Altron expects earnings drop

Listed electronics and technology group, Altron, says that it expects headline earnings to drop by as much as 16% for the financial half-year ended 31 August 2014.

Across its Altron TMT business, which comprises Altech and Bytes´ telecommunications, and other multimedia and IT businesses, the group produced pleasing results during the period under review, Altron said.

The arm showed a growth in headline earnings, with the integration of Altech and Bytes has yielding further significant benefits during the last six months.

Altech Autopage Cellular was an exception, having seen a decline in its profitability during the last six months – but a stronger second half is anticipated.

Strong performances were recorded at Altech Netstar and the Bytes businesses, the group said.

Altron Power (comprising the Powertech group´s businesses) also dragged on overall results, having experienced challenging trading conditions during the last six months.

“The four week NUMSA strike in July severely impacted the business and this was exacerbated by the preceding mining sector strike,” Altron said.

“Much of the decline was experienced in the Transformers business which also suffered from low demand and productivity issues.”

Altron Corporate also dragged, having incurred a higher interest charge during the last six months due to the borrowings taken on to acquire the Altech minorities in August 2013.

“Shareholders are advised that a reasonable degree of certainty exists that the company´s headline earnings per share for the financial half-year ended 31 August 2014 is expected to be between 10% and 16% lower as against the previous corresponding period.”

Altron’s interim financial results for the half-year ended 31 August 2014 are expected to be announced on or about Wednesday, 8 October 2014.

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Altron expects earnings drop