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Hulamin posts rise in turnover despite falling aluminium price
Edited by : AL CIRCLE
2 min read
ALUMINIUM processor Hulamin on Monday reported a 32% decline in headline earnings per share (HEPS) to 21c in the half-year ended June 30 2013 compared with restated 2012 results.
The restatement is required by the new accounting standard IAS 19R, which became effective in the current period and which Hulamin has applied for the first time.
Although the revised standard had little impact in the current period, it has had a substantial effect on the restatement of the corresponding prior period. HEPS would have been up 17% compared with the previously reported 2012 results.
This material difference arose from the conversion of the Hulamin pension fund from defined benefit to defined contribution in 2012.
Turnover increased by 13.1% to R3.6bn on higher sales volumes and a weaker rand, moderated by a lower aluminium price.
Normalised earnings increased to R91m from a R11m loss.
Rolled products sales rose 3% to 195,000 tons annualised.
Preventative maintenance and plant upgrade work was completed during a planned nine-day outage in May, resulting in the loss of about 5,000 tons of production.
This concluded the upgrade to the Camps Drift Hot Mill, which formed part of the original insurance claim on downtime that occurred in 2012. Insurance proceeds of R23m (pretax), which offset the loss of production incurred this year, are included in these results.
The London Metals Exchange price of aluminium fell by about $200 a ton during the period, which resulted in a negative metal price lag adjustment of R29m.
In March, consultation began with employees on possible job cuts. This process, which is now largely complete, will see a head count reduction of about 140 people. One-off severance costs of R35m (pretax) have been provided for in these results.
Operating profit before exceptional items and metal price lag increased to R187m in 2013, which is the highest level since 2006.
The company said that after completing the retrenchments and with a more balanced order book in place, it expected improved sales volumes and better yields in the second half.
Hulamin shares were up 5% at R4.60 in early trade on Monday.
The restatement is required by the new accounting standard IAS 19R, which became effective in the current period and which Hulamin has applied for the first time.
Although the revised standard had little impact in the current period, it has had a substantial effect on the restatement of the corresponding prior period. HEPS would have been up 17% compared with the previously reported 2012 results.
This material difference arose from the conversion of the Hulamin pension fund from defined benefit to defined contribution in 2012.
Turnover increased by 13.1% to R3.6bn on higher sales volumes and a weaker rand, moderated by a lower aluminium price.
Normalised earnings increased to R91m from a R11m loss.
Rolled products sales rose 3% to 195,000 tons annualised.
Preventative maintenance and plant upgrade work was completed during a planned nine-day outage in May, resulting in the loss of about 5,000 tons of production.
This concluded the upgrade to the Camps Drift Hot Mill, which formed part of the original insurance claim on downtime that occurred in 2012. Insurance proceeds of R23m (pretax), which offset the loss of production incurred this year, are included in these results.
The London Metals Exchange price of aluminium fell by about $200 a ton during the period, which resulted in a negative metal price lag adjustment of R29m.
In March, consultation began with employees on possible job cuts. This process, which is now largely complete, will see a head count reduction of about 140 people. One-off severance costs of R35m (pretax) have been provided for in these results.
Operating profit before exceptional items and metal price lag increased to R187m in 2013, which is the highest level since 2006.
The company said that after completing the retrenchments and with a more balanced order book in place, it expected improved sales volumes and better yields in the second half.
Hulamin shares were up 5% at R4.60 in early trade on Monday.
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