Cement company PPC expects its earnings for the first half of this year to decline due to a weak trading environment‚ a one-off tax credit in the last financial year and increased finance costs this year.
“The operating environment in South Africa remains tough on the back of weak economic growth‚ which has been exacerbated by power shortages‚ and increased competitor activity‚” the company said yesterday.
“Domestic sales volume growth in Zimbabwe and Botswana have shown an upward trend. However‚ in all territories muted selling price growth has been achieved.”
PPC said headline earnings per share would fall between 25% and 45% to between 53c and 73c compared with the year-earlier period.
Its board was considering the merits of the merger proposal received from AfriSam late last year.