http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.16Change: -0.03
R/$ = 10.52Change: -0.02
Au 1297.41 $/ozChange: -6.79
Pt 1471.50 $/ozChange: -10.00
 
 
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 Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 22, 2012

Packaging manufacturer Transpaco delivers strong performance

Back
Disaki Cores And Tubes|Flow|Industrial|Packaging|Resources|Transpaco|Equipment|Flow|Information Technology Infrastructure|Packaging|Infrastructure|Phillip Abelheim|Information Technology
Flow|Industrial|Packaging|Resources||Equipment|Flow|Packaging|Infrastructure||
disaki-cores-and-tubes|flow-company|industrial|packaging-company|resources|transpaco|equipment|flow-industry-term|information-technology-infrastructure|packaging|infrastructure|phillip-abelheim|information-technology
© 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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
Barbara Creecy
Updated 21 minutes ago In support of Gauteng Premier David Makhura’s vision of a “radical transformation” of the provincial public sector, Gauteng MEC for Finance Barbara Creecy announced on Thursday that Provincial Treasury and the provincial Department of Transport (DoT) have...
Updated 45 minutes ago South Africa's UASA union said on Thursday it had accepted a wage increase offer of between 7 and 10 percent, raising hopes of an end to a three-week strike by more than 200, 00 steel and engineering workers. "The members have already accepted the financial...
Updated 2 hours 10 minutes ago SABMiller, the world's second-biggest brewer, reported higher first-quarter sales volumes on Thursday, helped by a return to growth in lager sales in Africa. The London-listed company behind beers such as Miller, Grolsch and Peroni said revenue rose 6 % in the three...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
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