befoulment control systems, and fine chemicals, engages in the improve and fabrication of precious metals and produces active pharmaceutical ingredients (Annual Report, 2009).Important strategical acquisitions are the acquisition of Argillon Group in February 2008 the selling of non-core Insulators and Alumina businesses to Lapp Insulator GmbH & Co in November 2008 the acquisition of the 49% Alfa Aesar China Limited in March 2009 (Google Finance, 2009) The common stock trades on the London downslope Exchange (LSE JMAT.L).2. Strategic Objectives (Annual Report, 2009)For 2009/2010, Johnson Mattheys strategic objective is to give way consistent growth in meshing by developing high added value products and services. The company aims at further supporting R&D and financial backing organic growth. Although opportunities for growth are on the agenda, the company plans on reducing capital expenditure to generate more cash.The groups financial objectives areachieving constant and above average growth in earnings per doweryachieving an ROI above the groups cost of capitalachieving a 20% ROA for all its divisionsmaximizing dividends in line with earnings to ensure sufficient funds are retained to support organic growthThe priorities given in strategic direction are Focusing on its core skills in the... The paper concludes that Johnson Mattheys financial statements are clearly structured, facilitating the companys financial analysis. Also, non-financial statements communicate the grou ps quality, innovation and efficiency to shareholders in a comprehensive way that identifies the companys strategic objectives.Johnson Matthey is a speciality chemicals company. Focusing on its core skills in catalysts, fine chemicals and precious metals, the companys main activities are organized through its Environmental Technologies, Precious Metals and Fine Chemicals & Catalysts Divisions. Johnson Matthey manufactures catalysts, pollution control systems, and fine chemicals, engages in the refining and fabrication of precious metals and produces active pharmaceutical ingredients (Annual Report, 2009).Important strategic acquisitions are the acquisition of Argillon Group in February 2008 the selling of non-core Insulators and Alumina businesses to Lapp Insulator GmbH & Co in November 2008 the acquisition of the 49% Alfa Aesar China Limited in March 2009 (Google Finance, 2009)For the fiscal year ended 31 March 2009, Johnson Mattheys revenues increased 4.66% to 7,847.8m.