Last checked at 12 Oct 2012 07:00
AECI LIMITEDIncorporated in the Republic of South Africa(Registration No. 1924/002590/06)Share code: AFE ISIN No. ZAE000000220("AECI" or "the Company")
TRADING STATEMENT
In compliance with the JSE Listings Requirements, shareholders are advised that, for the year ending 31 December 2012 ("the period"), AECI's headline earnings per share ("HEPS") and earnings per share ("EPS") are expected to be more than 20% lower than the prior corresponding period owing to of the following:
- The current strike action in the mining and transport industries is resulting in significant disruptions across many sectors, and is having a particularly detrimental effect on mining and manufacturing production which was already under pressure due to prevailing global trading conditions.
- AECI's Broad-based Black Economic Empowerment ("B-BBEE") transactions were effected during the period, as reported in AECI's results for the six months ended 30 June 2012 published on SENS on 25 July 2012. HEPS and EPS will be impacted by the recognition of costs of about R163 million in terms of International Financial Reporting Standards. The combined effect of these charges and the additional 4,7 million AECI ordinary shares issued in terms of the B-BBEE transactions is estimated to be a reduction in HEPS of 146cps for the period.
Given that it is relatively early in the reporting period, a range as required by the JSE Listings Requirements cannot be accurately estimated at this stage. Shareholders are advised that a further trading statement will be released on SENS in due course to provide earnings forecast ranges for EPS and HEPS.
AECI's results for the period are expected to be released on SENS in February 2013.
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, Sandton12 October 2012Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)