Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Johnson Matthey said on Thursday it plans to exit its battery materials business due to intense competition and low returns, while warning on annual results and announcing the departure of Chief Executive Officer Robert MacLeod.
The chemicals maker has appointed Liam Condon, the head of Germany’s Bayer crop science unit that includes Monsanto, to replace MacLeod. After almost eight years in the role, MacLeod will be stepping down in February.
Earlier this week, Bayer said Condon would quit at the end of the year following disappointing results.
Johnson Matthey, which makes pollution filters for cars, has also warned that annual results would be towards the lower end of market expectations as it takes a hit from supply chain disruptions caused by the global chip shortage as well as a labour crunch in the United States.
The London blue-chip company had laid out plans in May to spend up to 600 million pounds ($812.04 million) this financial year as it bolstered investment in battery materials and hydrogen technology to serve Europe’s growing electric vehicle (EV) market.
The board, however, has concluded that potential returns from the battery materials unit would not justify further investments. The company said it was looking at the sale of all or part of the unit, with the “ultimate intention of exiting”.
($1 = 0.7389 pounds)
(By Yadarisa Shabong; Editing by Sherry Jacob-Phillips)
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