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Johannesburg - Allied Electronics Corporation (Altron) [JSE:ATN], advised in a trading statement on Tuesday that headline earnings per share for the year ending February 28 2010 are expected to be between 25% to 35% lower than the previous period.
The company said it expects diluted adjusted HEPS to be between 20% to 30% lower than previously.
Altron also advised that its basic earnings per share are expected to be between 32% to 44% lower than earlier. "This range may be subject to further change depending on the final values of the rand, various commodity prices at the year-end and the outcome of impairment testing to be conducted at certain Altron subsidiaries as part of the year-end process," it said.
Altron referred shareholders to its outlook statement contained in the 2009 interim results announcement, which contemplated continuing challenging market conditions over the short to medium term.
It said that Powertech had continued to experience difficult trading conditions.
"Volumes have remained depressed and pricing pressures have increased, negatively affecting operating margins. Capital projects continue to be delayed, while the ongoing strength of the rand has also had a detrimental effect on results," Altron said.
Bytes had, following the implementation of various corrective actions, delivered an improved performance during the second half of the financial year, which is broadly in line with expectations. "However, pricing pressures remain in many of its markets," the group said.
"Altech continues to deliver a good performance in what has been a tough trading environment, benefiting from, among others, sound strategic decisions and a high proportion of annuity income which has resulted in improved operating margins," Altron concluded.
Altron expects to publish its annual financial results on about May 3.
- I-Net Bridge
