Slump in an­nual earn­ings ex­pected

The Star Early Edition - - COMPANIES -

PPC, the listed ce­ment and lime pro­ducer, ex­pects its ba­sic earn­ings and head­line earn­ings a share for the year to March to be be­tween 85 and 95 per­cent lower than in the pre­vi­ous year af­ter ad­just­ment for the in­crease in the weighted num­ber of shares. This equates to head­line earn­ings a share of be­tween 16c and 5c com­pared with 107c for the year to March last year. Ba­sic earn­ings a share were ex­pected to be be­tween 18c and 6c com­pared with 117c last year. PPC said yes­ter­day that, on a nor­malised ba­sis, af­ter tak­ing into ac­count the in­creased weighted av­er­age num­ber of shares af­ter the rights is­sue and con­clu­sion of part of the com­pany’s BEE trans­ac­tion, earn­ings and head­line earn­ings a share were ex­pected to be 25 to 35 per­cent lower than the com­pa­ra­ble pro forma re­port­ing pe­riod at be­tween 50c and 43c. It said key con­trib­u­tors to the de­cline in prof­itabil­ity in­cluded higher fi­nanc­ing costs, a weaker trad­ing en­vi­ron­ment in South Africa and Botswana and the im­pact on net profit and ba­sic earn­ings a share in the year to March of a once-off ex­cep­tional profit made last year on the sale of non-core as­sets. PPC will re­lease its an­nual fi­nan­cial re­sults on Wed­nes­day. – Roy Cokayne

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