AFE - AECI Limited - Trading Statement Release Date: 01/06/2012 07:05:01 Code(s): AFE
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 Company")
In compliance with the JSE Listings Requirements, shareholders are advised that,
for the six months to 30 June 2012, AECI`s headline earnings per share ("HEPS")
and earnings per share ("EPS") are expected to be more than 20% lower than those
for the prior corresponding period as a result of the following:
- AECI`s Broad-based Black Economic Empowerment transactions were effected
during the period, as reported in AECI`s results for the 2011 financial
year published on SENS on 21 February 2012, and in its Integrated Report
for 2011, issued on 19 April 2012.
HEPS and EPS will be reduced by the recognition of costs in terms of
International Financial Reporting Standards ("IFRS"). An IFRS 2 cost of
about R148 million will be recognised in respect of the AECI Community
Education and Development Trust and the accrual of a portion of the IFRS 2
cost in respect of the AECI Employees Share Trust. The combined effect of
these two charges alone will be a reduction in HEPS of 138cps. Furthermore
4,7 million AECI ordinary shares were issued in terms of the KTH
transaction, with this additional weighted average number of shares
diluting HEPS and EPS.
- Mining and manufacturing production have remained volatile in a demanding
global operating environment, with mining in South Africa experiencing a
number of disruptions.
- AEL Mining Services has experienced some raw material and production
difficulties at its nitric acid plants in Modderfontein and has also not
met the production targets set for its ISAP plant. Although the business
has responded appropriately, it expects that operating profit will be lower
than that achieved in the prior corresponding period.
AECI`s results for the half-year to 30 June 2012 are expected to be
released on SENS on or about Wednesday, 25 July 2012.
The forecast financial information on which this trading statement is based
has not been reviewed and reported on by the Company`s external auditors.
1 June 2012
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 01/06/2012 07:05:01 Supplied by www.sharenet.co.za
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