Johannesburg | Monday
SOUTH African state-owned defence group Denel reported its first profit since 1997 on Monday, thanks to internal restructuring and an improved order book.
Denel posted an attributable profit of R24,1-million for the year to end-March 2001, compared to a loss of R206-million in the 2000 financial year. Sales in the 2001 year rose 14% to R3,8-billion.
”We achieved this result through an improved order book, progress in Denel’s turnaround exercise, combined with stringent cost control and improved financial management systems,” CEO Flip Botha said in a statement. He said Denel was still negotiating potential large system orders with foreign firms, which if successful would significantly boost export sales.
Denel is earmarked for partial privatisation by 2004. The government has selected BAE Systems and France’s Snecma/Turbomeca as preferred equity partners for divisions in Denel. It expects to wrap up contracts with the two by August. – Reuters