http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
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  
 
 
Nov 25, 2008

Reunert focuses on cash preservation as slowdown bites

Back
 
 
 
 
 
 
Aluminium|Cable|Copper|Eskom|Industrial|Mining|Systems|Energy|Equipment|Manufacturing|Products|Solutions|Steel|Systems|Cable|Cables
Aluminium|Cable|Copper|Eskom|Industrial|Mining|Systems|Energy|Equipment|Manufacturing|Products|Solutions|Steel|Systems|Cable|Cables
aluminium|cable|copper|eskom|industrial|mining|systems-company|energy|equipment|manufacturing|products|solutions|steel|systems|cable-product|cables
© Reuse this



JSE-listed technology group Reunert would focus on cash preservation as economic conditions deteriorated, but CEO Gerrit 'Boel' Pretorius was convinced that some of its business units were still positioned for growth.

Speaking at the company's year-end results presentation in Johannesburg on Tuesday, Pretorius acknowledged that demand would decline in the near term and that exchange-rate uncertainty would linger.

The group was responding by scaling back capital expenditure and raising its dividend cover from 1,8 to two times - this cover could be revised upwards again should conditions deteriorate further.

Pretorius said that it was "good management" to preserve cash, as trading conditions become more difficult.

However, he said the company would still consider acquisition opportunities given its strong balance-sheet position. But there was no immediate prospect of corporate activity.

The group's CBI-Electrical division was expected to benefit from strong demand for high-tension cable and fibre cable, although demand from the general market would be weaker owing to the economic climate.

The energy cables business had in the year ended September 30, 2008, secured a significant contract to supply aluminium conductor steel reinforced cable for Eskom's five-year contract. It also had a strong order book for the supply of high-voltage cable.

Further, Pretorius noted that while the high copper price had previously been of great concern for the energy cables business, the price had since softened from about $8 800/t to about $3 000/t. He expected the price to decline even further to about $2 200/t.

Demand for its telecommunications cables from Telkom had declined, but fibre-optic cable demand was increasing.

Pretorius expected this demand to increase even further with a number of telecommunications players, such as Altech Autopage Cellular, were now permitted to self-provide.

On the low-voltage products side, Reunert had grown its exports of circuit-breaker equipment and had countered Chinese imports in the local market. Its exports to Australia had also increased.

The company also planned to start manufacturing a number of medium-voltage products and was already supplying some products to this market, where substantial contracts were on offer.

Meanwhile, Pretorius asserted that the group's Reutech division would benefit from receiving a dollar-based income in the short term, while local demand would ensure demand for its products in the longer term.

The radar systems business had already seen an adoption of its slope stability radar equipment by a number of the large mining houses, where there was a big requirement. It had already started exporting systems to Australia and South America, and was optimistic of entry into the North American market.

Further, the company had facilities in place to ensure it could produce about 500 000 set-top boxes a year, as part of government's digital migration programme.

Pretorius said this market was valued about R7-billion over a four to five year period.

Meanwhile, the RDL Solutions business had received its first terrestrial trunked radio (Tetra) order from a large industrial South African group, in a contract worth R52-million.

It would provide 4 000 tetra-safe handsets and install 11 tetra sites, including towers and civil works.

Further, the company had submitted two large tenders, which Pretorius hoped would come through, as larger Tetra contracts could generate about R1-billion each.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
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