Electronics group Reunert`s headline earnings per share fell by 20% to 183.5c in the year to September, mainly because of losses at associate company Siemens Telecommunications (Sietel).
<B>Salient figures</B>
Reunert results for the year to 30 September 2003.
Previous year`s figures in parentheses.
Revenue: R6.1b (R5.06b)
EBITDA: R712.3m (R559.7m)
Operating profit: R607.7m (R472.1m)
Profit before tax: R652.9m (R489.9m)
Profit after tax including associate companies: R345.9m (R402.2m)
Attributable earnings: R295.4m (R370.6m)
EPS: 156.9c (198.1c)
HEPS: 183.5c (229.5c)
Current assets: R1.84b (R1.65b)
Cash and equivalents: R481.4m (R280.7m)
Current liabilities: R2.29b (R2.08b)
Cash generated from operations: R653m (R193.7m)
Revenue increased by 21% to R6.1 billion from a previous R5.06 billion, while after-tax profit was 37% higher at R428.5 million (2002: R312.6 million). However, the group`s share of associate companies losses amounted to R82.6 million, compared with a prior year profit of R89.6 million.
With associate companies` losses included, the group recorded an after-tax profit of R345.9 million, 14% down on the previous year.
Reunert CEO Boel Pretorius says the strong performance of the Reunert-managed businesses was not enough to offset the difficulties experienced by Sietel. While Sietel was the main culprit behind Reunert`s earnings decline, the adoption of the AC 133 accounting standard also contributed.
In the electrical engineering operations, Circuit Breaker Industries and African Cables achieved record profits, although a slump in demand for telecommunications cables affected ATC, sparking a major restructuring.
Pretorius says all the electronics businesses except consumer electronics performed above expectations.
"Siemens Telecommunications, ATC and Panasonic are all expected to return to profitability and should therefore influence group results positively for the new financial year. All other businesses are expected to produce moderate growth over this year`s high base with the exception of Reutech, which will be hard pressed to repeat its recent past performance. Consequently, continued growth should be achieved in the new year."
The Reunert share was trading at R18.80 on the JSE by midmorning today, up 40c or 2.17% from yesterday`s close.
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