Hulamin expects earnings to plummet

HULAMIN , the aluminium processor that recorded R7bn in revenue in the 2008 financial year, yesterday said its year-end earnings were likely to decline after a “most difficult” first half. In a profit warning, the group said earnings per share were expected to fall about 226% to 38c for the year to December compared with 124c a year earlier. Hulamin earnings were eroded by weak sales , the strong rand and a low aluminium price . Hulamin said in July that the global recession had severely affected demand for its products. The group is exposed to the automotive, construction, general engineering and transport sectors. Yesterday, Hulamin said market conditions had shown “ improvement and all operations are well loaded going into 2010”. It said the company had achieved improved earnings in the second half , notwithstanding the significant strengthening of the rand, which made local exports look expensive. Hulamin also said yesterday the R970m rolled products expansion had been completed “ahead of schedule” despite the slump in volumes. artwelld@bdfm.co.za HULAMIN Interim 2009 2008 Revenue (Rbn)2,11 3,57 Pretax (Rm) 40 226 Net Income (Rm)24 185 Headline EPS12c 84c Dividend PS (—) 28c