Metair interim headline earnings decrease slightly
The strategy, which was put in place in 2012 involves deriving 50% of turnover from its original equipment manufacturing (OEM) segment; deriving 50% of turnover from after-market, non-automotive and exports, and deriving 50% of overall business from the battery sector.
In the six months to end June 2015 the company met its strategic targets, however, headline earnings saw a slight decrease. Metair reported diluted headline earnings per share of 110c for the period, down from the 119c reported at the end of June 2014.
Operating profit grew by 8% to R345.8m, while revenue increased by 9% to R3.5bn compared with the year-earlier period.
Increased shares in battery manufacturer
Metair said that during the period it had increased its shareholding in Mutlu Akü, the leading lead acid battery manufacturer in Turkey, to 100% and effectively de-listed the company from the Istanbul Security Exchange.
"Mutlu Akü produced an excellent result for the period under very challenging market conditions in the region and volatile currencies in our major export markets like Russia. The integration of Mutlu Akü is progressing according to the plans and objectives set by Metair," the company said.
Possible growth opportunities
Looking ahead, Metair said there were possible growth opportunities in the local market. "In SA (OEM segment), the group is focused on supporting one of our major customers in achieving a flawless launch of a new model. In the short-term, new model launches result in lower production volumes but in the long-term, depending on market acceptance and penetration, it could offer growth opportunities," said Metair.
It said the second half of the year was expected to be challenging due to the expected effect of major vehicle model changes in SA.
"Results will depend on model change effect, exchange rates, volumes, commodity price movements, seasonal winter demand and geopolitical conditions," the company said.
Source: BDpro