http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.99Change: -0.07
R/$ = 13.26Change: 0.05
Au 1144.01 $/ozChange: 10.26
Pt 1015.00 $/ozChange: 3.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 22, 2012

Packaging manufacturer Transpaco delivers strong performance

Back
Flow|Industrial|Packaging|Resources|Equipment|Flow|Packaging|Infrastructure|Operations
Flow|Industrial|Packaging|Resources|Equipment|Flow|Packaging|Infrastructure|Operations
flow-company|industrial|packaging-company|resources|equipment|flow-industry-term|packaging|infrastructure|operations
© Reuse this



JSE-listed packaging company Transpaco on Wednesday said it had increased its profit from continuing operations by 10% to R45.3-million during the six months to December 31, despite a reduction of about R3.6-million in profit after tax, owing to unexpected industry-wide industrial action.

The company’s turnover was boosted by the contribution of Disaki Cores and Tubes, which was acquired in November 2010. Turnover grew by 21.2%, to R552.8-million.

However, headline earnings a share were down by 3.1%, as a result of 3.3-million additional ordinary shares being issued during the period. The increase was owing to Transpaco’s broad-based black economic-empowerment shareholder converting its preference shares into ordinary shares towards the end of the previous financial year.

Transpaco CEO Phillip Abelheim pointed out that there were no further preference shares in issue.

Disaki’s contribution, and stringent control of group operating costs saw operating profit from continuing operations grow by 4.2%, to R63.3-million. Coupled with a strong operational cash flow the group was able to maintain gearing at 7%.

The solid performance reflected management’s focus on innovative growth initiatives and optimising efficiencies. “Keeping a sharp focus on business fundamentals remained key to Transpaco’s ongoing growth. We concentrate on business basics irrespective of trading conditions,” he said in a statement.

He added that Transpaco’s strategy of investing in plant, equipment and information technology infrastructure had increased capacity and ensured the group’s competitiveness locally and against imports. Transpaco recently installed a third line at a cost of R24-million to increase capacity in the growing pallet stabilisation market.

Meanwhile, Transpaco closed underperforming operations during the period. “We made the decision to discontinue our weaker polyvinyl chloride and polyethylene terephthalate operations, which had enabled us to redeploy resources into exciting new opportunities,” Abelheim said.

Transpaco is currently in the process of establishing a high-volume polypropylene recycling facility, reaffirming the group’s commitment to green initiatives. “The recycling of pre- and post-consumer polypropylene will see Transpaco expanding its foothold in the recycled plastics market. Currently the group operates a substantial post-consumer polyethylene recycling division," he added.

Going forward, Transpaco was optimistic, but cognisant of the challenging economic conditions.

Transpaco increased its interim dividend by 7% year-on-year to 31c a share.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Chemicals News
UNIQUE APPLICATION Verni installs its Supaflor PU HD 9mm polyurethane screed in industrial freezers because it can withstand extreme temperatures
Hygienic flooring is important in the food and beverage sector because it prevents the growth of bacteria in food-processing plants, says speciality construction products manufacturer Verni technical sales manager Peter Breiting. He notes that hygienic flooring is...
MAKING PAINT SAFE The quantities of lead used to manufacture some pigmented paints is insignificant
Local paints industry representative organisation the South African Paint Manufacturers Association (Sapma) will meet with the Department of Health (DoH) this month to propose that the South African paints industry is aligned with US and UK legislation regarding...
South African energy and chemicals group Sasol confirmed on Friday that its earnings for the financial year to June 30, 2015, would be down on the previous year, despite a strong operational performance – the weaker result was largely attributed to the sharp fall in...
Article contains comments
More
 
 
Latest News
Electric vehicle maker and energy storage solutions provider Tesla Motors has selected the northern Mexico-located Sonora lithium project to supply lithium hydroxide for its Gigafactory, in Nevada. Partners TSX-V-listed Bacanora Minerals and LSE-listed Rare Earth...
Koeberg unit 2 will be shut down on Monday August 31 for scheduled refuelling and maintenance and is expected to return back to service by mid-December 2015, Eskom said late Monday afternoon. The scheduled shutdown of Koeberg unit 2 is part of Eskom’s overall...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96