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Johannesburg - Howden Africa [JSE:HWN], which designs, manufactures and markets specialised fans, air and gas handling solutions to a wide range of industries, witnessed a 30.6% decline in headline earnings per share for the year ended December from 152.5 cents to 105.85 cents.
The group pointed out however that it had operated profitably and generated strong cash flows despite the challenging economic conditions.
The group revenue of R868.8m compared to R976.3m in 2009, a reduction of 11%.
"A low opening order book and continuing delay in prospects associated with corporate capital expenditure budgets impacted negatively on the Environmental Control division. Work connected to Eskom's new build programme, and an improvement in exports of new equipment into Africa, assisted in generating higher revenue volumes in the Fans and Heat Exchangers division," the group stated.
Profit before tax of R109.1m (2009: R134.7m) was reported. Lower revenue volumes at reduced margin in the Environmental Control division impacted negatively during the year.
Net financial income of R6.4m compared to R5.2m reported last year, a favourable outcome given the payment of a special dividend in July 2010.
Looking ahead, Howden Africa said that order book levels in the Fans and Heat Exchangers division had remained largely in line with the position reported at the end of December 2009. The slowdown in private sector fixed investment, however, had affected the Environmental Control division which presently had a relatively low order book despite a number of promising prospects.
Recovering market conditions and firm commodity prices would need to be sustained to give support to the group remaining cautiously optimistic looking ahead, the group added.
A final dividend of 15 cents per share was declared.
The group pointed out however that it had operated profitably and generated strong cash flows despite the challenging economic conditions.
The group revenue of R868.8m compared to R976.3m in 2009, a reduction of 11%.
"A low opening order book and continuing delay in prospects associated with corporate capital expenditure budgets impacted negatively on the Environmental Control division. Work connected to Eskom's new build programme, and an improvement in exports of new equipment into Africa, assisted in generating higher revenue volumes in the Fans and Heat Exchangers division," the group stated.
Profit before tax of R109.1m (2009: R134.7m) was reported. Lower revenue volumes at reduced margin in the Environmental Control division impacted negatively during the year.
Net financial income of R6.4m compared to R5.2m reported last year, a favourable outcome given the payment of a special dividend in July 2010.
Looking ahead, Howden Africa said that order book levels in the Fans and Heat Exchangers division had remained largely in line with the position reported at the end of December 2009. The slowdown in private sector fixed investment, however, had affected the Environmental Control division which presently had a relatively low order book despite a number of promising prospects.
Recovering market conditions and firm commodity prices would need to be sustained to give support to the group remaining cautiously optimistic looking ahead, the group added.
A final dividend of 15 cents per share was declared.
