Allied Electronics Corporation (Altron) has cautioned shareholders that earnings for the year to February are expected to be lower.
The company says, however, that this could change depending on currency movements. In an announcement, Altron says basic earnings per share are expected to be between 32% and 44% lower. Last year, earnings per share were 266c.
Headline earnings per share may be between 25% and 35% lower, while adjusted headline earnings - stripping out amortisation of intangibles of recent acquisitions - are expected to be 20% to 30% lower. Last year, headline earnings per share were 257c and adjusted headline earnings per share were 295c.
Altron says some of its divisions have continued to experience challenging market conditions, such as Powertech, which has seen volumes down, and pricing pressure that has trimmed margins. “Capital projects continue to be delayed, while the ongoing strength of the rand has also had a detrimental effect on results.”
Bytes' performance in the second half of the year has improved, after the company took “corrective action” and the business is now performing in line with expectations. However, it is still experiencing downward pricing pressure.
Continuous growth
Meanwhile, Allied Technologies (Altech) is continuing to perform strongly. In a separate announcement, the subsidiary says there are positive factors that will aid its results for the full year to February.
The company says both headline earnings per share and adjusted headline earnings per share are expected to show positive growth compared to last year. Last year, headline earnings were 571c and adjusted headline earnings were 592c.
The company did not disclose the expected percentage improvement, but JSE rules only require companies to inform shareholders when the change will be 20% or more.
“Altech is currently operating well and has experienced growth in revenue and profits for the financial year, assisted by both its high level of recurring income and its strong financial position,” says the company.
However, basic earnings per share are expected to be lower because of an impairment of certain intangible assets in a subsidiary. Last year, earnings per share were 569c.
Altech's results are expected to be released on 20 April, while Altron should publish its results on 3 May.
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