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CRM
CRM
CRM - Ceramic Industries Limited - Trading statement for the six months
ended 31 January 2012
CERAMIC INDUSTRIES LIMITED
Registration number 1982/008520/06)
(Incorporated in the Republic of South Africa)
Share code: CRM
ISIN: ZAE000008538
("Ceramic" or "the Group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 JANUARY 2012
Ceramic is currently finalising its results for the six months ended 31
January 2012.
In terms of section 3.4(b) of the Listings Requirements of the JSE Limited,
companies are required to publish a trading statement as soon as a
reasonable degree of certainty exists that the financial results for the
period will differ by at least 20% from those for the previous
corresponding period.
Accordingly, shareholders are advised that the Group`s operating profit
will be between 30% and 35% lower than the prior comparable reporting
period.
Headline earnings per share ("HEPS") and basic earnings per share ("EPS")
are expected to be between 25% and 30% lower than the prior comparable
period.
South African tile operation
Whilst production and sales volumes increased during the review period,
intense margin pressure was experienced. In a deliberate strategy to
retain market share the Group reduced prices to combat the impact of a
sustained influx of cheap imported product. Above-CPI increases in input
costs further eroded the local operation`s profitability.
Australian tile operation
Reduced consumer demand based on inability to meet the market`s fashion
expectations and competition from imports led to an under-utilisation of
capacity with a resultant increase in unit costs. Centaurus operated at a
loss of R24 million for the period.
Intensive remedial measures have been implemented at the operation,
including a comprehensive restructuring of the senior management team. The
Group Chief Executive Officer will provide additional support in this
initial transition phase. These corrective interventions are expected to
realise improved efficiencies in the business and further developments will
be conveyed to shareholders in due course.
Sanitaryware operation
The disappointing performance reported by the tile division was partially
offset by improved results from the sanitaryware division. Sales and
production volumes increased and the operation succeeded in stabilising
unit production costs at 2011 levels. This, together with a higher average
selling price achieved largely from increased sales of higher value
products, resulted in an improved margin.
REVIEW OF RESULTS
The information on which this announcement is based has not been reviewed
or reported on by Ceramic`s auditors.
PUBLICATION OF RESULTS
The Group`s results for the six months ended 31 January 2012 are expected
to be published on SENS on 08 March 2012.
Vereeniging
17 February 2012
Sponsor
One Capital
Date: 17/02/2012 10:30:04 Produced by the JSE SENS Department.
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