JSE-listed Allied Electronics Corporation (Altron) has told shareholders that it expects to see its interim earnings up by as much as 50%.
The company issued a statement yesterday in which it said there is a "reasonable degree of certainty" that its headline earnings per share and basic earnings per share for the half-year ended 31 August 2006 are expected to be between 45% to 55% when compared against the previous financial year.
Altron said the "key driver of the improved performance has been a significant increase in demand for Altron`s infrastructure-related products offered through our 100%-owned subsidiary, Powertech".
It said this demand was driven by requirements from local government and parastatals, as well as the strength in the building and construction sector. "The restructuring process undertaken in the previous financial year, that saw a reduction in Powertech`s cost base as a result of our exit from certain loss-making entities, has also contributed to the current period`s growth."
The JSE requires companies to publish a trading update as soon as they are satisfied their results will differ by at least 20% from the previous period.
Earnings up too
Altron subsidiary Bytes Technology Group, which is 57.6%-owned by the group, has also indicated that earnings for its half-year are expected to be higher than its previous interim results.
The company told shareholders yesterday that headline earnings per share for the half-year ended 31 August 2006 are expected to be between 22% and 27% higher than those of the corresponding period last year. Earnings per share are expected to be between 27% and 32% higher.
The company, which is finalising its interim results, expects these results to be published around 4 October. Altron`s interim financial results for the six months ended 31 August are expected to be announced around 10 October.
Altron`s headline earnings per share for the six months at the end of August last year were 16% up at 81c. Its basic earnings per share were 54% up at 84c. Its share closed at R27.25 on Monday, down from Friday`s close of R27.50. Its 12-month high is R32.50 and its 12-month low is R19.40.
Bytes reported headline earnings per share of 46.5c in its last interim results to end August 2005. This was a 31% increase. Its share closed at R13 yesterday, down from Friday`s close of R13.15 and off its 12-month high of R13.80. The company`s 12-month low is R9.30.
Related story:
Good year for Altron
Share