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Hulamin’s headline profit to triple

| Supplier news

Hulamin expects a boost of more than 100 percent to its bottom line after an especially good second half.

In the year to December, the listed aluminium producer expects earnings per share to gain at least 127 percent to 116c, while headline earnings per share are expected to more than triple, growing at least at 208 percent to 114c.

Headline earnings per share are a key indicator of a company’s performance as this figure strips out once-off or non-core items.

Normalised earnings per share are expected to gain 107 percent to at least 114c, Hulamin said in a statement on Monday.

The company says it “performed particularly well in the second half of the year, despite the strengthening of the rand, to deliver a record operating profit for the full year”.

This, it says, was achieved in a relatively stable price environment.

It notes Hulamin Rolled Products benefitted from consistent investment in “operational excellence and risk management” to achieve record sales volumes of 214 000 tons for the year.

It showed “strong improvements in yields/recoveries, unit costs and in the mix of high value products, particularly can end stock and heat treated plate.”

Hulamin says this provides a solid base for further focus and improvements going into 2017.

Local sales of rolled products increased to more than 70 000 tons.

“Sales of can body stock improved strongly in the second half after the slow start to 2016. This increase in demand allowed for an increase in scrap purchases and improved utilisation of Hulamin’s recycling capacity in the second half.”

Hulamin adds its Extrusions and Containers units also both performed better in 2016.

The listed company adds its cash flow improved further in the second half and it trimmed net borrowings further by some R350 million after closing at R952 million at the end of June 2016.

“Hulamin is focused on maintaining the positive momentum in the business, increasing rolling margins (selling prices), improving operational performance and making further reductions in manufacturing cost.”

Its results will be published on February 27.


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