| Fri 10 Dec 2010, 15:05 | | ATN / ATNP - Allied Electronics Corporation Limited - Business update |
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ATN ATNP
ATN
ATN / ATNP - Allied Electronics Corporation Limited - Business update
Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code : ATN ISIN: ZAE000029658
Share Code : ATNP ISIN: ZAE000029666
("Altron" or "the company")
Business update
Shareholders are referred to the outlook statement contained in Altron`s
unaudited consolidated interim results announcement published on SENS on 5
October 2010 when it was reported that inter alia:-
* prospects for the second half of the year were expected to be positive
given an expected turnaround in Altech`s performance and continued recovery
from both Bytes and Powertech; and
* visibility going forward remained limited, given, among others, the
strength of the rand and the impact this was having on the translation of
results of foreign operations, reduced export opportunities and competition
from imports.
Pursuant to the financial half year, Altron`s main operations have experienced
the following trading conditions:-
* Powertech`s Aberdare Cables has continued to experience difficult trading
conditions in its power cables business as a result of the ongoing
depressed state of the building and construction sector, including pricing
pressure. It is evident from recent economic data that industries exposed
to this key sector continue to face extremely challenging times with few
signs of recovery being seen, particularly in the domestic residential
market. The remainder of Powertech`s operations have traded according to
our expectations, with Powertech well positioned to capitalise on future
growth opportunities when the markets turn;
* Bytes` trading conditions and markets have not changed significantly from
those reported on in our interim results announcement. Consequently, Bytes
is trading in line with our expectations;
* Altech`s performance since the half year has not improved to the extent
anticipated, predominantly due to continuing adverse global and local
economic conditions, as well as currency volatility factors. Shareholders
are further referred to the voluntary business update published by Altech
on SENS on 10 December 2010 advising its shareholders in this regard.
This business update has not been reviewed or reported on by Altron`s external
auditors.
Johannesburg
10 December 2010
Sponsor
Investec Bank
Date: 10/12/2010 15:05:02 Produced by the JSE SENS Department.
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