Johnson Matthey set to profit from emissions scandal 0

Volkswagen Exhaust

UK company Johnson Matthey are the world’s largest manufacturer of metal catalysts used in car emission control devices. Thanks to the recent crackdown on European car emissions after the Volkswagen emissions scandal, the company is set to make some big profits.

They’re currently undergoing business restructuring and are planning to cut 200 jobs. The company have around 13,000 employees worldwide but in a bid to cut costs, some of those people will lose their jobs. It’s believed that the difficult conditions of certain markets have brought on this restructuring, particularly in the company’s Process Technology division.

Johnson Matthey recently sold off two of their businesses and has revealed they plan to pay their shareholders £305million ($466million) as a special dividend with the money they made from those sales.

As Reuters UK reports:

Top riser was Johnson Matthey, up 9.3 percent after the world’s biggest maker of metal catalysts for car emission control devices announced it would pay 305 million pounds to shareholders as a special dividend after selling two businesses.

It was set for its best session since 2008.

“The numbers are looking good, and with a special dividend we’re seeing confidence coming back. The earnings season hasn’t been that great, and we’ve seen some shockers. So people are taking heart from an update like this,” said Mark Priest, sales trader at ETX Capital.

The emissions-control system producers are expected to gain from the recent VW emissions scandal, which will increase profits for the company. The global car industry will be looking for more environmentally friendly vehicles as the emissions regulations will likely tighten.