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Johannesburg - In line with its expansion strategy in the rest of Africa, PPC's construction continues in Rwanda, Zimbabwe, Ethiopia and the Democratic Republic of the Congo, the company said in a trading update.
"We are finalising the transaction that will see the company increase its stake in Habesha Cement Company in Ethiopia, to 51%. The civil and mechanical construction of the 600 000 tpa plant in Rwanda is complete with only the electrical installation work to be finalised. Consequently, production is expected to commence early in the second half of 2015," said PPC [JSE:PPC].
"Additional opportunities continue to be pursued and further announcements may be made in the near term. The board is considering the merits of the merger proposal received from AfriSam late last year and further announcements will be made."
PPC said positive group cement sales volumes were achieved for the first quarter, supported by the consolidation of Safika Cement and growth achieved in Zimbabwe and Botswana. On a like-for-like basis, excluding Safika Cement, group cement volumes would have recorded single digit declines against the comparable period last year.
"The operating environment in South Africa remains tough on the back of weak economic growth, which has been exacerbated by power shortages, and increased competitor activity. Domestic sales volume growth in Zimbabwe and Botswana has shown an upward trend," according to PPC.
"However, in all territories muted selling price growth has been achieved. The lime division has shown an improved performance with new business secured and higher off-take from the steel and alloys industries, while the aggregates division has been impacted by reduced demand from project related customers."
Pronto Readymix, consolidated from July 2014, has positively contributed to the group results.
"While the South African trading environment will remain tough and highly competitive, we believe that our various response strategies have positioned PPC well to limit the impact on the group. The release of major infrastructural projects in South Africa, Botswana and Zimbabwe would provide a key driver for demand of cement products," said PPC.
Earnings per share for the first half of 2015 are anticipated to reflect a year-on-year decline mainly due to last year's once off tax credit combined with increased finance costs in this year. Any forecast financial information on which this trading update is based has not been reviewed by the company's auditors.
"We are finalising the transaction that will see the company increase its stake in Habesha Cement Company in Ethiopia, to 51%. The civil and mechanical construction of the 600 000 tpa plant in Rwanda is complete with only the electrical installation work to be finalised. Consequently, production is expected to commence early in the second half of 2015," said PPC [JSE:PPC].
"Additional opportunities continue to be pursued and further announcements may be made in the near term. The board is considering the merits of the merger proposal received from AfriSam late last year and further announcements will be made."
PPC said positive group cement sales volumes were achieved for the first quarter, supported by the consolidation of Safika Cement and growth achieved in Zimbabwe and Botswana. On a like-for-like basis, excluding Safika Cement, group cement volumes would have recorded single digit declines against the comparable period last year.
"The operating environment in South Africa remains tough on the back of weak economic growth, which has been exacerbated by power shortages, and increased competitor activity. Domestic sales volume growth in Zimbabwe and Botswana has shown an upward trend," according to PPC.
"However, in all territories muted selling price growth has been achieved. The lime division has shown an improved performance with new business secured and higher off-take from the steel and alloys industries, while the aggregates division has been impacted by reduced demand from project related customers."
Pronto Readymix, consolidated from July 2014, has positively contributed to the group results.
"While the South African trading environment will remain tough and highly competitive, we believe that our various response strategies have positioned PPC well to limit the impact on the group. The release of major infrastructural projects in South Africa, Botswana and Zimbabwe would provide a key driver for demand of cement products," said PPC.
Earnings per share for the first half of 2015 are anticipated to reflect a year-on-year decline mainly due to last year's once off tax credit combined with increased finance costs in this year. Any forecast financial information on which this trading update is based has not been reviewed by the company's auditors.
