PPC profit up 28 percent

| Wednesday November 10, 2010 00:00

 

PPC, which has been producing cement for the last 118 years and has been listed in Johannesburg for a century, said yesterday headline earnings per share (EPS) for the year to end-September rose to 217c, within its forecast range of a 20 percent to 30 percent increase.

Headline EPS is the main gauge of earnings in South Africa and strips out certain one-time and financial items.The group, which supplies cement to infrastructure projects such as Eskom's Medupi power station, said revenue rose marginally to R6,8-billion, versus R6,7-billion a year earlier.

The company said it was helped after charges last year related to a black empowerment transaction were not repeated this year.

PPC is gearing up for competition from a Chinese-South African joint venture, which is building a R1,65-billion cement plant in South Africa.

It also faces competition from Nigeria's leading industrial conglomerate, Dangote Group, which had invested 779 million rand to more than treble its stake in South Africa's Sephaku Cement to 64 percent.Shrinking of the construction industry has already forced cement manufacturer Lafarge SA to initiate a 13 percent cut of its workers at its Lichtenburg plant in South Africa.

Shares of PPC are little changed so far this year, underperforming a 13,7 percent increase in Johannesburg's All-share index.-(Reuters)