Africa’s biggest shipping company, Grindrod, posted a 56% fall in first-half headline earnings per share as the global economic slowdown hit cargo volumes and rates.
Grindrod, which drives more than 80% of its profit from shipping resources such as iron ore, coal and fuel, said on Thursday headline EPS for the six months to end-June fell to 105,7 cents, in line with its own forecast for a 50% to 60% fall.
The company said its earnings were hit by recession, lower trade volumes, declining commodity prices and continued lack of credit.
Grindrod, whose other activities are commodity trading, financial services and freight logistics, said it expects full-year earnings to be lower compared with the previous year.
The 99-year-old Durban-based company, which has warned of a ”horrible” shipping market during this fiscal year, said the results were further hit by a stronger rand currency against the dollar.
The company said on Thursday it expects earnings growth from its trading, freight services and financial services business for the full year. — Reuters