1 Feb 2008 12:00
AECI LIMITED
(Incorporated in the Republic of South Africa)
Registration No. 1924/002590/06
Share code: AFEISIN code: ZAE00000020("AECI" or "the Company")TRADING STATEMENT
AECI is currently finalising its results for the year ended 31 December 2007, which are due to be released on SENS on 26 February 2008. In this regard, shareholders are advised that headline earnings per share are expected to be 10% to 15% below the lower range (400 cents per share) of the guidance provided to the market in the SENS announcement dated 28 November 2007.
This is attributable to two property transactions which were in progress but which were not completed prior to year end as anticipated. It is expected that both sales will now take place in 2008.
Attributable earnings per share are expected to be approximately 30% below the lower range (560 cents per share) of the previous guidance. This is the result of the above property transactions as well as an increase in the impairment provision for SANS Fibres. The impairment provision is a non-cash item in which the book value of the fixed assets has been written down to the projected discounted cashflows of the business units or anticipated sales value. The provision has been increased to include the PET assets, based on current trading and outlook, and assets of the nylon businesses in the USA and South Africa for which indicative sale offers have been received.
Woodmead, Sandton
1 February 2008
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
AECI LTD