Diversified chemicals solutions company AECI expects to report significantly stronger financial results for the six months to end-June after trimming its operations in recent months.
In a trading statement on Wednesday, the group predicted that interim headline earnings per share (HEPS) would be more than double those of the previous first half at 595c-613c.
The company has put up several businesses for sale this year as it reshuffles its strategy to focus purely on its mining and chemicals businesses.
Last week, the group sold its food and beverage business to an SA-based private equity fund, with the disposal expected to be finalised later this year.
At the same time, AECI disposed of Schirm USA, a chemical toll manufacturer in the US, for a total consideration of $60m (R1.05bn), and sold assets at its Schirm Germany site in Baar-Ebenhausen, a move which is expected to save about €3m (R61m) in restructuring and environmental costs.
Together, these disposals resulted in around R320m in impairments being reversed, giving the group’s balance sheet a boost as it prepares to release its interim results.
According to statements from earlier in the year, the company has also found buyers for Much Asphalt, Animal Health and its public water business.
With these gone, the company expects to report a 24% increase in earnings before interest, taxation, depreciation and amortisation (ebitda) from continuing operations.
The group’s mining division expects to record a 14% jump in ebitda, driven primarily by improved margins in its international business, while its property services and corporate unit is set to report a 59% improvement in its ebitda loss.
AECI chemicals, however, continued to face a challenging trading environment this year, with ebitda set to fall 32% year on year.
AECI, SA’s largest explosives producer, expects to release its final interim results on July 30.
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