South African steel producer Iscor on Thursday once again touched a fresh all-time high, this time R47,80 a share, due to the group’s strong results released on Wednesday and the prospect of a possible special dividend of as much as R13 a share, as well as strong prospects.
At 1.15pm, Iscor’s shares on the JSE Securities Exchange (JSE) were quoted at R46,65, up R1,66 or 3,7% from Wednesday’s close of R44,99.
Iscor said it may repay capital of up to R13 per share, to reward shareholders after an excellent set of interim results.
“The return to shareholders will be in the form of a capital repayment of up to R13 per share, which is the current share capital, rather than as a dividend, which would attract secondary tax on companies. We will put a proposal to the board shortly,” Iscor CEO Louis van Niekerk told an investment analyst briefing on Wednesday.
Van Niekerk said the capital payout is unlikely to total the full R13 per share.
Earlier on Wednesday, Iscor reported a 36% increase in headline earnings per share to 348 cents for the half-year to June 2004, up from 256 cents in the previous comparative period in 2003.
Analysts surveyed by I-Net Bridge had expected earnings of 349 cents, with forecasts ranging from 271 cents to 380 cents.
Headline earnings for the half-year increased from R1,143-billion to R1,551-billion.
Looking ahead, Iscor said third quarter headline earnings were expected to improve on those of the second quarter, excluding the effect of the Business Assistance Agreement remuneration paid to LNM Holdings NV, which also has a 50% stake in Iscor. — I-Net Bridge