http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: -0.11
R/$ = 10.74Change: -0.08
Au 1265.52 $/ozChange: -21.66
Pt 1411.00 $/ozChange: -13.00
 
 
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|Equipment|Information Technology Subsidiary|Technology|Infrastructure|Robert Venter|Cables|Information Technology
Construction|Engineering|Africa|Eskom||Africa|Equipment||Infrastructure||Cables|
construction|engineering|africa-company|altron|bytes|eskom|r61|africa|equipment|information-technology-subsidiary|technology|infrastructure|robert-venter|cables|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)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
Updated 4 hours ago A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
Updated 4 hours ago The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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