A revaluation of a put option will bolster earnings when it reports its year-end results, says electronics company Reunert.
In August, the company indicated earnings per share, headline earnings per share and normalised headline earnings per share would be 17% and 27% lower than last year. The company said, at the time, that this was the result of lower volumes and deteriorating trading conditions.
However, yesterday, the company indicated earnings per share and headline earnings per share would be at the same level as last year. In 2008, basic earnings and headline earnings were 650.1c and 651.9c a share, respectively.
“This improvement in basic and headline earnings per share is due to the non-cash mark to market profit on the put option that Reunert has in respect of its investment in Nokia Siemens Networks,” the company says.
Normalised headline earnings per share, however, will be 18% and 23% lower than the previous year. Its results are expected to be released on 18 November, and will provide clarity on what Reunert has eliminated to reach normalised earnings.
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