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AECI earnings hit by mining woes

Feb 26 2013 07:57 Reuters

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AECI sees fall in full-year earnings

 

Johannesburg - Chemicals and explosives maker AECI [JSE:AFE] posted a 24% fall in annual earnings on Tuesday, snapping three straight years of growth as slack demand from strike-hit mining firms weighed.

AECI said headline earnings per share totalled 547 cents in the year to end-December compared with 720c a year earlier.

Revenue rose 11% to R14.92bn, largely as a result of the weaker rand/dollar exchange rate and increased selling prices. Overall volumes were flat.

A weaker rand is a positive for South African exporters as it lifts profits when overseas earnings are brought home.

Last year's protracted strikes in the mining, transport and agricultural sectors hit the group's profit from operations by more than R100m.

AECI is expected to struggle this year as its key customers in the mining industry in South Africa shut unprofitable mines and cut capital expenditure to head off the effects of lower metal prices and higher costs.

The company declared a final cash dividend of 185c per ordinary share, up from 179c the previous year.  

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aeci  |  mining unrest
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