WEDNESDAY, 11.00AM:
JOHNNIES Industrial Corporation (Johnnic), the industrial holdings group, is considering expanding into the financial services sector, chairman Cyril Ramaphosa said on Tuesday.
Ramaphosa said financial services is a high-growth sector and Johnnic has the “firepower” necessary to enter the sector. Further details will be announced in due course.
Johnnic increased headline earnings for the year to June by 13% to 325c per share, excluding exceptional items and profit from disposal of assets, mainly as a result of strong growth from its property division. A final dividend of 80c (1996: 72c) was declared to bring the total for the year to 101c (90c).
Exceptional items — a R214,6-million profit from the sale of Johnnic’s stake in Toyota and R54-million in exceptional items of associated companies — raised attributable earnings by 57% to R766,7-million. Turnover was iup by 56% to R435,9-million, while pretax net income was up 44% to R181,5-million.
BUSINESS BRIEFS
AIDS DEATHS INCREASE The number of Aids-related deaths in SA is expected to top 90 000 within the next year. So said Metropolitan Life employee benefits actuary Deane Moore at an HIV?Aids conference in Johannesburg on Tuesday. Moore said the direct cost of Aids will be felt in rising employee benefit and medical aid costs, which he said will double over the next 10 years.
EL NINO AFFECTS MAIZE PLANTING THE National Maize Producers’ Association says some SA farmers have begun planting maize six weeks earlier than usual amid fears of a drought next season brought on by the strong El Nino effect being recorded in the Pacific Ocean. Nampo added that the acreage being planted for the 1998 season is also expected to be lower than this year as farmers plant only on their most moist land. “Some farmers have said that with the first rains they will start planting because of the possibility of an El Nino, as they are trying the spread their risk,” said Nampo chairman Japie Grobler. “I believe we will see some planting going on in September where we usually don’t see a lot.” The SA planting season usually begins in October and November.
GOVT DEBT ON TRACK LATEST figures published by the finance department show government remains ahead of schedule for gross reserves financing for the year of R36,5-billion. Five months into the financial year, the department said it had already raised R26,5-billion, leaving it to raise only R10,4-million in the next seven months.
TRANSNET BOARD OKs NEW FIRMS The board of Transnet has approved the establishment in the next six months of two new operating companies concentrating on fleet management and high technology, group chairman Mafika Mkwanazi said on Tuesday. Mkwanazi told parliamnet’s transport committee the companies will be semi-independent entities using Transnet resources, but not enjoying any preferential contracts.
BID TO DELAY KWV CASE LAWYERS for both Agriculture Minister Derek Hanekom and wine co-op KWV approached the Cape High Court on Tuesday for a further postponement of the civil case over the co-op’s restructuring plans. They requested a postponement to September 10. Hanekom is attempting to block KWV’s conversion to a company, saying some of its assets belong to the state.