Group 5 warns of earnings slide
Johannesburg - Group Five [JSE:GBF] said on Friday its fully diluted headline earnings per share in the six months ended December 2011 were expected to decline by 30%-36% against the previous comparable period.
The construction group said its businesses performed broadly in line with management expectations and in accordance with the guidance provided in November 2011.
Group Five said the results were impacted by losses in the construction materials segment, which the board had resolved to dispose of.
"The board... resolved to dispose of the businesses that constitute the construction materials segment and, as such, the group is currently in discussions with several parties to effect these disposals."
Civil engineering results have been affected in the short term by holding costs and losses in the Middle East from one contract, as previously reported. The company said the disposals might have an effect on the company's share price.
Headline earnings per share are expected to be between 35% and 42% lower than those from the previous period.