Hulamin full-year earnings to rise substantially
Manufacturer Hulamin expected its earnings for the year ended December 31, 2012, to be between R130-million and R135-million, which would represent an increase of between 63% and 69% on the earnings of R80-million in 2011.
Headline earnings were expected to be between R180-million and R185-million, or between 125% and 131% higher than the R80-million achieved in 2011, the company said in a trading statement on Wednesday.
The company stated that it had, in the second half of the financial year, successfully returned to the improved operational performance achieved prior to the disruption caused by the failure of a motor on the Camps Drift hot line.
The resulting insurance claim had partially offset the loss arising from this incident.
The Camps Drift hot-mill output exceeded forecasts in recent years, resulting in the Edendale hot mill being mothballed and consequently impaired.
Meanwhile, the manufacturer warned that poor market conditions had led to an impairment of the extrusion assets, which reduced earnings by R51-million.
Hulamin’s full results were due for release on February 25.
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