Stronger rand cuts Hulamin's interim earnings

25th May 2018

By: Anine Kilian

Contributing Editor Online

     

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JSE-listed Hulamin expects to report a 55% decrease in earnings a share and headline earnings a share to 25c for the six months ended June 30.

The company said in a statement on Friday that its profits had been impacted on by the performance of the rand against the dollar and the euro, as conversion prices of Hulamin’s rolled products were principally foreign-denominated.

“Metal price lag has also had an impact. Hulamin reduced the impact of this lag on profit and loss by 50%, by way of its hedging programme,” the statement said.

The stronger average level of the rand in the four months to April 30, relative to the comparative period of the prior year, has had a negative effect on Hulamin's profit before metal price lag, amounting to about R87-million.

In addition, the fall in the rand aluminium price, driven by the appreciable strengthening of the rand, has resulted in an adverse metal price lag of R100-million over the four months to date.

Conversely, a positive metal price lag of R78-million was recorded in the six months ended June 30, 2017.

The rand aluminium price has risen since April 2018, but remains volatile.

Hulamin’s interim results are expected to be released on or about July 30.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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