| Fri 11 Feb 2011, 11:13 | | TRE/MOB - Trencor/Mobile - Trading Statement |
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TRE/MOB - Trencor/Mobile - Trading Statement 11 Feb 2011
MOB TRE
MOB TRE
TRE/MOB - Trencor/Mobile - Trading Statement
TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration no 1955/002869/06)
Share Code: TRE
ISIN: ZAE000007506
("Trencor")
MOBILE INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration no 1968/014997/06)
Share Code: MOB
ISIN: ZAE000091435
("Mobile" or "the company")
TRADING STATEMENT
Shareholders in Trencor and Mobile are advised that Trencor expects to report
adjusted headline earnings (which excludes the effect of unrealised foreign
exchange translation gains and losses, and excludes gains realised in 2009 by
Textainer on the early retirement of portion of its own debt) of between 360
and 380 cents per share for the year ended 31 December 2010 (2009: 203,5
cents per share). Headline earnings are expected to be between 325 and 345
cents per share (2009: 134,8 cents per share). These improvements are mainly
the result of the following:
- A much stronger performance by Textainer which reported net profits under
International Financial Reporting Standards ("IFRS") of US$128 million (2009:
US$ 92 million, including gains realised on the early retirement of portion
of its own debt); this included a release of certain taxation provisions,
amounting to US$11,1 million (2009: nil), no longer required under IFRS
following the conclusion of an audit undertaken by the Internal Revenue
Service.
- A reduction of R189 million in Trencor`s net long-term receivable valuation
adjustment following the significantly improved outlook for collections as a
result of the currently very strong container leasing market.
- The spot US$/R exchange rate strengthened from US$1 = R7,35 at 31 December
2009 to US$1 = R6,61 at 31 December 2010. This resulted in net realised and
unrealised exchange losses of approximately R89 million for the year arising
on the translation of the long-term receivables and related valuation
adjustment from US dollars into rand (2009: loss R298 million). The effect
of these losses on earnings per share in 2010 is 34 cents (2009: loss 115
cents).
Trencor`s basic earnings per share are expected to be between 325 and 345
cents per share (2009: 138,1 cents per share).
Based on Trencor`s estimated headline earnings above, Mobile is expected to
report headline earnings of between 26 and 28 cents per share for the year
ended 31 December 2010 (2009: 11,1 cents). Earnings per share are expected
to be between 26 and 28 cents per share (2009: 10,8 cents). Shareholders in
Mobile are reminded, however, that the company distributed its entire
shareholding in Trencor to its shareholders on 7 February 2011 and that
Mobile itself will thus not become entitled to any dividend declared by
Trencor.
This forecast financial information has not been reviewed or reported on by
Trencor`s or Mobile`s independent auditors. The reviewed results in respect
of the year ended 31 December 2010 are expected to be published in the second
half of February 2011.
ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
11 February 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
www.trencor.net
www.mobile-industries.net
Date: 11/02/2011 11:06:02 Produced by the JSE SENS Department.
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