Go Back Email this Link to a friend

DTA - Delta EMD Limited - Trading statement for the year ending 28 December

Release Date: 14/12/2010 12:57:02      Code(s): DTA
DTA - Delta EMD Limited - Trading statement for the year ending 28 December     
Delta EMD Limited                                                               
Incorporated in the Republic of South Africa                                    
Registration number 1919/006020/06)                                             
Share code: DTA   ISIN: ZAE000132817                                            
("Delta" or "the Group" or "the company")                                       
TRADING STATEMENT FOR THE YEAR ENDING 28 DECEMBER 2010                          
Delta shareholders are referred to the Group`s unaudited results announcement   
for the six months ended 27 June 2010 and the comments on prospects contained   
therein, dated 17 August 2010, and the Group`s trading statement released on    
SENS on 29 September 2010 relating to its results for the year ending 28        
December 2010.                                                                  
Shareholders are advised that the global EMD market remains soft and that       
global demand for EMD is not expected to recover before the last quarter of     
Further, the Rand denominated selling prices of Delta`s alkaline grade EMD      
remain unattractive due to the strength of the Rand and consequently Delta`s    
higher margin EMD sales have reduced.  The margins afforded on US dollar        
denominated sales have also reduced as a consequence of the strong Rand.        
The Group`s 2010 second half sales volumes are now expected to be less than     
during both the first half of 2010 and the second half of 2009, and the sales   
mix is expected to remain less attractive with a higher proportion of lower     
grade EMD sales.  The lower second half sales and production volumes do not     
support the desired recovery of manufacturing overheads; consequently,          
operating profit for the second half of 2010 will be reduced by the under-      
recovery of those overheads.                                                    
The sale of the plant site in Australia will not be completed during 2010.      
Demolition of the plant should be completed during December 2010 and the        
property will be marketed thereafter.  Market demand and prices for industrial  
property in New South Wales remain low.                                         
The Group`s full year result is expected to be in line with earlier guidance.   
The secondary tax on companies paid in connection with the company`s recent     
special dividend, together with anticipated trading profit and on-going costs   
in Australia, will result in a second half loss after tax.                      
Earnings after taxation for the full year ending 28 December 2010 are forecast  
to be between R116 million and R127 million (2009: R167 million).  Headline     
earnings after taxation for the full year ending 28 December 2010, are          
forecast to be between R60 million and R71 million (2009: R158 million).        
Earnings per share for the full year ending 28 December 2010 are forecast to    
be between 236 cents and 258 cents (2009: 341 cents), and headline earnings     
per share for the full year ending 28 December 2010 are forecast to be between  
122 cents and 144 cents (2009: 323 cents)                                       
Delta`s share of North American higher grade EMD market is expected to reduce   
during 2011 due to relatively high Rand denominated selling prices and          
customers` preference for lower cost material.  Consequently Delta expects      
lower higher grade EMD sales volumes during 2011 and a less attractive sales    
mix.  Additional sales volumes have been targeted in other markets to provide   
improved plant utilisation.                                                     
The forecast financial information on which this trading statement is based     
has not been reviewed and reported on by the Group`s external auditors.         
Delta`s results for year ending 28 December 2010 are expected to be released    
on SENS on 14 February 2011.                                                    
14 December 2010                                                                
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 14/12/2010 12:57:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.