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PPC
PPC
PPC - Pretoria Portland Cement Company Limited - Trading update for the period
ended 31 December 2010 - AGM 31 January 2011
Pretoria Portland Cement Company Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000125886
("PPC" or "the Company")
TRADING UPDATE FOR THE PERIOD ENDED 31 DECEMBER 2010 - AGM 31 JANUARY 2011
South African cement sales declined 5% for the quarter ending December 2010.
PPC`s cement sales followed this trend in most provinces with sales to the
construction sector experiencing the greatest decline. On a provincial level,
demand in the Western and Eastern Cape continued to be the most disappointing.
Cement demand in Botswana remained resilient and sales from our Zimbabwean
operations continued to grow. However, a strong local currency constrained
exports from our South African factories to Mozambique and Angola.
Weaker demand from the local steel and alloys industries resulted in lime sales
declining compared to the comparable period last year whilst Aggregate sales
declined in line with considerably lower activity in the construction industry.
The more subdued trading conditions that prevailed during the second half of the
2010 financial year in comparison to the first half of the 2010 financial year
prevailed throughout the quarter ending 31 December 2010. The resultant lower
sales across all divisions have had a negative impact on operating margins.
PPC continues to explore further opportunities in new and existing markets in
sub-Saharan Africa. The nature of this activity tends to have long lead times.
None of the opportunities have yet advanced to a stage where announcements can
be made.
We remain concerned over the outlook for the local building and construction
industries in the short term and expect that demand for cement is likely to
remain subdued.
PPC will continue to focus on managing its operational performance and
efficiencies.
Our longer-term business outlook remains positive, reinforced by the South
African government`s continued commitment to infrastructure development and job
creation and the expected recovery in residential building activity in due
course.
Any forecast financial information included in this Trading Update has not been
reviewed and reported on by the Company`s auditors in accordance with section
8.40(a) of the Listings requirements of the JSE Limited.
31 January 2011
BL Sibiya
Chairman of the Board
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 31/01/2011 12:15:01 Produced by the JSE SENS Department.
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