Johnson Matthey's positive update

Chemicals group Johnson Matthey yesterday revealed that its underlying performance for the full year is expected to be slightly ahead of previous company expectations after third-quarter profits rose by 34 per cent.

The company said sales - excluding precious metals - were up 22 per cent in the three months since 1 October.

Sales at the firm's fine chemicals division, which includes Macfarlan Smith, the opiate-based drug maker in Edinburgh's Gorgie district, rose by 10 per cent.

The group said: "Sales in the emission control technologies division were up 22 per cent compared with last year, driven by further growth in global light-duty vehicle sales, particularly in China, and the steady recovery of heavy-duty vehicle sales. Global car production was 5 per cent ahead year-on-year."