| Thu 8 Jul 2010, 8:00 | | AFE - AECI Limited - Further Trading Statement |
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AFE
AFE
AFE - AECI Limited - Further Trading Statement
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE ISIN No. ZAE000000220
("AECI" or "the Company")
FURTHER TRADING STATEMENT
AECI will be releasing its interim results for the half-year ended 30 June 2010
on SENS on 28 July 2010. In this regard, shareholders are advised that the
Company expects that its actual earnings per share ("EPS") and headline earnings
per share ("HEPS") for the six months to 30 June 2010 will be between 115% and
135% higher than those achieved for the first half of 2009.
The reasons for this improved performance, from the low base of 2009, were
outlined in the Company`s trading statement issued on SENS on 12 May 2010 and
are reiterated as follows:
AECI`s customers in the core business sectors of mining and manufacturing
experienced an extremely turbulent trading environment in 2009, especially in
the first six months as the global economic crisis took its toll. It was only
towards year-end that volumes began a modest recovery, particularly in mining,
and commodity prices began to increase. This improvement in trading conditions
has continued into 2010, although volumes are not yet at pre-crisis levels.
The current rand/US dollar exchange rate continues to be a concern in the
recovery of South Africa`s manufacturing sector and its exports. However,
current sales volumes and commodity prices, and the fact that the cost bases of
all Group businesses are now in line with current levels of throughput, have
enabled the Company to achieve an improved performance compared to the first
half-year in 2009.
Furthermore, the year-on-year improvement in the Company`s cash position has
resulted in a lower interest charge.
The forecast financial information on which this trading statement is based has
not been reviewed and reported on by the Company`s auditors.
Woodmead, Sandton
8 July 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 08/07/2010 08:00:02 Produced by the JSE SENS Department.
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