Taxman happy, but Telkom cuts earnings

SOUTH Africa’s tax revenues jumped by 10.6% in fiscal 2013-14, due in part to tax changes that led to more people paying income tax, data showed. Revenue from VAT rose 8.7%, curbed by the sluggish economy. GOLD producer AngloGold Ashanti, which runs the world’s deepest mines, said it had completed six months without any fatalities, a first for a company that has struggled with the industry’s “zero harm” target. NEW vehicle sales rose 4.9% year-on-year in October to 59 384 units, data from the National Association of Automobile Manufacturers of South Africa showed. Export sales jumped 33% in October to 32 169 vehicles. BULLION producer Harmony Gold said its loss narrowed in the first quarter by 78%, to R226-million, as production rose. It also benefited from an increase in the rand gold price because of weakness in the domestic currency. BUSINESS activity expanded at the fastest pace in 22 months in October as output and new orders grew substantially, a survey showed. The HSBC purchasing managers’ index rose to 52.7, from 52.6 in September. TELKOM slashed its half-year earnings forecast by up to 70% from a year before, citing costs related to an ongoing restructuring process. It now expects earnings of between 390c and 455c a share. BUSINESS confidence fell to 88.8 in October from 89.2 in September, the South African Chamber of Commerce and Industry said, reflecting uncertainty as the economy tries to deal with headwinds. ELLERINE Holdings, the former furniture unit of failed lender African Bank, owes creditors R1.3-billion, nearly half of it to lenders including FirstRand and Standard Bank, documents showed. KUMBA Iron Ore said it expected headline and basic earnings to be at least R3.09-billion lower than headline earnings in the previous year of R15.44-billion and basic earnings of R15.45-billion because of softer prices. RATINGS agency Moody’s downgraded South Africa’s credit rating to Baa2 from Baa1, citing poor prospects for medium-term growth and rising public debt in the continent’s most advanced but ailing economy.