Local chemicals company Omnia Holdings’ share price on the JSE fell by more than 16% on Monday after it announced that it expects to swing to a loss a share for the six months to September 30.
It expects to report a loss a share of between 85c and 170c, compared with the earnings a share of 423c reported for the six months to September 30, 2017.
Headline earnings share are forecast to decrease from the 420c reported for the prior comparable period to a loss of between 84c and 168c for the period under review.
The company, which will release its financial results for the interim period on November 27, further warned that it would likely post a basic loss of between R57-million and R114-million, compared with basic earnings of R285-million in the prior comparable period, while headline earnings are expected to decrease from R283-million to a loss of between R57-million and R113-million.
Omnia attributed the decrease in earnings for the interim period to lower profitability in its agriculture division; margin pressure on emulsions, detonators and accessories in its mining division; a constrained manufacturing and mining sector in South Africa; and higher unrealised foreign exchange gains in the comparable period, besides others.
The company’s share price fell to R97 early on Monday, compared with Friday’s close of R115.99. Its share price later recovered somewhat to R108.85, but was still 6.16% lower than Friday’s closing price.