Africa’s biggest iron ore producer Kumba Iron Ore forecast lower than expected first-half earnings per share, triggering a 4% fall in its shares.
Kumba, majority owned by Anglo American, said it expected headline earnings per share and EPS of between R8,40 and R9,38 for the first half of the year versus R5,02 in the year-ago period.
Some analysts had hoped for even bigger earnings numbers.
”We had expected about R26 for the full year, and they have reported about R9 for the half year, so it implies they would have to do a lot to increase their earnings,” Garth Mackenzie, a trader at BoE Securities said.
”That’s why the shares have been hammered. A lot of people were in the stock hoping for decent numbers. I expect more downside on the shares in the coming days.”
Kumba’s share slid as much as 4%, and were 3,83% lower at R276 by 10.51am GMT, against a 0,47% gain in the blue chip Top-40 index.
Headline EPS, the key profit measure for South African companies, excludes non-trading, capital and certain extraordinary items.
Kumba said in a statement its headline earnings and basic earnings for the period, after adjustments, were seen at between R2,66-billion and R2,970-billion.
Comparable headline earnings and basic earnings reported for last year were R1,578-billion and R1,579-billion respectively.
Kumba will issue its results on July 24. – Reuters