Transport parastatal Transnet has reported increased turnover of R41,278-billion and operating profit of R7,896-billion for 2003 — up from R35,811-billion and R3,209-billion respectively in 2002.
Transnet group chief executive Mafika Mkwanazi said, in the latest annual report tabled in Parliament on Tuesday, this positive performance was marred by a stronger than expected rand, which resulted in revenue achieved being 1,5% less than expected.
”The major impact of the rand’s strengthening was felt in our aviation business, which is the most exposed to the volatility of the rand,” he said.
South African Airways reported turnover of R16,324-billion (up from R13,664-billion in 2002), and a loss of R6,197-billion (down from last year’s before tax profit of R2,362-billion).
SAA CEO Andre Viljoen says this was mainly the result of the negative impact on the airline of the slow down in the global economy, war in Iraq, and the Severe Acute Respiratory Syndrome (Sars) virus.
Management constantly monitors the impact on demand as a result of these factors, and will implement strategies to negate the financial affect on SAA, Viljoen says.
However, in stark contrast to the trend in world aviation, SAA still managed to increase passenger volumes — except in flights to the United States — improve yields, and control costs, Mkwanazi says.
”The good news regarding SAA’s enhanced operating results was eroded as SAA unfortunately earned a R2,6-billion loss before tax as a consequence of a charge against profits of R6,5-billion as a direct result of the significant strengthening of the rand.”
Spoornet’s — the world’s largest freight railway operator outside the US — turnover increased from R10,714-billion in 2002 to R11,831-billion last year, but profit before tax was down from R779-million to R400-million. – Sapa