July 22 (Bloomberg) -- Johnson Matthey Plc, the producer of a third of all autocatalysts used to control vehicle pollution, expects car sales to increase this year and boost growth in its environmental technologies unit.

Global car sales ``might have come off a little bit but we're still expecting some growth,'' Chief Executive Officer Neil Carson told the annual general meeting in London today.

Pretax profit in the three months to June 30 rose 22 percent from a year earlier as revenue grew 33 percent on increased demand for autocatalysts in Asia, London-based Johnson Matthey said today in a statement. Sales and earnings in environmental technologies were ``well ahead'' of last year, the company said, without providing figures.

Tighter emissions legislation around the world is driving catalyst demand for cars and trucks. Johnson Matthey also benefits from rising prices of platinum used in the catalysts. Platinum averaged 57 percent higher in April through June compared with the same period last year.

Johnson Matthey rose 70 pence, or 4.2 percent, to 1,738 pence in London trading, giving the company a market value of 3.7 billion pounds ($7.4 billion).

Catalysts and other products in environmental technologies will account for two-thirds of profit in five years, compared with half currently, Carson said in an interview. Increased auto sales in Asia, including China and India, will bring more business to Johnson Matthey at the expense of competitors, he said.

Asia Focus

``A very significant part of our growth in autocatalysts will come from Asia,'' Carson said. ``There's more interest in the environment.''

Environmental technologies in the year to March 31 had operating profit of 147.3 million pounds, out of a total 296.8 million pounds.

Johnson Matthey's 20 percent share of the autocatalyst market in Asia is forecast to climb one percentage point a year for the next five years as its 25 percent share in the U.S. falls, Carson said. Johnson Matthey has 40 percent of the European market, he said.

Johnson Matthey stock has dropped 7.6 percent this year as U.S. auto sales decline. Speculation of a buyout by Dow Chemical Co. sent the shares to a record in December. Earlier this month, Dow agreed to buy electronic materials maker Rohm & Haas Co. for about $18.8 billion.

Johnson Matthey is ``a potential trophy asset,'' said Peter Cartwright, an analyst in London at Evolution Securities Ltd. who rates the shares ``add.'' ``They're doing well where you would have expected.''

Profit growth for the year will probably slow to 15 percent, according to the median estimate of 10 analysts surveyed by Bloomberg News.

``The 22 percent growth is compared to the weakest quarter last year,'' Cartwright said.

To contact the reporter on the story: Claudia Carpenter in London at Ccarpenter2@bloomberg.net

Last Updated: July 22, 2008 12:09 EDT