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Johannesburg - Distribution and Warehousing Network [JSE:DAW] (Dawn) reported diluted headline earnings per share of 15.1c against 29.8c previously and headline earnings per share of 15.2c compared with 31.9 cents before for the six months ended 31 December 2010.
The company said on Thursday revenue had decreased by 1.4% to R1.8bn (H1 2010: R1.9 billion) against a 6% decrease in volumes and average price increases of 4%.
"A substantial portion of the revenue of the manufacturing entities is inter-group and is eliminated on consolidation."
"In the period, a total of R470m (H1 2010: R423m) was eliminated as inter-group sales," the company added.
Manufacturing and operating costs remained a main focus area from a financial management perspective and resulted in the containment of costs, as committed.
A further cost saving of R50m over and above the R57m achieved in the second half of 2010 was achieved.
"This forms the new lower cost base going forward.
"The cost savings included right-sizing and cost-cutting in areas such as operating expenses, capital expenditure and labour.
"Unfortunately, the drop-off in volumes in the majority of businesses negated these savings."
At operating profit level the group's performance was "disappointing," with a 48% decline to R63m (H1 2010: R121m).
The company said on Thursday revenue had decreased by 1.4% to R1.8bn (H1 2010: R1.9 billion) against a 6% decrease in volumes and average price increases of 4%.
"A substantial portion of the revenue of the manufacturing entities is inter-group and is eliminated on consolidation."
"In the period, a total of R470m (H1 2010: R423m) was eliminated as inter-group sales," the company added.
Manufacturing and operating costs remained a main focus area from a financial management perspective and resulted in the containment of costs, as committed.
A further cost saving of R50m over and above the R57m achieved in the second half of 2010 was achieved.
"This forms the new lower cost base going forward.
"The cost savings included right-sizing and cost-cutting in areas such as operating expenses, capital expenditure and labour.
"Unfortunately, the drop-off in volumes in the majority of businesses negated these savings."
At operating profit level the group's performance was "disappointing," with a 48% decline to R63m (H1 2010: R121m).
