Imperial earnings dip due to weak rand

Johannesburg - South African auto dealer and logistics group Imperial Holdings expects half-year earnings to drop around 11% as a weaker rand hit income from its car import business, the company said on Monday.

The company sees headline earnings at between 765 and 740 cents per share for the six months to end-December 2014, from 831c in the same period a year earlier.

Investors offloaded the stock, sending the shares 4.5% lower at 10:43 GMT.

"The decline in operating income is attributable to rand weakness, impacting the competitiveness and profitability of the vehicle import, distribution and dealership division," Imperial said in a filing to the stock exchange.

Imperial, which imports nearly 20 auto and industrial vehicle brands, including Kia and Mitsubishi cars and Crown forklifts, expects operating income of between R2.9 to 2.8bn ($253 - $244m), from R3.2bn a year ago.

The rand lost nearly 10% against the dollar in 2014, extending a 20% drop in the previous year and hurting income on import-reliant companies such as Imperial.