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AECI posts 67% profit surge

Feb 22 2011 07:53 Reuters

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Johannesburg -  AECI [JSE:AFE] reported a 67% rise in 2010 profit on Tuesday as strong demand offset unfavourable swings in currencies.

AECI, Africa's largest maker of explosives for mines, said headline earnings per share totalled 577c in the year to end-December compared with 346 cents a year earlier.

Headline EPS strips out certain one-off and non-trading items.

AECI has benefited as surging commodity prices lifted capital expenditure by miners, but the stronger rand hurt South African manufacturers, blunting demand for the company's chemicals.

The company, which raised its final dividend by 117% to 135c per share, said revenue rose 8% to R11.6bn.

AECI said it expected demand to improve further as the mining sector, to which it supplies explosives, continues to recover.

"The recovery in the mining sector and steady increases in global chemical prices are good indicators of improving demand," the company said in a statement.

Shares in AECI, which have gained around 30% in the past 12 months, are little changed so far this year.
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