Hulamin reported an operating loss of R949.9million for the year ended December 31, 2018 compared to an operating profit of R498.4m last year. Turnover increased to R11.5 billion, from R10.3 billion last year on increased volume, higher USD rolling margins and a firmer Rand aluminium price.
Hulamin’s rolled products sales volume increased 6 per cent to 228,000 tonnes. This resulted in a third consecutive year of record sales volumes from rolled products division.
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“Rolled Products benefitted from healthy overall demand for its products, while a superb manufacturing performance increased production, and consequently sales, by approximately 6% to 228 000 tons for the year,” the company said.
The company said its extrusions division experienced a challenging year, with lower sales and recorded a net loss for the year. Local fabrication markets were particularly soft throughout the year, affecting Hulamin Extrusions most severely.
Richard Jacob, CEO, commented: "I am proud to report another exceptional operational year in Hulamin Rolled Products. After a strong currency first half, Hulamin produced record profits (HEPS of 78 cents), sales and production in the second half of 2018. This was supported by a weaker currency(average of R14.18 versus R12.30 in the first half)."
Hulamin suffered an impairment charge of R1.45billion across both Hulamin rolled products and extrusions.
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