ANNUAL RESULTS
AECI able to stand ground despite headwinds and drought
Profit at the chemicals and explosives group's core businesses records solid growth
Chemicals and explosives group AECI saw profits in the year to December 2016 hit by negligible growth in South African manufacturing and drought in the regional agricultural sector. Revenue crept up 1% to R18.6bn. Operating profit slumped 22% to R1.3bn, as headline earnings per share fell 9% in the period. The result was also variously affected by the sale of parcels of land in Somerset West in 2015, which had lifted headline earnings per share. Meanwhile, the derisking of AECI’s defined-benefit obligations for past and current employees had a negative affect in 2015 and 2016. "We knew we would be down," CEO Mark Dytor said on Tuesday. He said the property sale had a significant positive affect on the results in 2015. But profits from core businesses — specialty chemicals and explosives — rose 8.3% and 7.4% respectively, despite impairments of R82m in the period. The group also saw "excellent" cash generation. This soared 52% to R1.9bn as net debt was reduced by R881m to R297m, givi...
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