South Ocean higher earnings offset by impairment
JSE-listed South Ocean Holdings expected to report higher headline earnings for the year ended December 2012; however, basic earnings were expected to fall owing to an impairment.
The electronic and electrical equipment group said on Wednesday that headline earnings a share would rise 20% to 30% higher than the 30.6c reported in the prior year.
A R175-million impairment charge, owing to goodwill arising on the acquisition of the Radiant Group in 2007, resulted in earnings of 100c to 110c lower than the 29.3c recorded in the year to December 2011.
“The impairment was necessitated due to a decrease in earnings of the subsidiary, resulting from current market conditions and the further disruption due to the nationwide transport sector strike in September 2012,” the company explained.
South Ocean would release its 2012 results on February 28.
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