PRETORIA PORTLAND CEMENT COMPANY LIMITED - AGM TRADING UPDATE
PRETORIA PORTLAND CEMENT COMPANY LIMITED
Incorporated in the Republic of South Africa
(Registration number 1892/000667/06)
(`PPC` or `the company`)
JSE code:PPC
ISIN code:ZAE000005559
TRADING UPDATE - Chairman`s statement at the AGM
Trading conditions in the first quarter of this financial year have continued to
be very favourable and domestic cement sales volumes again grew ahead of
expectation. Whilst the growth in demand during the October to December quarter
was pleasing, the building sector is showing signs of strain, with shortages in
both construction materials and tradesmen being reported. This is likely to
temper the rate of growth in building activity and thus cement demand this year.
As expected, Porthold in Zimbabwe continued to experience difficult conditions,
but both sales volumes and revenue were ahead of expectations and cash
generation remained positive.
Lime volumes were marginally higher than the same quarter last year.
Prospects
We still expect that local cement demand is likely to grow at between 6% and 8%
in the year ahead. The growth in cement volumes should enable the company to
report increased operating profits for the full year. Net profit attributable
to shareholders will however be impacted by a significantly higher level of
secondary tax on companies (STC), arising from the increased level of special
dividend, and is not expected to be materially different from 2004.
Strong cash flows are expected to continue, arising from increased profitability
and the low capital expenditure forecast for 2005.
Sandton
14 January 2005
Sponsor
Cazenove
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