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Johannesburg - Construction group Wilson Bayly Holmes-Ovcon [JSE:WBO] said on Tuesday that it expects a 15% to 20% decline in headline earnings and a 10% to 15% drop in earnings per share for the six months ended December 2010.
"The reduction in earnings is primarily due to the poor trading results from Capital Africa Steel and having taken cognisance of the unfavourable outlook for the steel and ready mix industries, a further impairment of the group's investment was considered necessary by management," it said.
It said the impairment affected loan funding and was included in headline earnings.
The group's operating income before non-trading items is expected to remain constant compared to the six months ended December 2009.
WBHO announced an 18.5% increase in headline earnings to R460m for the six months ended December 2009, while earnings per share improved by 17.6% over the comparative period.
Revenue for the period increased by 12.1% to R7.6bn, and operating profit before non-trading items rose by 20.5% to R604m.
WBHO will publish its results on February 22.
"The reduction in earnings is primarily due to the poor trading results from Capital Africa Steel and having taken cognisance of the unfavourable outlook for the steel and ready mix industries, a further impairment of the group's investment was considered necessary by management," it said.
It said the impairment affected loan funding and was included in headline earnings.
The group's operating income before non-trading items is expected to remain constant compared to the six months ended December 2009.
WBHO announced an 18.5% increase in headline earnings to R460m for the six months ended December 2009, while earnings per share improved by 17.6% over the comparative period.
Revenue for the period increased by 12.1% to R7.6bn, and operating profit before non-trading items rose by 20.5% to R604m.
WBHO will publish its results on February 22.
