Last checked at 20 Jul 2012 15:57
AECI LIMITEDIncorporated in the Republic of South Africa(Registration No. 1924/002590/06)Share code: AFE ISIN No. ZAE000000238("AECI" or "the Company")
TRADING STATEMENT
In compliance with the JSE Listings Requirements and following the guidance provided to the market in the SENS announcement dated 1 June 2012, shareholders are advised that, for the six months to 30 June 2012 ("the period"), AECI's headline earnings per share ("HEPS") are expected to be between 57% and 62% lower than those achieved for the first half of 2011 ("corresponding period"). Earnings per share ("EPS") are expected to be between 54% and 59% lower than that of the corresponding period.
AECI's B-BBEE transactions effected during the period resulted in HEPS and EPS being reduced by the recognition of IFRS 2 share-based payment expenses of R148 million. The calculation of HEPS excluding the effects of these B-BBEE transactions is expected to be between 7% and 12% lower than that of the corresponding period, mainly due to the following:
- Mining and manufacturing production have remained volatile in a demanding global operating environment, with mining in South Africa experiencing a number of disruptions.
- AEL Mining Services has experienced some raw material and production difficulties at its nitric acid plants in Modderfontein and has also not met the production targets set for its ISAP plant. Although the business has responded appropriately, it expects that operating profit will be about 9% lower than that achieved in the corresponding period.
The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.
Woodmead, Sandton20 July 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)