Cement maker PPC increased first-half headline earnings per share by 16% as infrastructure and affordable housing projects drove cement demand, the company said on Wednesday.
PPC reported headline EPS — a key profit measure for South African firms which excludes non-trading, capital and certain extraordinary items — of 126 cents and a 9% increase in operating profit to R1,077-billion.
”The number and size of infrastructural projects … bodes well for industry cement demand in the medium-term and is expected to reduce the impact of the current slowdown in the residential sector,” Pretoria Portland Cement (PPC) said.
The company said its 1,25-million tonne Batsweledi expansion project at Dwaalboom had experienced delays because of heavy rainfall earlier this year, which had affected its safety conditions.
”We thus expect plant commissioning to commence towards the end of June 2008,” PPC said.
It added that while regional demand had declined by 1,3% for the period, it expected to report a good performance and strong operating cash flows for the full year. – Reuters