AECI expects headline earnings per share to rise up to 35%
SOUTH African-based explosives and speciality chemicals company, AECI, said in a trading update yesterday that it expected increased earnings when the group presents its half year results next week.
AECI expects its headline earnings per share (Heps) to be between 381 cents a share and 396c for the six months to end June. This would mean an increase of between 30 percent and 35 percent as compared to the same period in 2016.
“In compliance with the JSE listings requirements, shareholders are advised that for the half year to end June, AECI’s Heps is expected to be between 381c and 396c, that is 30 percent and 35 percent higher than the 293c reported for the half year to end June 2016. Earnings per share (Eps) is expected to between 380c and 394c, also 30 percent to 35 percent higher than the 292c reported for the prior corresponding period,” the group said.
AECI said in the prior corresponding period Heps and Eps were negatively affected by the settlement cost (non-cash) of AECI’s post-retirement medical aid liability. The post-tax effect of this was R98 million, or 93c a share.
AECI’s results for the period are expected to be revealed on or about July 26.
The revival in the agricultural sector might just help to put the group on the right footing.
AECI is focused on providing products and services to a broad spectrum of customers in mining, manufacturing, agricultural food and beverage and general industrial sectors.
The group operates in five different areas, which are mining operations, water solutions, agrochemicals, food additives and ingredients, and explosive and speciality chemicals.
In the six months to end June 2016, the business was negatively affected by a constrained environment in South Africa and abroad. This constrained environment led to lower profits as the group reported 42 percent decline in operating profit to R571m.
The company, which has operations in more than 20 countries, said both its core businesses of mining and agriculture had undergone a lean spell during the period with the fall in commodity prices and a drought that had crippled the agricultural sector in southern Africa. However, the revival in the agricultural sector might just help to put the group on the right footing.
At the beginning of 2017, the Crop Estimates Committee predicted that South Africa would record a harvest maize crop in this harvesting season with 15.63 million tons.
The group’s chief executive Mark Dytor said the drought had cost the company between R30m and R40m in the last period. The improved rainfall in summer should give the group’s agricultural business a much-needed boost.
Mark Dytor, the chief executive of AECI, said the improved rainfall in summer should give the group’s agricultural business a much-needed boost.