The bull case is easy. The tougher the rules about exhaust emissions, the more money there is to be made for Johnson Matthey.
This insight is easily gleaned from yesterday’s annual results, with Johnson Matthey’s emissions control technologies division — that’s catalytic converters to you and me — reporting a 21 per cent rise in underlying profits. And the latest European regulations governing the emissions of nitrogen oxides are tougher than ever.
Scratch the surface though and there may be trouble ahead for the company. Its results yesterday conceded that diesel’s share of the European car market was likely to fall from its present 52 per cent, albeit gradually.
Catalytic converters generate more than half of the group’s profits, with Europe representing the largest