Control Instruments' results for the half year to June are expected to show a reduction in loss per share, says the electronics company.
In a Stock Exchange News Service announcement, the listed company says the loss is expected to reduce by between 55% and 65%, compared to the loss per share of 23.2c in the first half of last year.
Its headline loss per share is expected to reduce by under 10%, compared with the 9.4c headline loss per share in the same time last year.
“Conditions in the first quarter of 2009 were extremely tough. However, it appears the worst is behind us,” the company says. It adds that those sectors of the automotive industry in which its subsidiaries operate are stabilising.
Trading conditions improved in the second quarter of 2009 and indications are that this is continuing, it says.
Improvement ahead
The company's after market business, which provides electronics for vehicles once they leave the dealer's showroom, is returning to more normal levels of operation. The original equipment manufacturing sector is showing the first signs of an upturn. Initial orders for Pi Shurlok's OpenECU products are ahead of expectations, it adds.
Control Instruments business Pi Shurlok supplies a package of electronic products and services to vehicle manufacturers worldwide.
South African vehicle sales have been declining for some time. Earlier this month, the National Association of Automobile Manufacturers of SA said 30 731 units were sold in July, a 27.4% year-on-year decline.
The Congress of South African Trade Unions noted “sales have now been falling every month since April 2007”. It added that vehicle exports fell by 60.3% over the year to July.
Control Instruments says it has started to consistently generate cash during the second quarter. This is expected to continue for the remainder of the year, assuming nothing untoward happens in the economy, it adds.
The group's results for the six months to 30 June are expected to be published around 28 August.
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