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Johannesburg - Shares in African Oxygen [JSE:AFX] fell more than 2% as the gases and welding group said full-year profit was likely to have dropped as much as 30%, hit by impairment costs at its manufacturing facility.
Afrox, majority owned by German's Linde Group, was on Thursday afternoon trading 2.38% weaker at R20.50.
Afrox advised that for the year ending December 2010, its headline earnings per share are expected to be between 10% and 30% lower than those of the previous corresponding period, after taking into account the impairment of assets at two of its manufacturing facilities.
Its basic earnings per share are expected to be between 40% and 60% lower.
The group said it will be impairing assets at two of its manufacturing facilities, and these impairments and associated costs will result in a negative pre-tax impact in 2010 of R112m.
Annualised savings are estimated at R25m, effective in 2011, and R50m, effective in 2012.
Afrox's results are expected to be released on or about February 17 2011.
