Aveng earnings seen at 30-40% lower

Posted On Wednesday, 20 July 2011 02:00 Published by Commercial Property News
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Aveng advised that it anticipates that its earnings per share and headline earnings per share for the year ended June 2011 will be 30% to 40% lower than 480.3c and 483.6c of corresponding period.

Roger Jardine AvengConstruction group Aveng advised on Wednesday that it anticipates that its earnings per share and headline earnings per share for the year ended June 2011 will be 30% to 40% lower than those of the corresponding period ended June 2010 of 480.3 cents and 483.6 respectively.

"These results, which reflect the impact of the difficult trading conditions prevailing within the South African construction and infrastructure environment, have been compounded by certain problematic contracts at McConnell Dowell in Australia, particularly in the first half of the financial year and the effect of the relatively strong currencies in both South Africa and Australia," the company said in a trading update.

The anticipated reduction in earnings includes provision for the Competition Commission settlement in respect of two complaints involving Aveng Manufacturing: Steeledale which amounted to R129 million.

As anticipated, investment income has declined from the comparable period primarily as a result of decreased cash balances and lower prevailing interest rates, it said.

The performance in the second half was positively affected by an improved contribution from the McConnell Dowell and Trident Steel operations.

Aveng has continued to grow its order book in spite of the difficult market conditions. The two year order book amounted to R37 billion at 30 June 2011, being 23% higher than the 31 December 2010 order book.

On 15 April 2011, certain divisions of Aveng (Africa) Limited submitted applications relating to the Competition Commission's fast track settlement process.

"The company is unable to provide any further information until the Competition Commission has had the opportunity to evaluate the applications and has completed its investigation. Aveng remains committed to doing business ethically and will continue to co-operate and engage with the Competition Commission to finalise the settlement process."

Aveng's results are scheduled for release on Monday, 5 September and it will hold its annual general meeting on 3 November.

Last modified on Monday, 24 June 2013 22:51

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