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CRM - Ceramic Industries Limited - Trading statement for the six months ended 31 January 2012 CERAMIC INDUSTRIES LIMITED Registration number 1982/008520/06) (Incorporated in the Republic of South Africa) Share code: CRM ISIN: ZAE000008538 ("Ceramic" or "the Group") TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 JANUARY 2012 Ceramic is currently finalising its results for the six months ended 31 January 2012. In terms of section 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as a reasonable degree of certainty exists that the financial results for the period will differ by at least 20% from those for the previous corresponding period. Accordingly, shareholders are advised that the Group`s operating profit will be between 30% and 35% lower than the prior comparable reporting period. Headline earnings per share ("HEPS") and basic earnings per share ("EPS") are expected to be between 25% and 30% lower than the prior comparable period. South African tile operation Whilst production and sales volumes increased during the review period, intense margin pressure was experienced. In a deliberate strategy to retain market share the Group reduced prices to combat the impact of a sustained influx of cheap imported product. Above-CPI increases in input costs further eroded the local operation`s profitability. Australian tile operation Reduced consumer demand based on inability to meet the market`s fashion expectations and competition from imports led to an under-utilisation of capacity with a resultant increase in unit costs. Centaurus operated at a loss of R24 million for the period. Intensive remedial measures have been implemented at the operation, including a comprehensive restructuring of the senior management team. The Group Chief Executive Officer will provide additional support in this initial transition phase. These corrective interventions are expected to realise improved efficiencies in the business and further developments will be conveyed to shareholders in due course. Sanitaryware operation The disappointing performance reported by the tile division was partially offset by improved results from the sanitaryware division. Sales and production volumes increased and the operation succeeded in stabilising unit production costs at 2011 levels. This, together with a higher average selling price achieved largely from increased sales of higher value products, resulted in an improved margin. REVIEW OF RESULTS The information on which this announcement is based has not been reviewed or reported on by Ceramic`s auditors. PUBLICATION OF RESULTS The Group`s results for the six months ended 31 January 2012 are expected to be published on SENS on 08 March 2012. Vereeniging 17 February 2012 Sponsor One Capital Date: 17/02/2012 10:30:04 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.
