Africa’s largest sugar group, Illovo, on Thursday announced that it expects its headline earnings and earnings per share for the year ending March 31 2005 to be between 50% and 60% lower than the previous year.
The existing I-Net Bridge consensus of analysts has Illovo producing 2005 headline earnings per share of 46,4 cents, down 38% from the group’s 2004 headline earnings per share of 75 cents.
“The lower forecast results, compared to those anticipated in the interim report, have been negatively impacted by the much stronger rand compared to levels at the end of September 2004 and the continuing strong performance of the currencies in the other countries of operation compared to the United States dollar,” Illovo said in a statement.
“These factors have severely reduced proceeds from exports, whilst the stronger rand has also negatively affected the translation of profits. In addition, sugar production is now estimated to be 1,78-million tons, which is 50 000 tons below the previous forecast, largely due to the greater than expected impact of the drought in South Africa and Swaziland,” Illovo added. — I-Net Bridge