Allied Electronics Corporation (Altron) says two of its business units are continuing to experience difficult trading conditions.
The company on Friday published a business update and indicated Altech and Powertech's Aberdare cable unit are still battling tough economic conditions. The company says Bytes is trading in line with expectations.
Powertech's Aberdare Cables has continued to experience difficult trading conditions in its power cables business as a result of the continued “depressed state of the building and construction sector”, and is experiencing pricing pressure, says Altron.
Industries exposed to building and construction will continue to face challenging times, says Altron, based on recent economic data. The rest of Powertech's operations have traded according expectations, and the unit is “well positioned to capitalise on future growth opportunities when the markets turn,” says Altron.
Bytes' trading conditions and markets have not changed significantly from when the half-year results were published, and the unit is trading in line with expectations. However, Altron's performance has not improved as expected, says Altron.
In October, Altron published its half-year results to August, and said revenue declined 3%, to R11.7 billion, as the weaker performance of subsidiary Altech weighed on growth.
However, despite the lower turnover, net profit improved 3%, to R417 million, and basic earnings per share jumped 21%, to 93c. Headline earnings per share grew 6%, to 99c, mostly as a result of the improved contributions from its 100%-owned subsidiaries Bytes and Powertech.
Altron said in its results commentary that the second quarter of the reporting period showed a broad-based recovery in market conditions, although this was at “relatively muted and inconsistent levels”.
The company's shares closed flat on Friday, at R28.69. Its full-year results for the year to February will be published by the end of May 2011.
Share
