Omnia share price tumbles
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Trade and Industry Correspondent
FERTILISER, explosives and chemicals company Omnia's share price fell close to 7% yesterday in response to a warning that group earnings for the six months to September would be more than 30% lower that the levels achieved in the corresponding period last year.
The announcement was not unexpected, but echoed Omnia CE Rod Humphris' earlier warning that the previous year had been an exceptional one for the company, and that such a performance was unlikely to be repeated this year.
Investment management firm Imara SP Reids confirmed that the statement did not significantly change information already in the market about prospects for Omnia in the year ahead. Nonetheless, the share price dropped 150c to R21.
Omnia also said earnings for the full year to March next year would revert back to the group's historic earnings growth. Omnia's growth last year was driven mainly by "unusually high export volumes and margins" helped by the weak rand.
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