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JM Inspiring science , enhancing life Released : 08/04/2021 07:00:00 RNS Number : 7478U Johnson Matthey PLC 08 April 2021 Pre - close trading update and strategic review of Health business Johnson Matthey releases a pre - close trading update for the financial year ended 31st March 2021 , ahead of its full year results scheduled for 27th May 2021 . Trading Update And Strategic Review Of Health Robert MacLeod , Chief Executive commented : In what has been an extraordinary year , I would like to thank all of our employees for their dedication and efforts throughout this time . I am very pleased with the progress we made , particularly in the second half . As a result , group operating performance for the year is expected to be around the top end of market expectations , alongside continued strong management of working capital . In the year , we continued to execute our growth strategy at pace . We are driving cashflow from our more established businesses to invest in our suite of exciting sustainable technologies that will enable decarbonisation and enhance circularity , including our portfolio of eLNO battery materials and hydrogen technologies . We have commenced a strategic review of Health , as we continue to focus resources to maximise value for our shareholders . As the world builds back greener following the pandemic , we have an important role to play in helping society address climate change through our sustainable technologies , and we remain focused on commercialising these and delivering our growth ambitions . Update for the year ended 31st March 2021 In 2020/21 , group operating performance is expected to be around the top end of market expectations¹ , 2 . Following the disruption from COVID - 19 earlier in the year , our second half was materially stronger . This reflected increased activity in autos and other key end markets , and the actions taken to transform our business including tight cost management . Our strong operational performance has enabled us to continue to invest at pace into our strategic growth projects . Strategic review of Health business We continue to review our portfolio to focus on areas of greatest opportunity to maximise value for our shareholders . As part of that ongoing process , we are undertaking a strategic review of our Health business . Clean Air saw a strong recovery in demand Following the disruption from the pandemic at the start of the year , we saw a strong recovery in demand across all regions towards the end of our first half . This strength continued through the second half , with global auto production better than previous expectations . As a result , Clean Air full year operating performance is expected to be only moderately below the prior year . We expect a significant improvement in margin in the second half to above 13 % and approaching pre - COVID - 19 levels , driven by an improvement in volumes and early benefits from our transformation programme . In our final quarter , there was limited impact on automotive OEM customer production levels from the shortage of semi - conductor chips . As we transform Clean Air and ramp up our new highly efficient plants in Europe and Asia , we remain focused on driving efficiency and cash generation across our business . Notes : Unless otherwise stated , commentary refers to performance at constant rates . Growth at constant rates excludes the translation impact of foreign exchange movements , with 2019/20 results converted at 2020/21 average exchange rates . 1 . 2 . In 2020/21 , the translation impact of exchange rates on group underlying operating profit is expected to be negative c . £ 6 million . Vara consensus for full year underlying operating profit in 2020/21 is £ 469 million ( range : £ 405 million to £ 502 million ) . 2019/20 underlying operating profit was £ 539 million . By region , Asia was strong - particularly China - driven mainly by increased volumes from higher consumer demand supported by government stimulus , and inventory rebuild , as well as some benefits from China 6 legislation . In Europe and Americas , following the temporary disruption in the first quarter , there was a steady improvement in demand . We expect to see the benefits of the rebound in the US Class 8 truck cycle in 2021/22 , given the recent strength of orders in that market . Efficient Natural Resources performed strongly