Austro Group earnings decline
Johannesburg - Industrial supplier to construction-related sectors, Austro Group [JSE:ASO] on Monday announced diluted headline earnings per share of 5.2 cents for the year ended August 2010, from 10 cents previously.
Earnings per share declined to 5.4 cents, from 10.1 cents earlier.
Revenue dropped to R401.9m from R580.5m with profit from operations at R36.64m from R88.04m in 2009.
Austro declared a dividend per share of 4 cents from 2 cents previously.
"The group delivered moderate results considering the effect of the depressed economy on the Power Division and the lower than expected demand for woodworking equipment in anticipation of the 2010 World Cup," it said.
"The highlight was the elimination of all significant debt on the balance sheet and cash generated by operating activities of R120.9m," it said.
Revenue for its power division decreased by 36.5% to R268.4m, while it contributed 66.8% overall revenue, from 72.8% in 2009.
Austro highlighted the benefits of a restructuring process at it wood division "and resultant cost reductions made in the previous year are now being felt with the operating profit being in line with forecasts," it said.
This division contributed 33.2% to group revenue, which declined by 15.5% to R133.5m.
It said that it expected market growth would remain "relatively flat" in the forthcoming year.