AECI earnings may have fallen a third due to Covid-19
Chemicals group AECI said on Friday that it expects half-year earnings to have dropped by more than a third, citing the impact of Covid-19 in the sectors it caters for.
AECI, which is headed by CEO Mark Dytor, said it expects headline earnings per share and earnings per share to have fallen by between 30% and 40% in the six months to end-June, to between 219c and 257c.
The company said earnings per share were also affected by the impairment of goodwill, property, plant and equipment amounting to R69m. This was offset by the R108m profit on disposal of AECI’s paper chemicals business unit, which was completed during the period under review.
“The timing and extent of a meaningful recovery remain uncertain, particularly in SA’s manufacturing and mining sectors, where challenging trading conditions prevailed prior to Covid-19,” AECI said in a trading statement.
AECI’s share price fell 2.94% to R80.20 on Friday; it has fallen 25% so far in 2020.
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