Aug 31, 2012
Ceramic Industries sees big drop in FY earningsBack
Fashionable Product|Higher Value Products|Manufacturing|Manufacturing Capacity|Product|Products|Operations
© Reuse this
Headline earnings per share are expected to be between 21% and 24% lower and basic earnings per share could fall by between 14% and 17% year-on-year.
“Despite the fact that record sales volumes were achieved during the period, profitability was reduced as a result of above-consumer-price-index input cost increases and a deliberate strategy in the first half of the year to contain product price increases to combat price pressure in the local market,” the company said in a statement.
Ceramic noted that its Australian tile operations business Centaurus continued to underperform. “Inability to deliver consistently high-quality fashionable product eroded the division’s customer base and the resulting underuse of manufacturing capacity impacted on production costs,” it stated.
The implementation of remedial measures in the operation during the period failed to effect the urgent turnaround required. The division reported an operating loss of R44.7-million for the period.
Meanwhile, its sanitaryware division improved on the sound performance delivered in the prior year, despite subdued market conditions.
Production and sales volumes increased in the review period, while intensive cost containment and increased sales of higher-value products resulted in an improved margin.
The group's results for the year would be published on September 6.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 3 hours ago Emerging economies did have the ability to overcome the current difficult economic conditions and slow growth forecast, Brazilian Ambassador Carneiro De Mondonça said on Thursday. Speaking at the South African Chamber of Commerce and Industry (Sacci) 2014 Convention,...
Updated 5 minutes ago Mobile operator MTN South Africa has gained some ground in winning back customers during the quarter to September 30 after a delayed reaction to the price war last year saw the JSE-listed group fall behind its rivals. The group’s South African operation added...
Updated 41 minutes ago Photovoltaic (PV) microgrids are increasingly emerging as favourable off-grid power options for the electrification of rural settlements and remote industrial operations in Africa, largely owing to a continued increasing of the diesel price coupled with the...
Updated 2 hours 45 minutes ago Economists saluted Finance Minister Nhlanhla Nene for containing state spending and debt in his first medium-term budget on Wednesday, but opposition parties faulted him for not doing more to stem waste. Wits economist Dr Kenneth Creamer said that with growth lagging...
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
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...