Hulamin expects a surge in earning per share for the full year 2016

<p>Hulamin, the aluminium product manufacturer and supplier from South Africa is expected a surge in earnings at a rate of 127 per cent and 141 per cent for FY2016. The company has attributed the expected surge in earnings to a strong manufacturing performance last year.&nbsp; This target will lift the earnings per share to a range of 116 cents to 123cents in comparison to 51c a share reported at the end of the previous financial year.<br /><br />Hulamin&rsquo;s share price improved on the good news.<br /><br />&ldquo;This positive momentum, achieved with an excellent safety record, provides a solid base for further focus and improvements going into 2017,&rdquo; the company said.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/HULAMIN%20ROLLED%20PRODUCT.jpg" alt="News" width="517" height="226" /><br />Hulamin&rsquo;s rolled products division had benefited from consistent investment in operational excellence and risk management and achieved a record total sales volume of 214 000 and local sales volume of 70,000 tons for the year under review.<br /><br />&ldquo;Sales of can body stock improved strongly in the second half after the slow start to 2016. This increase in demand allowed for an increase in scrap purchases and improved utilisation of Hulamin&rsquo;s recycling capacity in the second half,&rdquo; the company added.<br /><br />{googleAdsense}<br /><br />The company also expects a growth between 208 per cent and 227 per cent in headline earnings for the year.<br /><br />The company said the performance improved in the second half of the year, despite the strong rand, supported by relatively improved LME aluminium prices, to deliver a record operating profit for the financial year.<br /><br />The improved capital and profit performance allowed the company to improve cash flows in the second half and reduce net borrowings by&nbsp; some R350 million.<br /><br />Last year the company reported a 57.47 per cent decline in profits to R163.71 million. With an expected improvement in profit in FY2016, shareholders are expecting better dividend this year. As said by Hulamin chief executive Richard Jacob, the decline in profit last year was due to the slump in commodity and aluminium prices.<br /><br /></p>