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In a busy day for corporate news, KAP Industrial lifted on Wednesday as it reported its profits fell, but so did debt. African Rainbow Minerals slipped after detailing how hard it's been hit by the downturn in commodity prices. In international news, Vodafone is eyeing an exit from Italy.
Diversified industrial group KAP Industrial reported on Wednesday that revenue fell 2% to R15 billion in its six months to end-December, and headline earnings per share 36%, but it still managed to cut its net debt by R708 million to R9.2 billion. Cash flow from operations increased by more than 100% to R790 million, primarily as a result of a meaningful improvement in net working capital, the company said, but it also faced higher finance costs as interest rates picked up. Performance during the prior period was supported by stronger global polymer margins, it added. Shares of KAP Industrial, valued at about R5.6 billion on the JSE, lifted about 1.4%, though they have still lost more than a third in the past year.
African Rainbow Minerals said it expects a between 40% and 50% fall in its headline earnings for its six months to end-December, hit by a decline in platinum group metal prices and lower thermal coal prices. This was partially offset by a weaker rand and higher average realised export iron ore prices. The miner also warned of writedowns of its assets, with basic earnings expected to fall as much as 80% to R878 million, notably due to a just over R1 billion impairment of property, plant and equipment at Two Rivers. Shares in the miner, valued at about R37.5 billion, fell 2.2% and lost more than a third of their value in the past year.
