http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.71Change: 0.13
R/$ = 10.88Change: 0.08
Au 1199.05 $/ozChange: -1.17
Pt 1245.50 $/ozChange: -0.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 08, 2012

Cables, African impairments knock Altron

Back
Altron CE Robert Venter on the poor performance of its East African converged services operations and the outlook for the unit. Camera Work: Nicholas Boyd. Editing: Darlene Creamer. Recorded: 8.5.2012
Construction|Engineering|Africa|Altron|Bytes|Eskom|R6.1|Africa|Kenya|Building|Equipment|Information Technology Subsidiary|Technology|Infrastructure|Robert Venter|Cables|Operations|Information Technology
Construction|Engineering|Africa|Eskom||Africa|Kenya|Building|Equipment||Infrastructure||Cables|Operations|
construction|engineering|africa-company|altron|bytes|eskom|r61|africa|kenya|building|equipment|information-technology-subsidiary|technology|infrastructure|robert-venter|cables|operations|information-technology
© Reuse this



Engineering and technology group Altron says it is giving “special attention” to turning around the underperforming Altech and Powertech units that contributed to the JSE-listed group’s sharp earnings decline in the year to end February 2012.

Group revenue rose 3% to R23.6-billion (R22.8-billion), but earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 7% to R1.9-billion (R2.1-billion), while adjusted diluted headline earnings a share declined 15% to 206c (243c).

Following “substantial impairments”, the group incurred a loss after tax of R79-million, from a profit of R699-million. Following “substantial impairments”, the group incurred a loss after tax of R79-million, from a profit of R699-million.There were goodwill impairments of R412-million, property plant and equipment impairments of R235-million and intangible impairments of R300-million.

Most of the impairments related to Altech's East African business, which totalled R589-million, while impairments in West Africa totalled R242-million. Altech had decided to disinvest from West Africa, while a turnaround strategy was being pursued at Kenya Data Networks, where a new management team had been assembled.

The results were also impacted by an increase in the effective tax rate as a result of non-recognition of various deferred tax assets on losses in the underperforming operations.

CE Robert Venter said that parts of Altech and Powertech experienced challenging times, while its information technology subsidiary Bytes emerged as the group’s largest contributor. Bytes reported an 11% rise in Ebitda to R527-million, despite flat revenues of R6.1-billion.

Altech’s overall results were negatively impacted by significant impairments in the East and West African businesses. Revenue increased by 3% to R9.97-billion, but Ebitda declined by 14% to R919-million. “We are disposing of the West African business and we have taken significant remedial action in Altech East Africa,” Venter said.

Results at Powertech were negatively affected by its cables business. Overall, revenue increased by 6% to R7.5-billion, but Ebitda fell 7% to R500-million.

The cables unit was hurt by a poor performance from Aberdare International, caused by very difficult economic conditions in Iberia. Demand from the infrastructure sector, including from Eskom and South African municipalities, had been strong.

Venter said that numerous cost-cutting and rationalisation steps had been taken, but that the cables business would only recover once the building and construction sector turned.

Altron would continue to focus on organic and acquisitive growth opportunities in the current financial year.

However, Venter said special attention would also be given to “getting the currently underperforming businesses back on track”.

“Improvement in Altech East Africa is imperative,” Venter said, adding that the focus of the turnaround was on restoring network stability, improving customer relationships and integrating the Rwandan, Tanzanian, Ugandan and Kenyan businesses.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 6 hours ago Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
GREEN INDIFFERENCE Companies are focusing more on short-term investments and returns to reduce upfront investment costs, which negates the “green impact”
Updated 6 hours ago The South African market tends to be indifferent towards the green industry trend, with the current market seemingly not valuing buildings that practise green management or that have been designed with green principles, says integrated facilities management solutions...
Updated 6 hours ago Luminaires and glass-fibre reinforced polyester manufacturer Beka Schréder launched its range of light-emitting diode (LED) lighting products in September, which ensures the LEDs and their supporting electronics are, at African ambient temperatures of 35 °C, not...
More
 
 
Latest News
South African Nuclear Energy Corporation (Necsa) group corporate services executive Ambassador Xolisa Mabhongo stressed on Thursday that South Africa currently had only one Integrated Resource Plan (IRP) for electricity, the IRP 2010, and that the IRP Update...
Small Business Deputy Minister Elizabeth Thabethe
South Africans needed to become more entrepreneurial and create their own jobs, instead of expecting government to create jobs or rely on private-sector employment. “We need to become masters of our own destinies,” Small Business Development Deputy Minister Elizabeth...
Plans to increase gross domestic expenditure on research and development (GERD) to 1.5% of gross domestic product by 2019 are yet to be formally adopted, despite the target being incorporated in the draft strategic plan of the Department of Science and Technology...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Updated 6 hours ago In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Updated 6 hours ago Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Updated 6 hours ago Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Updated 6 hours ago Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
Updated 6 hours ago The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks