TUESDAY, 11.00AM
LOW prices, production problems and continued losses from Columbus Stainless saw Samancor’s profits nosedive 40% to R409-million in the year to June.
The manganese producer, which is the steel and ferralloys division of Billiton, produces as its main products stainless steel, manganese alloy and chrome, which have all been weak on world markets. Said group MD Wilrich Schroeder: “The overriding reason [for the drop in profits] was the low prices in all our major markets.”
Samancor’s latest results were in line with a profit warning issued earlier this year, and final earnings per share were 127c against analysts’ expectation of around 114c (1996: 302c).
The profit fall would have been even higher were it not for abnormal items, with the sale of non-core assets realising R167-million, compared with R102-million last year. Earnings a share after abnormal items fell to 214c from last years 355c.