AFE - AECI Limited - Trading Statement
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE & ISIN No. ZAE000000220
("AECI" or "the Group" or "the Company")
AECI`s customers in the core business sectors of mining and manufacturing
experienced an extremely turbulent trading environment in 2009, especially in
the first six months as the global economic crisis took its toll. It was only
towards year-end that volumes began a modest recovery, particularly in mining,
and commodity prices began to increase.
This improvement in trading conditions has continued into 2010, although volumes
are not yet at pre-crisis levels. The current rand/US dollar exchange rate also
continues to be a concern in the recovery of South Africa`s manufacturing sector
and its exports. This notwithstanding, with current sales volumes and commodity
prices and given that the cost bases of all Group businesses are now in line
with current levels of throughput, the Company expects that its actual earnings
per share ("EPS") and headline earnings per share ("HEPS") for the six months to
30 June 2010 will be at least 20% higher than those achieved for the first half
Another trading statement providing further guidance to shareholders will be
issued prior to the publication of AECI`s interim financial results on 28 July
2010, once there is greater clarity on the specific range of the improvement in
actual EPS and HEPS from the low base of 2009.
The forecast financial information on which this trading statement is based has
not been reviewed and reported on by the Company`s auditors.
12 May 2010
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 12/05/2010 10:00:02 Supplied by www.sharenet.co.za
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