/ 22 April 2004

Iscor shares slump after results

Shares in South African steel producer Iscor, which were already under pressure, extended their losses on Thursday afternoon after the group released its results for the March quarter.

At 2.23pm, Iscor shares were trading at R36, down 5,26% or two rand from their previous close. They had been trading at R37,20 just before the results were released on the Stock Exchange News Service.

Iscor reported headline earnings per share (HEPS) of 150 cents from 147 cents in the comparable quarter in 2003.

Revenue rose to R4,87-billion from the March 2003 quarter’s R4,63-billion.

Iscor said that during the period under review, the improvement in global steel prices offset the negative impact of the stronger rand, which averaged R6,75 per dollar from R8,32 per dollar in the corresponding period.

Expressed in dollar terms headline earnings improved by 25%.

Looking ahead, Iscor said that the higher level of prices would have a positive effect on second-quarter earnings, although the full impact would be tempered by any strengthening of the exchange rate. — I-Net Bridge