8th Jul 2010 07:00
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE ISIN No. ZAE000000220
("AECI" or "the Company")
FURTHER TRADING STATEMENT
AECI will be releasing its interim results for the half-year ended 30 June 2010 on SENS on 28 July 2010. In this regard, shareholders are advised that the Company expects that its actual earnings per share ("EPS") and headline earnings per share ("HEPS") for the six months to 30 June 2010 will be between 115% and 135% higher than those achieved for the first half of 2009.
The reasons for this improved performance, from the low base of 2009, were outlined in the Company's trading statement issued on SENS on 12 May 2010 and are reiterated as follows:
AECI's customers in the core business sectors of mining and manufacturing experienced an extremely turbulent trading environment in 2009, especially in the first six months as the global economic crisis took its toll. It was only towards year-end that volumes began a modest recovery, particularly in mining, and commodity prices began to increase. This improvement in trading conditions has continued into 2010, although volumes are not yet at pre-crisis levels.
The current rand/US dollar exchange rate continues to be a concern in the recovery of South Africa's manufacturing sector and its exports. However, current sales volumes and commodity prices, and the fact that the cost bases of all Group businesses are now in line with current levels of throughput, have enabled the Company to achieve an improved performance compared to the first half-year in 2009.
Furthermore, the year-on-year improvement in the Company's cash position has resulted in a lower interest charge.
The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company's auditors.
Woodmead, Sandton8 July 2010Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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