AFE - AECI Limited - Trading Statement Release Date: 28/11/2007 14:01:02 Code(s): AFE
AFE - AECI Limited - Trading Statement
(Incorporated in the Republic of South Africa)
Registration No. 1924/002590/06
Share code: AFE
ISIN number: ZAE000000220
("AECI" or "the Company")
As previously reported, AECI expects that earnings per share in the 2007
financial year will be significantly lower than the record results achieved in
2006. Headline earnings per share (HEPS) are estimated to be between 400 and
440 cents per share (48 to 53 per cent lower than the 853 cents per share
reported in 2006).
Attributable earnings per ordinary share are expected to be between 560 and
610 cents per share, or 26 to 32 per cent lower than the 829 cents per share
earned in 2006.
The main reason for the decline in earnings in 2007 is that 2006 earnings,
both headline and attributable, were boosted by an aggregate of 410 cents per
share as a result of two unusual transactions. The Company realised a large
gain on disposal of its Milnerton site equivalent to 200 cents in earnings per
share; and, in the second half-year, earnings per share were enhanced by 210
cents as a result of the creation of a Pension Fund employer surplus account.
Furthermore, 2007`s results have been impacted negatively by a provision for
the closure of parts of the SANS Fibres business currently estimated at 208
cents per share of which 95 cents per share will be included in HEPS. Against
this, the after tax profit on the sale of Dulux, the Company`s decorative
coatings business, has contributed 300 cents per share but this is excluded
from HEPS in terms of Circular 8/2007 issued by The South African Institute of
Chemical Services continues to grow at a fast pace, although, with increased
raw materials costs due to high oil prices, the rate of growth in the second
half of the year is slower than the first half. Trading losses at SANS Fibres
in the second half-year and lower profitability in African Explosives as a
result of reduced detonator volumes and delays in operating new equipment to
design capacity, mean that trading profit from continuing operations of the
Group is expected to be slightly lower than in 2006.
The information in this trading statement has not been reviewed and reported
on by the auditors of the Company. It is issued in terms of the Listings
Requirements of the JSE Limited, whereby a listed company must publish such a
statement as soon as it is satisfied that a reasonable degree of certainty
exists that the financial results for the period to be reported upon next will
differ by at least 20 per cent from that of the previous corresponding period.
The Group financial results for the year ending 31 December 2007 will be
published on Tuesday, 26 February 2008.
28 November 2007
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28/11/2007 14:01:02 Supplied by www.sharenet.co.za
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