29 JULY 2011fm.co.za
Hulamin - June interim results
Edited by : AL CIRCLE
1 min read
Hulamin’s interim results to June could have been brilliant. Setting the scene were two key props : sharply higher production and lower costs. Spoiling the show , as it has done for over two years, was a strengthening rand, which prevented the aluminium product manufacturer from performing anywhere near its potential.
At first glance Hulamin’s interim results are more than respectable, with its headline EPS doubling compared with the first half of 2009/2010 to 22c. But a big portion of the rise was due to the receipt of a R26m (after tax) insurance settlement which, if excluded, leaves EPS at 14c, only a 27% increase. Compared with the second half of 2009/2010, EPS were down 6,7%.
The strong rand largely offset the benefits of a 22% rise in production and sales of key rolled aluminium products to 208000t and a R240m reduction in annualised costs, says Hulamin CEO Richard Jacobs. The rand, he adds, strengthened by 63c/US$ (8,3%) compared with the first half of 2009/2010 and in the process sliced around R70m (22c/share) off headline earnings.
At first glance Hulamin’s interim results are more than respectable, with its headline EPS doubling compared with the first half of 2009/2010 to 22c. But a big portion of the rise was due to the receipt of a R26m (after tax) insurance settlement which, if excluded, leaves EPS at 14c, only a 27% increase. Compared with the second half of 2009/2010, EPS were down 6,7%.
The strong rand largely offset the benefits of a 22% rise in production and sales of key rolled aluminium products to 208000t and a R240m reduction in annualised costs, says Hulamin CEO Richard Jacobs. The rand, he adds, strengthened by 63c/US$ (8,3%) compared with the first half of 2009/2010 and in the process sliced around R70m (22c/share) off headline earnings.
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