Restructure hits Afrox half-year earnings
One-time restructuring costs dragged JSE-listed Afrox’s earnings for the first half of 2015.
In a trading update on Wednesday, the company said it expected to report 28% to 39% lower earnings per share (EPS) and 15% to 25% lower headline earnings per share (HEPS) for the six months to June 2015.
EPS were expected to fall from 52.8c apiece for the six months to June 2014 to between 32c and 38c in the period under review, while HEPS would likely reach between 37c and 42c a share in the first half of this year, compared with the 49.5c recorded in the prior corresponding period.
“The decrease in forecast EPS is owing to one-time costs associated with restructuring activities necessitated by the ongoing weak demand for our products and the required reduction in our fixed-cost structure to ensure the sustainability of the company in the medium to longer term,” Afrox noted in a statement.
The company attributed the lower earnings to a R111-million adjustment to the provision for restructuring costs and a R15-million inventory write-down.
Afrox would release its results for the six months under review on August 27.
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