SHARES in chemicals and explosives group AECI fell by nearly 3% on Tuesday ahead of the company’s announcement of its 1998 results. Analysts expect AECI to drastically cut its dividend and earnings per share, with the firm weighed down by rising debt and the restructuring of its business lines. It has already warned that its headline earnings for 1998 will be below its 1997 performance when the firm posted a net attributable income of R381-million.
MAPUTO STEEL MILL STOPS
MAPUTO’S largest privatised steel mill, CSM, ground to a standstill on Monday after it failed to pay its $50000 electricity bill. All 450 workers were ordered home after the publicly-owned electricity utility company, EDM cut power to the mill, on Monday morning. CSM director, Joao Garochine, confirmed on Tuesday that he had removed computers from the darkened steel mill so that he could process worker’s wages and other admin at home. He refused to comment on reports of severe financial crisis at CSM but confirmed that the mill’s management expected power to be off for at least one week. There have been rumours that the mill has squandered a $17-million soft loan from government in 1994 and is having trouble repaying it.