AG Industries expects HEPS up 25-30%

Industrial holding group AG Industries expects its headline earnings per share (HEPS) for the six months to end-December 2004, to be between 25 and 30 percent higher than those for the year-earlier period.

AG Industries is the holding company for a group of local and international companies that fabricate and distribute value-added glass and aluminium components.

The company has a large share of South Africa's flat glass market and is active in more than 40 other countries internationally

Strong demand, increased revenues

In a statement on Thursday, the group also said it is forecasting a 45 to 50 percent increase in its basic earnings per share for the six-month period.

Providing a brief update on trading conditions for the six months to end-December, AGI said the South African market had been robust with strong demand for its products.

Double-digit volume growth, particularly in the Aluminium and Value Added Glass Divisions, resulted in a 22 percent increase in revenues.

Gross margins increased slightly, even with inflationary cost increases and no corresponding inflationary increase in selling prices.

Increased efficiencies

This was as a result of increased plant efficiencies, which drove down the cost per unit.

The overhead-to-revenue ratio remained unchanged, and operating margins remained at a similar level to those a year earlier.

The group expected its domestic performance to remain strong for the next six-month period as well.

Strong rand hurt export revenues

Internationally, meanwhile, export revenues had been constrained over the past reporting periods due to the strength of the rand.

AGI, whose focus over the past years had been on an export strategy, had been forced to place less reliance on export revenues.

As a result, export revenues and margins had decreased and factories geared around these exports had shifted focus to service the strong growth in domestic markets.

In addition, the international businesses had established strong trade links and operate independently and as stand-alone business units.

Favourable product mixes in Germany and Denmark had resulted in losses being contained, and a steady growth in more profitable lines was expected to return these businesses to profitability.

The UK had performed well, increasing revenues and margins and producing a record set of results.

The US, meanwhile, operated at a marginal loss for the reporting period. AGI is planning to publish its results for the six months to end-December on March 8.

600450 AG Industries expects HEPS up 25-30% glassonweb.com

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment