Johnson Matthey Plc said it will return about 305 million pounds ($465 million) to shareholders and cut costs at its unit supplying catalysts to the oil and gas industry after a slowdown in demand.
The British company is targeting savings of 30 million pounds from the restructuring of its Process Technologies business, it said in a statement Thursday.
The bigger-than-estimated special dividend is a reward for investors that have suffered a decline in Johnson Matthey’s share price amid concerns that the Volkswagen emmissions scandal will dent demand for diesel engines. Bank of America Merrill Lynch had estimated a payout of about 200 million pounds, it said in a note today.
Johnson Matthey traded 5.8 percent higher at 25.99 pounds as of 8:13 a.m. in London.