DEL
DEL
Delta Electrical Industries Limited - Trading update
Delta Electrical Industries Limited
Incorporated in the Republic of South Africa
(Registration number 1919/006020/06)
Share code: DEL & ISIN: ZAE000002036
("Delta")
Trading update
Delta Shareholders are referred to the Prospects Statement contained in the
Audited Results Announcement published on 23 February 2006 in which Delta
directors highlighted that the results of the continuing business will amongst
others be dependent on exchange rates and the impact of higher production costs.
In addition the results of the business in 2006 would be negatively affected by
the Secondary Taxation Charge ("STC") on the final special dividend and
positively affected by interest earned on the sale proceeds up to the payment of
the final special dividend.
Shareholders are advised that a loss and headline loss per share of between 178
cents and 186 cents from continuing operations is forecast for the six months to
27 June 2006, which compares with the earnings and headline earnings per share
of 11,8 cents from continuing operations for the six months ended June 2005. The
forecast loss and headline loss per share for the six months ended 27 June 2006,
is negatively affected by the STC charge of R86 million (175 cents per share)
paid on the final special dividend in March 2006. Excluding the STC charge on
the final special dividend the forecast loss and headline loss per share would
be between 3 cents and 11 cents.
A loss and headline loss before taxation of between R3 million and R7 million is
forecast for the six months to 27 June 2006. This loss and headline loss
compares with the earnings and headline earnings before taxation from continuing
operations of R10 million for the six months ended June 2005.
The deterioration in trading results is attributable to lower sales volumes into
the USA and Asia. Higher manganese ore costs, which did not affect the business
in the first six months of 2005 have also affected profitability. In addition
earnings and headline earnings for the six months ended June 2005 were
positively affected by a R13,6 million (before taxation) environmental provision
write back which will not re-occur in 2006 and a net foreign exchange gain of
R5,8 million, which will be lower for the six months to June 2006.
The forecast loss and headline loss before taxation for the six months ended 27
June 2006 has been positively affected by interest earned on the sale proceeds
up to the payment of the final special dividend of R688 million on 20 March
2006.
Johannesburg
13 July 2006
Sponsor
Nedbank Capital
Date: 13/07/2006 10:32:07 AM Produced by the JSE SENS Department
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