MurrAy & RoBErts flAGs EArninGs slump
CAPE TOWN – Construction and engineering group Murray & Roberts (M&R) has flagged a hefty loss for its half-year to end-December, hit by global supply-chain disruptions, while its still feeling the effects of the loss of its Australian construction unit Clough.
The company expects a headline loss per share of between 321c and 323c, a significant fall from headline earnings per share of 13c previously, with the group under pressure from the continuing effects of the pandemic and the conflict in Ukraine, especially on Clough’s portfolio of large fixed-price contracts.
M&R had placed Clough into business rescue in 2022, but it has since been sold to Italy’s Webuild.
A planned R4 billion sale of Clough to Webuild fell through in November, after failure to get agreement on an interim loan facility. M&R’s shares were unchanged at R2.65 on Monday morning, having fallen almost 80 per cent over the past year.
Aluminium group Hulamin has flagged a slump in its headline earnings for its year to end December, hit by prior year effects, including a lag in acquiring metal and selling it.
Fall
Headline earnings per share are expected to fall in a range of 41 per cent and 49 per cent to end-December, the company said in a brief statement.
In the prior year, the group had raised a deferred tax asset, positively affecting earnings by R115 million, while the group also was affected by a metal-price lag - a timing difference between purchasing and selling metal, which was R426 million in 2021.
In morning trade on Monday Hulamin’s shares were unchanged at R2.89, having fallen a third in the past year.
Asian markets sank Monday following a Wall Street selloff, as forecast-beating US inflation data reinforced expectations the Federal Reserve would continue to ramp up interest rates for some time.