WEDNESDAY, 12.00NOON:
DESPITE sliding into the red on the back of decreased iron ore exports, production problems at its Vanderbijlpark plant and continuing losses at its Pretoria works, Iscor has beaten market expectations by reporting headline earnings of R384-million, or 15,2c a share, for the year ending June 30.
The previous year’s 25c a share earnings could not be matched because of the Vanderbijlpark production difficulties, the losses at the Pretoria works and the fall in iron ore exports because of bottlenecks on Iscor’s Sishen/Saldanha railway line. Hefty interest charges also took their toll as the group slid into debt to fund its share of the R7-billion Saldanha Steel Project.
Exceptional items for the year resulted in a loss of R992-million after tax, mainly due to the R1 055-million written down to losses on discontinued operation at the Pretoria works. However, analysts see the closure of the Pretoria works as a positive step which will imporve future operating income.
Executive chairman Hans Smith added that the Vanderbijlpark works are now “running like a sewing machine”. He said that this, together with improved tonnage on the Sishen/Saldanha line will result in improved performance next year.