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Exxaro forecasts lower profit

Feb 22 2013 14:44 Reuters

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Johannesburg - Diversified miner Exxaro Resources [JSE:EXX] said on Friday it expects full-year earnings to drop by as much as 41%, worse than market expectations and sending its shares to a three-week low.

The company said it sees headline earnings per share, which exclude one-time items, to come in at between 1,261 and 1,443 cents a share, or 31% to 41% lower than the 2,098 cents achieved in the previous year.

A Reuters SmartEstimate had forecast a 28% drop in full-year earnings.

Exxaro said the drop in revenue resulting from the sale of its mineral sands and Rosh Pinah operations in mid-2012 led to the decline in headline earnings.

Exxaro shares were 2.2% lower at R170.19 at 12:08GMT, compared to a 0.06% drop by Johannesburg's blue-chip index.   

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exxaro resources  |  mining
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