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Barloworld Ltd (ticker: BAW, exchange: )
News Release -
17-Jan-2005
TRADING UPDATE - PPC Chairman's statement at the AGM PPC trading conditions in the first quarter of this financial year have continued to be very favourable and domestic cement sales volumes again grew ahead of expectation. Whilst the growth in demand during the October to December quarter was pleasing, the building sector is showing signs of strain, with shortages in both construction materials and tradesmen being reported. This is likely to temper the rate of growth in building activity and thus cement demand this year.
As expected, Porthold in Zimbabwe continued to experience difficult conditions, but both sales volumes and revenue were ahead of expectations and cash generation remained positive.
Lime volumes were marginally higher than the same quarter last year.
Prospects - We still expect that local cement demand is likely to grow at between 6% and 8% in the year ahead. The growth in cement volumes should enable the company to report increased operating profits for the full year. Net profit attributable to shareholders will however be impacted by a significantly higher level of secondary tax on companies (STC), arising from the increased level of special dividend, and is not expected to be materially different from 2004.
Strong cash flows are expected to continue, arising from increased profitability and the low capital expenditure forecast for 2005.
For further information please contact Peter Esterhuysen on +27 11 3869061 or email on pesterhuysen@ppc.co.za |
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Barloworld Ltd
