Hulamin Limited - Trading Statement
(Incorporated in the Republic of South Africa)
Registration Number 1940/013924/06
Share Code: HLM
ISIN: ZAE000096210
(‘Hulamin' or ‘the company')
TRADING STATEMENT FOR THE YEAR TO DECEMBER 2007
Hulamin has continued to grow its sales volumes, based on increased production of rolled products. The increase in rolled products sales volumes has been accompanied by improvements in the mix of products sold, and a slight weakening in the Rand in comparison to 2006. These factors have together contributed to an improved underlying operating performance by rolled products.
The company's projected underlying operating earnings in the second half of the year exceed those achieved in the first half, despite the recent strengthening of the Rand against the US Dollar.
The sharp increase in aluminium prices during 2006 led to the inclusion of a large metal price lag gain in the results for the year ended December 2006. The non-recurrence of this event, coupled with a lower contribution from the extrusions business, has resulted in forecast operating earnings, before corporate structuring costs, being lower than those reported for the year ended December 2006.
As advised in the interim results to June 2007, Hulamin has incurred once off corporate structuring costs of approximately R170 million, being primarily the IFRS2 cost on the introduction of the Black Economic Empowerment investors.
After expensing these exceptional costs, headline earnings for the year ended December 2007 are expected to be between R30 million and R44 million, with headline earnings per share (and earnings per share) being between 14 cents and 20 cents. The Hulamin pre-listing statement issued in May 2007 included reviewed pro-forma financial information for the year ended December 2006, which reflected headline earnings of R77 million and headline earnings per share (and earnings per share) of 38 cents.
The above information has not been reviewed or reported on by the company's auditors.
Audited results for the year ended December 2007 are expected to be announced on or about 12 February 2008.
6 December 2007
Pietermaritzburg
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
