Vehicle parts maker Metair’s share price jumped 5.3% to R20 on Wednesday morning after it said it expected its interim earnings to more than double.
Metair said it expected to report on August 17 that its headline earnings per share (HEPS) for the six months to end-June grew between 105.6% and 114.8% from the matching period’s 54c.
The company said this was largely driven by improved performance from the automotive components business.
Metair said its battery division, which has diversified geographically through acquisitions in Turkey and Romania, had its results damped by the rand strengthening.
The vehicle component division would show "low double-digit turnover growth" as its production improved following teething problems with new products in the previous financial year.
"All of the automotive components businesses have settled and eliminated premium support cost, costs associated with volume ramp-up complexities and variable manufacturing activity associated with securing and launching the new light commercial vehicle from our major customer," the trading update said.
Its South African battery business improved its performance, but a 31% devaluation of the Turkish lira against the rand reduced the contribution of its Mutlu Akü subsidiary.