The strengthening rand is having a negative effect on Grintek, whose half-year earnings are expected to be significantly lower than in the previous year.
The group issued a first-quarter update yesterday saying that turnover for the first half is expected to be higher than the previous year although prevailing conditions in the telecommunications sector will have a negative bearing on achievable margins.
"The results expected for the first half of the year should be viewed in the light of earnings generated in the six months to 31 December 2001, which were positively influenced by a dramatic weakening of the rand last December," it says.
Turnover for the first quarter was marginally up on that of the same period last year.
The group says prevailing general market conditions in the telecommunications and IT sector continued to restrain prospects for growth in that area, while the defence electronics business performed well on the back of a strong long-term order book.
It says the business remains healthy and well positioned for long-term growth.
Grintek has also announced that Telkom, US-headquartered Clarent Corporation and Grintek Telecom have entered into a joint marketing agreement.
The agreement focuses on advancing the deployment of Clarent-based voice over IP solutions across Africa.
Telkom and Clarent are to establish a joint marketing fund to support the development and implementation of a co-operative marketing strategy.
Wally Beelders, Telkom`s managing executive for international and special markets, says the agreement is a natural extension of Telkom`s existing relationship with Clarent and Grintek.
Grintek Telecom, a Telkom gold supplier, has been designated by Clarent as local partner in SA.
In addition to contributing technical skills in system design and solution implementation, Grintek plans to support local marketing activities and lead semi-annual technical and sales training.
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