FWD - Freeworld Coatings Limited - Current Performance And Outlook
FWD
FWD
FWD - Freeworld Coatings Limited - Current Performance And Outlook
FREEWORLD COATINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2007/021624/06)
ISIN: ZAE000109450
Share Code: FWD
("Freeworld" or "the company")
CURRENT PERFORMANCE AND OUTLOOK
Johannesburg, 30 January 2009 - Trading in the first quarter of the financial
year 2009 was pleasing with performance ahead of the same period last year,
which in itself was a good trading period. This is despite challenging trading
conditions which we expect to remain tough for the foreseeable future. We remain
optimistic that we will continue to perform competitively.
We believe that demand for Decorative coatings will remain fairly resilient.
This is as a result of current and future infrastructural projects as well as
the fact that our exposure to the direct consumer segment only represents just
over 30% of turnover. In addition, demand for automotive refinish products
should remain, as the number of cars on the roads continues to increase despite
the drop in new vehicle sales.
Operating margins have been maintained despite increasing pressure in this
regard.
A substantial amount of work has been done on the alignment of the strong
Plascon brand and its sub-brands with the Freeworld Coatings corporate brand.
These will be rolled out in the months ahead.
Work on the new raw material store at Mogale City is progressing well, is on
plan, and is expected to be completed by the end of April 2009. Work is also
progressing well on the new finished goods warehouse in Mobeni, which should be
operational in March 2009. The completion of these projects will eliminate
logistical bottlenecks, and further improve work flow and operational
efficiencies.
The worsening global financial crises and its potential impact on currency and
interest rates make it difficult to give a firm outlook for the year. Given the
currency movements since year end, the company is not expected to again benefit
from a similar significant level of favourable fair value adjustments as was the
case in the 1st half of last year.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited
Date: 30/01/2009 12:00:04 Produced by the JSE SENS Department.
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