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Datatec shares dive after profit warning

Jan 16 2013 12:04 I-Net Bridge

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Johannesburg - Shares in Datatec [JSE:DTC] dropped nearly 6% to their lowest point in about five months on Wednesday after the ICT group said its full-year performance would be lower than originally forecast.

Net profits in the year to February 2013 are expected to be in the range of $80m to $90m‚ from $89m a year ago.

CEO Jens Montanana said: “Our global reach and diversity are continuing to provide relative resilience against the poor economic backdrop of many of the world's economies. Although disappointed by the recent developments in Westcon‚ we are not immune to the continuing weakness in many sectors‚ especially in the more mature markets. We are already adjusting our business model accordingly.”

At 9:58am‚ the share price was down 5.76% to R46.65‚ valuing the company at R8.978bn.  

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