Aug 31, 2012
Ceramic Industries sees big drop in FY earningsBack
Fashionable Product|Higher Value Products|Manufacturing|Manufacturing Capacity|Product|Products
© 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)
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
The Built Environment unit at the Council for Scientific and Industrial Research (CSIR) has developed a cost-competitive ultrathin concrete pavement surface that, for the upgrading of unpaved roads to paved roads, is more durable than many other pavement alternatives...
The Southern African Large Telescope (SALT), based at Sutherland in the Karoo region in the Northern Cape province, is promising to become an important instrument for research into dark matter. "SALT is shaping up to be very important for answering questions about...
The South African tool, die and mouldmaking (TDM) industry is being revitalised to locally produce the tools, dies, moulds and fixtures required by the manufacturing sector. Local TDM capability is key to enable the manufacturing industry to remain competitive, says...
Misfortune often finds its roots in the smallest of things. Such as a centimetre or two. Or is that in inch? Perhaps a foot? Swedish or Dutch? The French had reason to blush in May as it became apparent that national rail operator SNCF had ordered 2 000 trains that...
The repositioning of the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) and its business processes will ensure improved performance in reaching strategic targets and in providing customer service.