HLM - Hulamin Limited - Trading statement for the year ending 31 December 2010
HLM
HLM
HLM - Hulamin Limited - Trading statement for the year ending 31 December 2010
HULAMIN LIMITED
(Registration number 1940/013924/06)
(Incorporated in the Republic of South Africa)
Share Code: HLM
ISIN: ZAE000096210
("Hulamin" or "the company")
TRADING STATEMENT FOR THE YEAR ENDING 31 DECEMBER 2010
Hulamin has continued to improve operational performance in the second half of
the year, which has resulted in higher sales volumes, improved US Dollar margins
and continued cost containment. These gains have been counterbalanced by reduced
export earnings due to the strengthening of the Rand.
In a challenging business climate, the Rolled Products` operation in particular
has improved sales and production volumes, US Dollar margins, sales mix,
inventories and metal recoveries in the second half of the year. Unit costs are
at similar levels to the first half of 2010 in spite of increased electricity
prices and full absorption of costs related to the recently completed expansion
project.
During the second half of the year the Rand has on average strengthened by
almost 7% against the US Dollar compared to the first half of 2010. This has
eroded much of the operational improvement benefits mentioned above.
Hulamin Extrusions continues to face difficult trading conditions, particularly
in relation to sales into the construction sector.
The results for the second half of the year were positively impacted by both a
pension fund surplus allocation and a metal price revaluation.
The R75 million project to increase rolling slab casting capacity remains on
schedule to start up early in the second quarter of 2011.
Earnings and headline earnings for the year ended 2010 are expected to be
between R57 million (19 cents per share) and R69 million (23 cents per share),
lower than the earnings of R90 million (37 cents per share) and headline
earnings of R92 million (37 cents per share) for the year ended December 2009.
The above information has not been reviewed and reported on by the company`s
external auditors.
Pietermaritzburg
15 December 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 15/12/2010 08:37:01 Produced by the JSE SENS Department.
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